In recent years, the IRS has increasingly focused on the compliance and enforcement of the misclassification of workers in industries such as construction, where the use of independent contractors is common. The determination of whether a worker is an "employee" or an "independent contractor" has significant financial implications for both the business and its workers. Independent contractors are generally not eligible for unemployment benefits, workers' compensation benefits or employer contributions to Social Security tax, Medicare tax and federal unemployment tax.

Form SS-8 is a form that may be filed by either a business or its workers to request that the IRS determine the status of the worker as either an employee or an independent contractor for federal employment tax and income tax withholding purposes. In most cases, the form is filed by a former worker seeking unemployment benefits, and businesses tend not to file because the perception is that the IRS will lean towards a conclusion that most workers are employees.

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