Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
According to how the IRS explains it:For federal tax purposes, the usual common law rules are applicable to determine whether a worker is an independent contractor or an employee. Under the common law, you must examine the relationship between the worker and the business. All evidence of the degree of control and independence in this relationship should be considered. The facts that provide this evidence fall into three categories – Behavioral Control, Financial Control, and the Relationship of the Parties.
If you want the IRS to determine if you are an independent contractor or an employee, file Form SS-8 (PDF), Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
Is submitting the SS-8 form the only way to be sure?
I did read all of that already on the IRS website, still not 100% clear to me.
If the employer does not agree then yes, filing the SS8 is needed.There is no one rule that makes the determination but as you have explained it, you appear to be an employee.
Do they tell you when to come to work?
Do they say what to do and how?
Could I just send an email to the finance department?
Of your employer? Yes, I would think so.
I have a contract that outlines the services I need to perform as well as that I need to be on site, etc, etc/
Just having a contract is not the last word on the situation.
There are 7 general rules
Did you read those?
Is there anything in the contract I could look for that makes the determination explicit?
Not really as the behavior, financial, and relationship aspects are needed.
If not I will just ask the company via email. What is the question I am asking though? "For tax purposes do you consider me an employee?" Or does the determination come down to if the pay half of my payroll tax?
You would want to ask them this:
WHat determinating factors are they relying on to classify you as an independent contractor vs an employee?
Ok great, I'll take it from there thanks.
They will most likely know immediately where you are coming from?
You are most welcome. Your positive rating is always thanks enough.
I guess if they don't know or sound suspect I'll file the form.
You or they are allowed to file the SS8.
It covers them too. If they are wrong they stand to pay penalties and tax.
Got it. Thanks.