How to Prepare IRS Form SS-8. When a business is treating a worker or a group of similar workers as independent contractors rather than as employees, it avoids paying employment taxes and fringe benefits. The worker can file Form SS-8 to have the Internal Revenue Service (IRS) make a determination of employee status.
Download Form SS-8 from the IRS website (see Resources below). Review the general instructions on Page 4 of the form and also the determination process.
Explain your reason for filing Form SS-8 in Part I and state how many workers perform similar services at the company. Make copies of supporting documents, such as written agreements and information reports.
Indicate the level of behavior control exercised by the company in Part II of the form. State whether training was provided, who schedules work assignments, and when, where and how they are performed.
Describe the financial control by the company in Part III of the form. This section covers equipment and materials provided by the worker and by the company. State how you are paid for the job, what expenses are not reimbursed, and whether you can incur financial risk or loss.
List any benefits received from the company in Part IV of the form. State whether you can perform similar services for others without getting approval from the company.
Complete Part V of the form only if you are a salesperson or provide services directly to customers.
Attach copies of supporting documents to the signed Form SS-8 and send to the proper IRS address listed in the instructions. The proper IRS address is based on where the business is located.
It is important to complete all questions on the form or indicate if they don't apply, because incomplete requests may not be processed.