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


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
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
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
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
Form SS-8, below the identifying information for the firm and the
under consideration have previously been examined, the Form
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
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


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