SS-8 - or Dishonest Boss

2007-08-22 by

Today, Nancy from West Virginia is confounded, “My boss sent me a 1099 instead of a W-2. But I was an employee, not a freelancer. What do I do?

Well Nancy, some employers like to cut costs at your expense. We can fix this, but beware if you’re still working there. Your boss is likely to face a full-blown payroll audit. So, if you can find a new job, do it fast, before IRS makes contact.

Grab a copy of Form SS-8 Determination of Worker Status.
http://www.irs.gov/pub/irs-pdf/fss8.pdf
It’s 3 pages long asking detailed questions about your job and your function. Filling it in, it will become obvious whether or not you fit the definition of an employee.

When you send it in, IRS will contact your bosses to get their side of the story. So be sure to attach proof to support your case. Include things like time sheets, your business cards, a company telephone list, or anything showing your name in company records.

Do it right. You’ll win.

Once IRS agrees you are an employee, send a copy off to the Social Security Administration so you get credit towards your retirement benefits.

With this proof in hand, prepare your tax return is if that 1099 were a W-2. Use Form 4852.
http://www.irs.gov/pub/irs-pdf/f4852.pdf Any good tax pro can help you out. For this, you will need their help.

And remember, you’ll find answers to lots of answers to questions about how to replace fraudulent 1099-MISC’s and other tax information, free. Where? At TaxMama.com

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IRS Form SS-8
Determination of Worker Status
IRS Form 4852
Substitute for W-2 and 1099-R

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  1. RJ Says:
    August 22nd, 2007 at 04:25 am

    Another option is to use IRS Form 4137 to report your portion of social security and medicare. The employer has to match your contributions. This also lets the IRS know that you are paying your fair share.

    This form is used many times when employees receive a W2 for normal wages and they get bonuses (yes some people still get them) and the employer puts these on a Form 1099MISC.

  2. Dianne Says:
    August 29th, 2007 at 01:43 pm

    My question is simple enough. Why did it take the employee so long to recognize what was going on here? They are handed a payroll check with a statement of what has been withheld, but they didn't worry about it until the end of the year? I really hope that I have misunderstood something in this case.

    Was a contract signed between the initial inquirer and their "employer"? If so, the terms of the contract should spell out what will or will not be deducted from the periodic settlement of the account with them.

    If the "maybe an employer" does not know how to do these things legally and correctly, then a payroll manager needs to be hired to sort it out and do it right.

    If I was the "employee/contractor" I would be looking for a new place to work. Ignorance is just not an excuse for either of them.

    Harsh? Perhaps, but those are my thoughts.

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