Quick Tip: Avoid Misclassification Claims – Guaranteed Regulatory and Legislative Compliance
The Internal Revenue Service (IRS) SS-8 Determination is an audit conducted by the IRS of an employer’s employee/independent contractor classification. The IRS would conduct an investigation to determine whether an individual is properly classified, in turn, this determination would be binding on the IRS and US DOL for that worker and other similarly situated workers should any subsequent issues arise. It is a fool-proof defense.
Few useful facts about the SS-8:
- Application form and application guide are available online (lengthy and detailed)
- No costs whatsoever
- Entails investigation of the employer and a representative worker over a period of at least 6 months
- Can be initiated by employer, employee or contractor
Ideally, endeavor to complete the audit before incurring heavy liability for unemployment insurance premiums and withholding taxes for misclassified workers.