What is the purpose of an SS-8 form?
Firms and workers file Form SS-8 to request a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.
What is an SS-8 determination?
IRS Definition Filing a Form SS-8 requesting a “worker status” determination means you or the firm is asking the IRS to establish if the services you provide to the firm are those of an employee or an independent contractor.
Is an SS-8 required?
The information you provide to the IRS on Form SS-8 is used to differentiate independent contractors from employees. You can be liable for these employment taxes for these individuals if your business classifies an employee as an independent contractor and you don’t withhold and match them.
What is the difference between employee and contractor?
An employee is on a company’s payroll and receives wages and benefits in exchange for following the organization’s guidelines and remaining loyal. A contractor is an independent worker who has autonomy and flexibility but does not receive benefits such as health insurance and paid time off.
Where do I file form SS 8?
Write “Protective Claim” at the top of the form, sign and date it. In addition, enter the following statement in Part III: “Filed Form SS-8 with the Internal Revenue Service Office in Holtsville, NY.
How do I file a misclassified tax return?
File Your Tax Return with IRS Form 8919. If you think you’ve been misclassified as a contractor, you can avoid having to pay more than half of these taxes yourself by filing IRS Form 8919, Uncollected Social Security and Medicare Tax on Wages.
What qualifies someone as a 1099 employee?
1099 “employees” are generally individuals who are in an independent trade, business, or profession in which they offer their services to the general public (not just a single customer or employer), including: Doctors. Dentists.
Do I need to file 941 if no employees?
Generally, any person or business that pays wages to an employee must file a Form 941 each quarter, and must continue to do so even if there are no employees during some of the quarters.
Why is Form SS-8 so important?
The IRS believes that millions of workers aren’t getting the support they deserve because of this mismatch — which is why Form SS-8 is so important. Misclassified workers miss out on overtime pay, protection from anti-discrimination laws, minimum wage laws, and even workers compensation.
How do I submit Form SS-8 to the IRS?
Form SS-8 must be mailed to the IRS. It can’t be transmitted electronically or by fax, and you must submit the original form, not a copy. 4 Sign the completed Form SS-8 and send it to: The IRS will begin researching the situation when it receives your request, and it might reach out to you or to the worker for additional information.
How long does it take for the IRS to respond to SS-8?
Sign the completed Form SS-8 and send it to: The IRS will begin researching the situation when it receives your request, and it might reach out to you or to the worker for additional information. The entire process can take up to six months. The IRS will issue either a determination letter when it has made a decision, or an informational letter.
When to request a Form SS-8 determination letter?
A Form SS-8 determination may be requested only in order to resolve federal tax matters. If Form SS-8 is submitted for a tax year for which the statute of limitations on the tax return has expired, a determination letter will not be issued.