Looking for a Form Ss-8 Templates? Download it for free!

Instructions for Form SS-8

Department of the Treasury

Internal Revenue Service

(Rev. May 2014)

Determination of Worker Status for Purposes of Federal Employment Taxes and

Income Tax Withholding

Section references are to the Internal Revenue Code unless

2. Subject to social security under mandatory coverage

otherwise noted.

provisions, or

3. Excluded from social security because there is no Section

Future Developments

218 Agreement and the employee is covered by a qualified

retirement plan.

Information about any future developments affecting Form SS-8

If the worker is uncertain whether a Section 218 Agreement

(such as legislation enacted after we release it) will be posted at

covers the state or local government entity, he or she should

contact the entity before submitting Form SS-8. If the entity is

uncertain about whether a Section 218 Agreement covers the

General Instructions

position in question, the entity should contact the State Social

Security Administrator for the state in which it operates.

Purpose of Form

The Form SS-8 Determination

Firms and workers file Form SS-8 to request a determination of

Process

the status of a worker under the common law rules for purposes

of federal employment taxes and income tax withholding.

The IRS will acknowledge the receipt of your Form SS-8.

Generally, under the common law rules a worker is an employee

Because there are usually two (or more) parties who could be

if the firm has the right to control what will be done and how it will

affected by a determination of employment status, the IRS

be done. See Publication 15–A, Employer's Supplemental Tax

attempts to get information from all parties involved by sending

Guide, for more information on how to determine whether a

those parties blank Forms SS-8 for completion. Some or all of

worker providing services is an employee or independent

the information provided on this Form SS-8 may be shared with

contractor.

the other parties listed on page 1. The case will be assigned to a

technician who will review the facts, apply the law, and render a

A Form SS-8 determination may be requested only in order to

decision. The technician may ask for additional information from

resolve federal tax matters. If Form SS-8 is submitted for a tax

the requestor, from other involved parties, or from third parties

year for which the statute of limitations on the tax return has

that could help clarify the work relationship before rendering a

expired, a determination letter will not be issued.

decision. The IRS will generally issue a formal determination to

the firm or payer (if that is a different entity), and will send a copy

The IRS does not issue a determination letter for proposed

to the worker. A determination letter applies only to a worker (or

transactions or on hypothetical situations or for other reasons

a class of workers) requesting it, and the decision is binding on

not in the best interests of tax administration. We may, however,

the IRS if there is no change in the facts or law that form the

issue an information letter when it is considered appropriate.

basis for the ruling. In certain cases, a formal determination will

Definition

not be issued. Instead, an information letter may be issued.

Although an information letter is advisory only and is not binding

Firm. For the purposes of this form, the term “firm” means any

on the IRS, it may be used to assist the worker to fulfill his or her

individual, business enterprise, organization, state, or other

federal tax obligations. In other very limited circumstances the

entity for which a worker has performed services. The firm may

IRS may issue a courtesy letter that the worker may rely on to

or may not have paid the worker directly for these services.

fulfill his or her federal tax obligations.

If the firm was not responsible for payment for services,

Neither the Form SS-8 determination process nor the review

be sure to enter the name, address, and employer

of any records in connection with the determination constitutes

identification number of the payer on the first page of

an examination (audit) of any federal tax return. If the periods

CAUTION

Form SS-8, below the identifying information for the firm and the

under consideration have previously been examined, the Form

worker.

SS-8 determination process will not constitute a reexamination

under IRS reopening procedures. Because this is not an

Note. Workers for state and local governments and/or interstate

examination of any federal tax return, the appeal rights available

instrumentalities may be covered by a Section 218 Agreement.

in connection with an examination do not apply to a Form SS-8

A Section 218 Agreement is a written, voluntary agreement

determination. If you disagree with a determination, you can

between the State Social Security Administrator and the Social

identify facts that were part of the original submission that you

Security Administration. All 50 states, Puerto Rico, the Virgin

think were not fully considered. If you have additional information

Islands and approximately 60 interstate instrumentalities have

concerning the relationship that was not part of the original

Section 218 Agreements extending social security coverage to

submission, you can submit the additional information and

specified employees. Workers covered under a Section 218

request that the office reconsider the determination.

Agreement are subject to social security and Medicare tax

Completing Form SS-8

regardless of any determinations made under the common law

rules.

Answer all questions as completely as possible. Attach

Whether a state or local government worker is subject to

additional sheets if you need more space. Provide information

social security and Medicare tax depends on which of the

for all years the worker provided services for the firm.

following three categories the worker falls into:

Determinations are based on the entire relationship between the

1. Subject to social security under a Section 218

firm and the worker. Also indicate if there were any significant

Agreement, or

changes in the work relationship over the service term.

May 16, 2014

Cat. No. 66200M

Instructions For Form Ss-8 - Determination Of Worker Status For Purposes Of Federal Employment Taxes And Income Tax Withholding

Related Articles

Related forms

Related Categories