The IRS SS-8 form is designed to determine the employment status of a worker when there's uncertainty about whether the worker should be classified as an employee or an independent contractor. This classification is crucial because it affects tax obligations, benefits, and protections under labor laws. If you're unsure about your work status or facing classification issues, filling out the IRS SS-8 form can provide clarity. Click the button below to start the process.
In the complex landscape of employment tax obligations, distinguishing between an employee and an independent contractor is crucial. This distinction not only affects the way workers are paid but also determines the taxes that are owed and the protections and benefits to which workers are entitled. To address the complexities and uncertainties that businesses and workers may encounter in classifying employment relationships, the Internal Revenue Service (IRS) provides a critical tool: the SS-8 form. This form is designed to request a determination from the IRS about a worker's status, whether as an employee or an independent contractor. By completing and submitting this form, both employers and workers can gain clarity and ensure compliance with tax laws. The IRS evaluates the submitted information based on common law rules that focus on the degree of control and independence in the working relationship. As such, the SS-8 form plays a pivotal role in guiding tax responsibilities and protecting workers' rights, making it an essential element for both parties in navigating the nuances of employment tax requirements.
Form SS-8
Determination of Worker Status for Purposes
OMB. No. 1545-0004
For IRS Use Only:
(Rev. May 2014)
of Federal Employment Taxes and
Case Number:
Income Tax Withholding
Department of the Treasury
Earliest Receipt Date:
Internal Revenue Service
Information about Form SS-8 and its separate instructions is at www.irs.gov/formss8.
Name of firm (or person) for whom the worker performed services
Worker’s name
Firm’s mailing address (include street address, apt. or suite no., city, state, and ZIP code)
Worker’s mailing address (include street address, apt. or suite no., city, state, and ZIP code)
Trade name
Firm's email address
Worker's daytime telephone number
Worker's email address
Firm's fax number
Firm's website
Worker's alternate telephone number
Worker's fax number
Firm's telephone number (include area code)
Firm’s employer identification number
Worker’s social security number
Worker’s employer identification number (if any)
Note. If the worker is paid for these services by a firm other than the one listed on this form, enter the name, address, and employer identification number of the payer.
Disclosure of Information
The information provided on Form SS-8 may be disclosed to the firm, worker, or payer named above to assist the IRS in the determination process. For example, if you are a worker, we may disclose the information you provide on Form SS-8 to the firm or payer named above. The information can only be disclosed to assist with the determination process. If you provide incomplete information, we may not be able to process your request. See Privacy Act and Paperwork Reduction Act Notice in the separate instructions for more information. If you do not want this information disclosed to other parties, do not file Form SS-8.
Parts I–V. All filers of Form SS-8 must complete all questions in Parts I–IV. Part V must be completed if the worker provides a service directly to customers or is a salesperson. If you cannot answer a question, enter “Unknown” or “Does not apply.” If you need more space for a question, attach another sheet with the part and question number clearly identified. Write your firm's name (or worker's name) and employer identification number (or social security number) at the top of each additional sheet attached to this form.
Part I General Information
1This form is being completed by:
Firm
Worker; for services performed
to
.
(beginning date)
(ending date)
2Explain your reason(s) for filing this form (for example, you received a bill from the IRS, you believe you erroneously received a Form 1099 or Form W-2, you are unable to get workers' compensation benefits, or you were audited or are being audited by the IRS).
3
Total number of workers who performed or are performing the same or similar services:
4
How did the worker obtain the job?
Application
Bid
Employment Agency
Other (specify)
5Attach copies of all supporting documentation (for example, contracts, invoices, memos, Forms W-2 or Forms 1099-MISC issued or received, IRS closing agreements or IRS rulings). In addition, please inform us of any current or past litigation concerning the worker’s status. If no income reporting forms
(Form 1099-MISC or W-2) were furnished to the worker, enter the amount of income earned for the year(s) at issue $
If both Form W-2 and Form 1099-MISC were issued or received, explain why.
6
Describe the firm’s business.
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 16106T
Form SS-8 (Rev. 5-2014)
Page 2
Part I General Information (continued)
7If the worker received pay from more than one entity because of an event such as the sale, merger, acquisition, or reorganization of the firm for whom the services are performed, provide the following: Name of the firm's previous owner:
Previous owner's taxpayer identification number:
Change was a:
Sale
Merger
Acquisition
Reorganization
Description of above change:
Date of change (MM/DD/YY):
8Describe the work done by the worker and provide the worker’s job title.
9Explain why you believe the worker is an employee or an independent contractor.
10Did the worker perform services for the firm in any capacity before providing the services that are the subject of this determination request?
Yes
No
N/A
If “Yes,” what were the dates of the prior service?
If “Yes,” explain the differences, if any, between the current and prior service.
11If the work is done under a written agreement between the firm and the worker, attach a copy (preferably signed by both parties). Describe the terms and conditions of the work arrangement.
Part II Behavioral Control (Provide names and titles of specific individuals, if applicable.)
1What specific training and/or instruction is the worker given by the firm?
2How does the worker receive work assignments?
3Who determines the methods by which the assignments are performed?
4Who is the worker required to contact if problems or complaints arise and who is responsible for their resolution?
5What types of reports are required from the worker? Attach examples.
6Describe the worker’s daily routine such as his or her schedule or hours.
7At what location(s) does the worker perform services (for example, firm’s premises, own shop or office, home, customer’s location)? Indicate the appropriate percentage of time the worker spends in each location, if more than one.
8Describe any meetings the worker is required to attend and any penalties for not attending (for example, sales meetings, monthly meetings, staff meetings).
9
Is the worker required to provide the services personally?
10If substitutes or helpers are needed, who hires them?
11
If the worker hires the substitutes or helpers, is approval required?
If “Yes,” by whom?
12Who pays the substitutes or helpers?
13
Is the worker reimbursed if the worker pays the substitutes or helpers?
Page 3
Part III Financial Control (Provide names and titles of specific individuals, if applicable.)
1List the supplies, equipment, materials, and property provided by each party: The firm:
The worker:
Other party:
2 Does the worker lease equipment, space, or a facility? . . . . . . . . . . . . . . . . . . . .
If “Yes,” what are the terms of the lease? (Attach a copy or explanatory statement.)
3What expenses are incurred by the worker in the performance of services for the firm?
4Specify which, if any, expenses are reimbursed by: The firm:
5
Type of pay the worker receives:
Salary
Commission
Hourly Wage
Piece Work
Lump Sum
If type of pay is commission, and the firm guarantees a minimum amount of pay, specify amount. $
Is the worker allowed a drawing account for advances?
If “Yes,” how often?
Specify any restrictions.
7
Whom does the customer pay?
. . . . . .
If worker, does the worker pay the total amount to the firm?
No If
“No,” explain.
Worker
8
Does the firm carry workers' compensation insurance on the worker?
9What economic loss or financial risk, if any, can the worker incur beyond the normal loss of salary (for example, loss or damage of equipment, material)?
10
Does the worker establish the level of payment for the services provided or the products sold?
If “No,” who does?
Part IV
Relationship of the Worker and Firm
1
Please check the benefits available to the worker:
Paid vacations
Sick pay
Paid holidays
Personal days
Pensions
Insurance benefits
Bonuses
2
Can the relationship be terminated by either party without incurring liability or penalty?
If “No,” explain your answer.
Did the worker perform similar services for others during the time period entered in Part I, line 1?
If “Yes,” is the worker required to get approval from the firm?
4Describe any agreements prohibiting competition between the worker and the firm while the worker is performing services or during any later period. Attach any available documentation.
5 Is the worker a member of a union?
6What type of advertising, if any, does the worker do (for example, a business listing in a directory or business cards)? Provide copies, if applicable.
7If the worker assembles or processes a product at home, who provides the materials and instructions or pattern?
8What does the worker do with the finished product (for example, return it to the firm, provide it to another party, or sell it)?
9How does the firm represent the worker to its customers (for example, employee, partner, representative, or contractor), and under whose business name does the worker perform these services?
10If the worker no longer performs services for the firm, how did the relationship end (for example, worker quit or was fired, job completed, contract ended, firm or worker went out of business)?
Page 4
Part V For Service Providers or Salespersons. Complete this part if the worker provided a service directly to customers or is a salesperson.
1What are the worker’s responsibilities in soliciting new customers?
2Who provides the worker with leads to prospective customers?
3Describe any reporting requirements pertaining to the leads.
4What terms and conditions of sale, if any, are required by the firm?
5 Are orders submitted to and subject to approval by the firm? . . . . . . . . . . . . . . . . . .
6Who determines the worker’s territory?
Did the worker pay for the privilege of serving customers on the route or in the territory?
If “Yes,” whom did the worker pay?
If “Yes,” how much did the worker pay? . . . . . . . . . . . . . . . . . . . . . $
8Where does the worker sell the product (for example, in a home, retail establishment)?
9List the product and/or services distributed by the worker (for example, meat, vegetables, fruit, bakery products, beverages, or laundry or dry cleaning services). If more than one type of product and/or service is distributed, specify the principal one.
Does the worker sell life insurance full time?
Does the worker sell other types of insurance for the firm?
If “Yes,” enter the percentage of the worker’s total working time spent in selling other types of insurance
12If the worker solicits orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar
establishments, enter the percentage of the worker’s time spent in the solicitation . . . . . . . . . . . .
13Is the merchandise purchased by the customers for resale or use in their business operations? . . . . . . . .
Describe the merchandise and state whether it is equipment installed on the customers’ premises.
Yes Yes
No No
%
Sign Here
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my knowledge and belief, the facts presented are true, correct, and complete.
F
Title
Date
Type or print name below signature.
Filling out the IRS SS-8 form is a critical step for individuals or businesses seeking clarity on the employment status of workers for tax purposes. The determination by the IRS, following the submission of this form, can have significant implications for how workers are classified—either as independent contractors or as employees—and subsequently, how they are taxed. The process is detail-oriented, requiring careful consideration of the work relationship, so it's important to approach this task with a clear understanding of the required information and an organized plan.
To successfully complete the IRS SS-8 form, follow these steps:
Once submitted, the IRS will review the information and issue a determination that classifies the worker as either an independent contractor or an employee. This decision is based on the facts presented in the form, and while the process can take some time, it provides valuable clarity. It's also possible to seek professional advice or assistance, particularly if the working relationship is complex or if there are any uncertainties about how to answer specific questions on the form.
What is the IRS SS-8 form?
The IRS SS-8 form, known as the "Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding," is used to request an official determination of a worker's employment status. Individuals and firms fill out this form if they are uncertain whether a worker is an employee or an independent contractor. The classification affects how workers are taxed and their eligibility for benefits.
Who should file an SS-8 form?
Both workers and firms can file the SS-8 form. Workers who believe they've been incorrectly classified as independent contractors instead of employees can file this form. Firms that are uncertain about how to classify a worker for federal tax purposes should also file an SS-8 form to get clarification from the IRS.
What happens after the SS-8 form is filed?
After the SS-8 form is filed, the IRS reviews the provided information to make a determination on the worker's status. This process can take at least six months. The determination made by the IRS will be based on the facts and circumstances outlined in the form and any necessary additional information. The outcome will directly impact taxation and eligibility for employment benefits.
Is filing an SS-8 form confidential?
Yes, the information provided on the SS-8 form is confidential. Only authorized government personnel have access to the information for purposes of determining employment status. However, the IRS may contact the worker or firm for additional information or clarification.
What are the consequences of not filing an SS-8 form?
Not filing an SS-8 form when there is uncertainty about a worker's status may result in misclassification. This can lead to penalties and interest on unpaid taxes for employers, and for workers, it may mean missing out on employment benefits and protections. It's important to file an SS-8 form to ensure compliance with tax laws.
Can the decision on an SS-8 form be appealed?
Yes, the determination made by the IRS can be appealed. If a party disagrees with the IRS's determination, they can request a review of the decision. The appeal process will be outlined in the determination letter sent by the IRS.
How do I file an SS-8 form?
The SS-8 form can be completed and mailed to the IRS. The form is available for download on the IRS website. Complete instructions on how to fill out the form and where to mail it are also provided on the IRS website.
Are there deadlines for filing an SS-8 form?
There are no specific deadlines for filing an SS-8 form. However, it's recommended to file the form as soon as there is uncertainty about a worker's employment status to avoid potential tax issues and liabilities.
Do I need to hire a lawyer to file an SS-8 form?
While it's not required to hire a lawyer to file an SS-8 form, consulting with a legal or tax professional can be helpful in complex situations. A professional can provide guidance on how to complete the form and understand the potential implications of the determination.
What information do I need to provide on the SS-8 form?
The SS-8 form asks for detailed information about the worker and the firm, including the nature of the work performed, the business relationship between the parties, and the degree of control the firm has over the worker. Specific questions aim to gather enough information to make a correct determination of the worker's status.
Filling out the Internal Revenue Service (IRS) SS-8 form, which determines the classification of workers as employees or independent contractors, can be a complex process. One common mistake is not providing detailed information about the work relationship. This form requires specific details about how the worker and the company interact, including the level of control the company has over the worker's activities. When these details are omitted or are too vague, it may lead to the IRS making a determination based on incomplete information, potentially misclassifying the worker.
Another error occurs when individuals mistakenly believe that a signed contract declaring a worker as an independent contractor is conclusive evidence. However, the IRS does not consider such contracts as the sole factor in worker classification. The actual working relationship, as evidenced by the behavior of parties, is much more significant. Ignoring the substance over the form of a working relationship can lead to incorrect assumptions about the correct classification on the SS-8 form.
A third mistake involves overlooking state laws that may influence the classification process. While the SS-8 form is a federal document, the IRS will often consider state employment laws as part of the context for determining worker status. Thus, failing to account for these can result in an out-of-context analysis, potentially skewing the outcome.
Submitting the form without the necessary supporting documentation is another common pitfall. The IRS may require additional documentation beyond the SS-8 form to make an accurate determination. This could include contracts, payment receipts, or a detailed description of the work performed. Without these, the review process can be significantly delayed, or the IRS might make a determination without regard to the fuller picture.
Individuals often err by not considering the entirety of the worker's role and duties when filling out the form. The form asks for a comprehensive understanding of the worker's responsibilities, and a piecemeal or incomplete depiction can lead to a misclassification. Every aspect of the worker’s job, including tasks that might seem peripheral, can influence the final determination.
A significant oversight is neglecting to update the IRS on any changes in the working relationship after the SS-8 form has been submitted. If the nature of the work or the relationship between the company and the worker changes, it can affect the worker's classification. Failure to communicate these changes can result in the IRS making a decision based on outdated information.
Despite the importance of accurate classification, some may try to influence the outcome by providing biased or misleading answers on the SS-8 form. Such actions not only jeopardize the integrity of the classification process but also could lead to penalties or legal consequences if discovered.
Attempting to navigate the complexities of the SS-8 form without professional advice is also a common misstep. Given the nuances of employment law and IRS regulations, seeking advice from a legal or tax professional can provide clarity and reduce the risk of errors. This is especially critical for cases that fall into gray areas of classification.
Finally, procrastination in submitting the SS-8 form is a practical mistake that can have severe implications. Delaying the determination process can result in continued uncertainty about the correct classification, affecting tax obligations, eligibility for benefits, and protection under labor laws. Prompt submission allows for a timely resolution, enabling both the worker and the company to proceed with a clear understanding of their respective responsibilities.
When handling employment tax issues or determining workers' status, businesses or workers might need to use the IRS SS-8 form. However, this is just one piece of the puzzle in the broader context of employment documentation and tax compliance. Alongside the SS-8, several other forms and documents are commonly used to provide comprehensive information, maintain compliance, and ensure accurate tax reporting. Let’s delve into some of these essential forms and documents.
In the complex landscape of employment taxes and worker classification, these forms and documents play critical roles. Whether you're a worker seeking proper classification or a business aiming to maintain tax compliance, understanding and utilizing these forms in conjunction with the IRS SS-8 form is crucial. Each form contributes to a comprehensive approach to employment and tax reporting, ensuring that both workers and employers meet their obligations effectively.
The IRS SS-8 form, used for determining worker status as an employee or independent contractor, shares similarities with the W-9 form. The W-9 form is requested by businesses from freelancers or independent contractors to accurately report earnings to the IRS. Both forms involve the IRS's classification and reporting of income, yet the W-9 is from the worker’s perspective, providing their taxpayer identification number and certification.
Similarly, the W-4 form, used by employees to indicate their tax withholdings to their employer, reflects an important aspect of employee classification that the SS-8 form addresses. While the SS-8 determines the status, the W-4 assumes the status of an employee has been established and moves forward with the applicable tax withholding based on that status.
The 1099-MISC form, used to report payments made to independent contractors, is connected to the determinations made by the SS-8 form. If the SS-8 form classifies a worker as an independent contractor, the payer will report their payments on a 1099-MISC, showcasing the role of the SS-8 form in defining tax reporting obligations.
The I-9 form, required for verifying the identity and employment authorization of individuals hired for employment in the United States, also intersects with the SS-8 in terms of employment classification. Although the I-9 is focused on legal work authorization, the process underscores the importance of accurately determining worker status, underscoring the foundational role of the SS-8 determination.
The IRS 940 form, used by employers to report annual Federal Unemployment Tax Act (FUTA) tax, is indirectly related to the SS-8 form. The SS-8 determination of employee status impacts whether an employer is responsible for paying unemployment taxes on behalf of their workers, which is then reported on the 940 form.
Likewise, the 941 form, which employers use to report income taxes, social security tax, or Medicare tax withheld from employees' paychecks, is influenced by the SS-8 form's determination. The classification of a worker as an employee necessitates the filing of the 941 form, highlighting the interplay between worker classification and tax reporting responsibilities.
The Schedule C form, used by sole proprietors to report their business income and expenses, echoes the independence aspect of the SS-8's contractor classification. If the SS-8 form classifies a worker as an independent contractor, they might need to file a Schedule C for their tax returns, illustrating the direct impact of the SS-8 determination on tax filing requirements.
State labor and tax forms that vary by jurisdiction but serve similar purposes to the SS-8 form also exist. These forms might be used to determine worker status for state employment laws and state tax obligations, reflecting the broader application of the issues addressed by the SS-8 form across different levels of government.
The IRS 8952 form, used for voluntary classification settlement program (VCSP) applications, directly relates to the SS-8 by allowing employers to reclassify workers as employees for employment tax purposes. This form is an avenue for employers to proactively address worker classification issues, marking a proactive counterpart to the SS-8 determination process.
Lastly, the ACA forms (1095-A, B, and C), used for reporting individuals' health insurance coverage in compliance with the Affordable Care Act, are indirectly related to the SS-8 form through employee classification. The determination of whether an individual is an employee affects the applicable ACA reporting requirements and forms, showcasing the wide-reaching implications of worker status determinations.
Filling out the IRS SS-8 form, which is used to determine the status of a worker for purposes of federal employment taxes and income tax withholding, requires careful attention to detail. To assist in this process, here are 10 do's and don'ts to consider.
By following these recommendations, you can improve the likelihood of a smooth and prompt review process. Always consult with a tax professional if you encounter uncertainties during this process.
Navigating the waters of employment tax forms can often feel like trying to solve a puzzle without all the pieces. Among these, the IRS SS-8 form stands out, primarily due to the many misconceptions surrounding its purpose and use. Let's debunk some of the most common myths to shed light on this enigmatic document.
Understanding the IRS SS-8 form is crucial for both workers and employers in navigating employment tax obligations accurately. By dispelling these myths, individuals and businesses can make informed decisions regarding their tax and employment classifications, ensuring compliance with IRS regulations and avoiding potential penalties.
The Internal Revenue Service (IRS) Form SS-8 plays a crucial role in determining the classification of workers as employees or independent contractors. This distinction is pivotal for tax purposes and for determining the eligibility for benefits and protections under employment law. Here are six key takeaways for effectively filling out and using the Form SS-8:
Note: While the Form SS-8 determination is specific to federal tax obligations, it's important to also consider how this determination might impact state tax obligations and other legal determinations of worker status.
Easy Expunctions San Antonio - Capitalize on Texas legislation allowing for the expunction of certain arrest records by submitting this detailed petition.
Va Reimbursement for Medical Expenses - Allows veterans to present their case for reimbursement for medical services got without VA consent.
Community Service Log Template - Assisted at a homeless shelter, serving meals and helping with shelter operations.