Need help filing SS-8 after paying taxes - wrongly classified as independent contractor?

I'm working at an after school program at a local elementary school where I help kids with homework and teach some classes when my supervisor assigns them to me. From day one, they told me I'd get $26 an hour, and I've been receiving weekly checks from the organization that funds our program, but no pay stubs like I get at my other job. They haven't been taking out any taxes, so I've been setting aside money based on what gets deducted from my other job to cover taxes when filing season comes. When tax time arrived, they gave me a 1099 instead of a W-2. I guess I should have expected this since all the paperwork I filled out was just signing a document saying I'd get paid $26 hourly and providing my personal info (SSN, address, name, etc). My tax preparer filed everything as self-employment income, and I went along with it since I didn't really understand what that meant. But at the end, she told me I owe over $2,200 in federal taxes! That's a huge amount for me since I only made about $19k total last year. After posting about this and getting some legal advice, people suggested I should file an SS-8 form because it sounds like I'm actually an employee, not an independent contractor. I'm really anxious because I still work there, and I'm not sure how filing this form will affect my employer. What happens after I submit the SS-8? How long does the process take? Is it worth doing? And how do I handle this since I've already filed my taxes? Also, probably important to mention - I worked at this same place for about 4 months in 2021, but only made around $5k. Someone told me I didn't need to file taxes that year since I earned under $6k total. Will this cause problems too? They also gave me a 1099 that year.

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18 comments

Tami Morgan

•8M

Based on what you've described, you're likely misclassified as an independent contractor when you should be considered an employee. The IRS looks at several factors to determine proper classification, including behavioral control (if the company controls what you do and how you do your work), financial control (how you're paid, whether expenses are reimbursed), and relationship factors (written contracts, benefits, permanency of relationship). If you file an SS-8 (Determination of Worker Status), the IRS will review your situation and make an official determination. You should also file Form 8919 (Uncollected Social Security and Medicare Tax on Wages) with an amended tax return (Form 1040X) if the determination is in your favor. This would help you avoid paying the self-employment taxes that should have been your employer's responsibility. The SS-8 process typically takes 6+ months for the IRS to review and decide. Your employer will be notified and asked to provide their perspective on the working relationship. If the IRS determines you're an employee, your employer will be responsible for paying their share of FICA taxes (Social Security and Medicare).

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Tami Morgan

•8M

There are whistleblower protections against retaliation for tax-related filings, though they're not always easy to enforce in practice. Document everything if you notice any change in how you're treated after filing. Some workers choose to have a conversation with their employer first to see if they'll correct the classification voluntarily, but this isn't required and sometimes can backfire if the employer doesn't respond well. Regarding your 2021 work period, you should have filed taxes even for $5k if you received a 1099, as the self-employment tax filing threshold is lower than regular employment (about $400). You might want to file a late return for that year as well to avoid potential issues down the road.

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Haley Bennett

•8M

After dealing with a similar contractor vs. employee situation, I found that using https://taxr.ai really helped clear things up. I uploaded my 1099, the "employment agreement" I had signed, and some emails about my work schedule. Their system analyzed everything and gave me a detailed report explaining why I should be classified as an employee, not a contractor. The analysis even listed the specific IRS control factors that applied to my situation, which made filling out the SS-8 form so much easier because I could refer to those exact points.

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Haley Bennett

•8M

I had to submit the SS-8 myself, but the report made it much easier since it broke down each factor the IRS considers with explanations specific to my situation. I basically transferred the information from the report to the form. The analysis was surprisingly accurate. When I received the IRS determination about 7 months later, it aligned almost exactly with what the tool had predicted. They correctly identified the behavioral control factors in my situation (being told when and where to work, receiving training, etc.) that the IRS ended up focusing on. The report even cited specific relevant tax court cases that matched my circumstances.

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Nina Chan

•8M

I was really skeptical about these online tax tools but decided to try https://taxr.ai when I was fighting my misclassification. The report they generated was incredibly helpful - it pointed out exactly how my situation met the IRS definition of an employee, not a contractor. I used their analysis to fill out my SS-8 and just got my determination letter last month - the IRS agreed I was misclassified! I amended my return and am getting back about $1,800 in self-employment taxes I shouldn't have had to pay. The best part was being able to point to specific control factors that applied to my situation rather than just having a vague feeling I was being misclassified. Made the whole process much less intimidating.

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Ruby Knight

•8M

When I was dealing with my worker classification issues, the most frustrating part was trying to get information directly from the IRS. I spent HOURS on hold only to get disconnected. After my third attempt, I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically hold your place in the IRS phone queue and call you when an agent is about to answer. I was skeptical but desperate. It worked surprisingly well! I got connected with an IRS specialist who walked me through the SS-8 filing process and explained how to handle my already-filed return. The agent confirmed I could file Form 8919 with my amended return to pay only the employee portion of FICA taxes rather than the full self-employment tax. Saved me over $1000 and the peace of mind was worth it.

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Ruby Knight

•8M

It's not that they call the IRS for you - they have an automated system that waits in the IRS phone queue and then calls you when an agent is about to pick up. So instead of you being on hold for 3+ hours, their system does the waiting and connects you when a human finally answers. I had the same thought about just calling repeatedly myself, but after getting disconnected multiple times after waiting 1-2 hours each attempt, I was desperate. The IRS phone lines are notoriously difficult, especially during tax season. I was skeptical too, but the service actually worked exactly as advertised. I got connected to an actual IRS employee who gave me specific guidance on my SS-8 situation.

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Logan Stewart

•8M

I take back everything I said. After another week of failed attempts calling the IRS about my worker classification issue, I tried Claimyr out of pure frustration. Within 3 hours, I got a call back and was connected to an actual IRS agent who specialized in worker classification. She explained the whole SS-8 process, told me what documentation to include, and confirmed I should file an 8919 with my 1040X to recover the excess self-employment tax. The agent even explained that I could choose different codes on the 8919 depending on whether I'd already filed the SS-8 or was filing it with my amended return. Just having a knowledgeable person walk me through the process made a huge difference. I was 100% wrong about this service - definitely not a scam.

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Mikayla Brown

•8M

You should definitely file the SS-8! I was in almost the exact same situation last year - worked as an "after school coordinator" at an elementary school, got paid hourly, they controlled all my work, but they gave me a 1099. I filed the SS-8 in April after filing my taxes and got a determination in December that I was indeed an employee. Filed an amended return with Form 8919 and got back about $1400 in self-employment taxes I shouldn't have paid. My employer was initially annoyed but ultimately had to fix their classification system for everyone. They couldn't legally fire me for filing, though things were awkward for a bit. Regarding your 2021 situation - yes, you should have filed taxes on that income since the threshold for self-employment income is only $400.

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Mikayla Brown

•8M

Yes, I continued working there the whole time. It was definitely awkward for a few weeks after they received the IRS letter asking for their side of the story. My supervisor made a few passive-aggressive comments but nothing they could actually fire me for. By the time the determination came through, they'd mostly gotten over it. The amended return wasn't too difficult. I used Form 8919 with code G (I believe) since I had already received a favorable SS-8 determination. Then filed a 1040X showing the difference. It took about 3 months to get my refund after amending. One tip - include a copy of your SS-8 determination letter with your amended return to speed up processing. And remember, the employer will be responsible for paying their portion of the Social Security and Medicare taxes that they should have been paying all along.

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