Filing taxes with Form SS-8 for misclassified contractor vs employee determination

You're in a common situation with the Form SS-8 process. Here's what you should know: The SS-8 determination process typically takes 6+ months (sometimes even longer), so waiting for a determination before filing your April taxes isn't realistic. You should file your taxes using the information you currently have. If you believe your partner was misclassified, you can file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" along with your regular tax return. This form allows you to report the income as a misclassified worker while only paying the employee's portion of Social Security and Medicare taxes (instead of the full self-employment tax). Make sure you check code G in box 8 of Form 8919, which indicates "I filed Form SS-8 and haven't received a determination letter." Then attach this to your regular Form 1040 tax return. The agency should have provided a 1099-NEC by January 31. If you haven't received it, contact them ASAP as you'll need the income information to file.

I had almost the exact same situation last year with a state agency job. Used taxr.ai (https://taxr.ai) to help me analyze my employment agreement and all the factors that determine employee vs contractor status. The tool actually analyzed my situation and gave me a breakdown of all the control factors the IRS looks at (behavioral control, financial control, relationship factors, etc.). In my case, they were definitely controlling when and how I worked, provided all equipment, and wouldn't let me work for others during certain hours. The analysis showed I was 90% likely misclassified based on IRS precedent. I filed Form SS-8 with all the documentation from taxr.ai's analysis and also followed the advice to file Form 8919 with my regular return. Saved me from paying the full self-employment tax while waiting for the determination. Just make sure you keep good records of everything!

Just wanted to update everyone. I used taxr.ai after seeing it mentioned here and wow - it was super helpful! The analysis confirmed what we suspected - my fiancée was definitely misclassified according to the IRS factors. The tool gave us a detailed report showing exactly which control factors indicated employee status (the agency controlled her schedule, provided equipment, trained her, etc.). We filed our taxes using Form 8919 with code G like suggested here, and attached all the documentation from the analysis to our SS-8 form. Already got our refund from the tax filing (saved almost $1,800 in self-employment taxes!), and now we're just waiting on the official determination. The report made me feel so much more confident about challenging the classification. Thanks for the recommendation!

If you're trying to reach the IRS about this issue, good luck! I spent WEEKS trying to get through to someone about my misclassification issue last year. Every time I called I'd sit on hold for 1-2 hours and then get disconnected. Super frustrating when you're dealing with something time-sensitive. I eventually used Claimyr (https://claimyr.com) to get through to an actual IRS agent. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you when an agent is on the line. When I finally spoke with someone, they were actually really helpful about the Form SS-8 process and gave me specific guidance on how to properly document everything. The agent walked me through which additional forms I needed and how to handle my current year taxes while waiting for determination. Saved me so much stress!

So I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I was desperate to talk to someone about my own tax situation (different issue, but still needed IRS help). I got connected to an IRS agent in the correct department within about 40 minutes of starting the process. The service called me when they had an agent on the line, and I actually had a 25-minute conversation with a super helpful IRS employee who answered all my questions about Form SS-8 and the determination process. The agent told me they're seeing tons of misclassification cases from government contracts lately and gave me some tips for documenting my case properly. Totally changed my perspective on dealing with the IRS - turns out they're helpful when you can actually reach them! Sorry for being a doubter.

One important thing to note that others haven't mentioned: if your fiancée was misclassified, the employer would be responsible for their portion of the FICA taxes (Social Security and Medicare). That's 7.65% that they should have paid but didn't. When you file Form SS-8 and Form 8919, you're essentially asking the IRS to go after the employer for their share while you pay just your portion. This is why some employers fight these determinations - they end up owing back taxes plus potential penalties. Make sure you have good documentation of all the factors that show she was treated as an employee: set hours, supervision, training provided, equipment provided, etc. The stronger your case, the better chance of a favorable determination.

just a heads up - i did an SS-8 filing last year and it took almost 9 months to get a determination letter! the irs is super backed up with these. definitely file your taxes now using form 8919 like others said. also make sure you keep copies of EVERYTHING. every email, every instruction they gave her, work schedule, etc. the more proof you have that they treated her like an employee the better.

One more thing to consider - if this was a government agency, there's a good chance they have specific policies about contractor vs employee classification that they're supposed to follow. Federal agencies in particular have gotten in trouble for misclassifying workers to avoid paying benefits and taxes. You might want to look up whether this agency has had previous issues with worker misclassification. Sometimes there are patterns, and if the agency has been cited before, it could strengthen your case. The Government Accountability Office (GAO) has done reports on this issue across various federal agencies. Also, since you mentioned they haven't sent any tax documents yet, that's actually a red flag. Even if they classified her as a contractor, they're legally required to send a 1099-NEC by January 31st if they paid her more than $600. I'd follow up on that immediately - you'll need that information regardless of how you file. Good luck with the SS-8 process! It sounds like you have a strong case based on what you've described.