When hiring, businesses must decide whether the worker is an independent contractor or employee. If the business owner has trouble determining a worker’s status, they can file Form SS-8 and request classification on the worker’s status. After filing the form, the IRS will classify the individual, preventing the business from facing misclassification penalties.
How do you file for SS-8?
Form SS-8 has four pages and is divided into five section and can be filled out by either the worker or the business and covers the following topics:
- General Information
- Behavioural Control
- Financial Control
- Relationship of the Worker and Firm
- For Service Providers or Salespersons
Businesses will need to include their contact information and the worker’s contract information. The form also requests information on the worker’s job, their responsibilities, and how the business handles the worker’s pay and taxes. Lastly, businesses will need to describe their relationship with the worker and the worker’s relationship with customers.
When hiring any type of worker, it’s crucial for companies to keep accurate records, as certain processes—such as Form SS-8—require documentation, contracts, and invoices.
The taxpayer must sign and date the form before mailing it to the following address:
Internal Revenue Service
Form SS-8 Determinations
P.O. Box 630
Holtsville, NY 11742-0630
IRS will return forms with a stamped signature or indicate if there’s incomplete information.