What Is Backup Withholding? The 24% Rule Every AP Team Must Know

Backup withholding is the IRS rule that turns every missing W-9 into a potential 24% liability for the paying company. It is not optional, it is not negotiable, and the penalties for failing to withhold when required can dwarf the withholding itself. Here is what backup withholding is, when it applies, and how to avoid it entirely.