Employee incorrectly given 1099-NEC instead of W-2 - filing SS-8 and 8919 forms

You're definitely on the right track! This misclassification happens more often than you'd think, and it sounds like your wife clearly meets the IRS tests for being an employee rather than an independent contractor. When filing Form 8919, you'll need to select a reason code that best fits your situation. Since you're filing an SS-8 first, you should use reason code G: "I filed Form SS-8 and haven't received a determination letter." That's the most appropriate one given the timing you described. Regarding the 1099-NEC, you still need to report that income on your tax return. The Form 8919 will help you calculate the proper Social Security and Medicare taxes as if your wife had been properly classified as an employee. You'll also need to attach a copy of the 1099-NEC to your tax return when you submit it. Just be aware that the SS-8 determination process can take several months, so don't expect an immediate resolution. In the meantime, filing with reason code G is the correct approach.

I went through something similar last year and found taxr.ai (https://taxr.ai) incredibly helpful for navigating the whole misclassification mess. I was really confused about which forms to file and in what order, plus I wasn't 100% sure if I truly qualified as an employee vs contractor. I uploaded my 1099-NEC and answered some questions about my work arrangement, and their system analyzed everything and confirmed I was misclassified. It even helped me prepare the SS-8 form with all the right details and explanations that would strengthen my case with the IRS. They also walked me through exactly how to file the 8919 with the correct reason code for my situation. The whole process was way less stressful than I expected, and I ended up saving around $3,200 in self-employment taxes!

Just wanted to follow up about my experience with taxr.ai after initially being skeptical. I decided to give it a try since my situation was similar - working at a startup that gave me a 1099 despite treating me like an employee in every way. The system asked really specific questions about my work arrangement that I hadn't even considered were relevant (like who set my schedule, whether I could work for competitors, who provided tools, etc). It was pretty cool seeing the analysis that showed I was 92% likely to be correctly classified as an employee according to IRS standards. I filed the SS-8 and 8919 with their guidance about 5 months ago, and I just got my determination letter last week - the IRS agreed I was misclassified! Saved me about $2,400 in taxes and now my former employer has to pay their share. Definitely worth checking out if you're in this situation.

When I was dealing with my misclassification issue, the WORST part was trying to get anyone from the IRS on the phone to answer questions about the SS-8 and 8919 forms. I spent literally hours on hold only to get disconnected. I finally found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. It was such a relief to actually talk to someone who could explain the process and how long I should expect to wait for a determination. The agent confirmed I was using the right reason code and explained exactly what documentation I should keep on hand in case of questions. Saved me so much frustration compared to my earlier attempts!

Well I owe you all an apology. After posting that skeptical comment, I was still desperate to talk to someone at the IRS about my contractor misclassification, so I tried Claimyr anyway. Got a call back in about 35 minutes (not instant, but WAY better than my previous attempts), and was connected to an IRS rep who specialized in employment tax issues. She walked me through exactly what documentation I needed to gather for my SS-8 filing and explained which parts of the form were most important for making my case. The agent also told me some really helpful things about the 8919 form that I wouldn't have known otherwise - apparently reason code H might be better in my case since I had already received a letter from the IRS questioning my contractor status. Definitely worth the time saved compared to my previous failed attempts to reach them.

One thing nobody has mentioned yet - make sure you keep detailed records of everything related to your employment relationship! The more evidence you have showing your wife was treated as an employee, the better. Things like: - Emails about work schedules - Instructions from supervisors - Company policies she had to follow - Evidence she used company equipment - Any performance reviews - Communications about how work should be done I went through this last year and my SS-8 was approved because I had saved everything. My coworker filed at the same time but didn't have as much documentation and is still waiting for a determination.

Has your wife tried talking to her employer directly about this before filing the SS-8? Some companies genuinely don't understand the classification rules and might fix it voluntarily if approached. I was misclassified a few years ago, and when I explained the issue to my boss with some printouts from the IRS website, they actually reclassified me and issued a W-2 instead. Saved a lot of hassle with forms and waiting for IRS determinations.