Get Form SS-8 (Rev. December 2023). Determination Of Worker Status For Purposes Of Federal Employment

Workers and businesses can file Form SS-8 to ask the IRS to determine if a worker is an employee or an independent contractor. You can then use our decision to correctly file your federal income tax and employment tax returns.

Form SS-8 Outcomes A determination letter that determines the worker's status. Typically, the IRS issues it to the employer, then sends a copy to the worker. This letter is binding. An information letter intended to help the worker fulfill their federal tax obligations.

The law further states that independent contractor status is evidenced if the worker: (1) has a substantial investment in the business other than personal services, (2) purports to be in business for himself or herself, (3) receives compensation by project rather than by time, (4) has control over the time and place ...

When deciding whether you can safely treat a worker as an independent contractor, there are two separate tests you should consider: The common law test; and The reasonable basis test. The common law test: IRS examiners use the 20-factor common law test to measure how much control you have over the worker.

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.

If your employer has classified you as an independent contractor and you believe you should be considered an employee, you can file a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS and ask the IRS to make a determination as to what your worker ...

To determine whether a person is an employee or an independent contractor, the company weighs factors to identify the degree of control it has in the relationship with the person. Does the company control or have the right to control what the worker does and how the worker does the job?

The IRS will review the facts and circumstances and officially determine the worker's status. Be aware that it can take at least six months to get a determination. A business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8PDF.