Filing of a SS-8 Form

[juanelaube]

My son and I both got a 1099-NEC Form. I understand that I have to file a SS-8 Form with the IRS. We only have answers for some of the questions on the SS-8, we don't have filled out the whole form, is that going to be a problem?

[DoninGA]

Why do you think you need to file an SS-8?

An SS-8 is filed with the IRS if you are seeking a determination if you were an employee or an independent contractor.

[juanelaube]

Thank you for your quick response.

We are filing the SS-8 form because TurboTax is saying we need to file one. Some fields don't apply to us. Can those stay empty?

[DoninGA]

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@juanelaube wrote:

Thank you for your quick response.

We are filing the SS-8 form because TurboTax is saying we need to file one. Some fields don't apply to us. Can those stay empty?

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Not sure where in the TurboTax program you would be asked to provide a SS-8.  Were you an independent contractor?  A Form 1099-NEC is given to independent contractors to report nonemployee compensation.

This is not really an income tax issue but one of if you should have been considered an independent contractor or you should have been considered an employee.

Firms and workers file Form SS-8 to request a determination of the status of a worker under the common law rules for purposes of federal employment taxes and income tax withholding.
Generally, under the common law rules a worker is an employee if the firm has the right to control what will be done and how it will be done.

It would be best if you use the SS-8 instructions.

IRS SS-8 Instructions - https://www.irs.gov/pub/irs-pdf/iss8.pdf

[Breslinger]

Like the previous writer- when I entered a 1099-NEC as income statement for my son, Turbo tax referred me to complete an SS-8.  Just not sure if this needs to be uploaded along with other documents for e-file.

[DaveF1006]

You don't need a SS-8 unless you have an employee that you need to file this for. Did you indicate you had employees when answering the interview questions?

@Breslinger

[USAFXXX]

My wife is a full time employee and had her signed on bonus paid one time. Unfortunately, she received a 1099 NEC. Turbo Tax did help with listing the sign on bonus and 1099 NEC amount under category H so it doesn’t show up as self employed or contractor. However it says we may need to file form SS8 and form 8919. Do we need to file both forms? 

[JamesG1]

You are saying that your spouse received an IRS form 1099-NEC from an employer.  What is category H?  Are you wanting to use Schedule H Household Employment Taxes?

SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withhold... is used to request that the IRS make a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.

IRS form 8919 Uncollected Social Security and Medicare Tax on Wages may be filed if you believe that your pay from your employer was not for services as an independent contractor.

You may want or need to use both forms.  But it is not clear where the IRS form 1099-NEC income been reported.  Please clarify and someone will help you.

[USAFXXX]

Thank you for sharing your thoughts on my situation. The same employer whom she worked for in 2023 gave her both a W2 and 1099 NEC (for sign in Bonus) and reported both firms to the IRS. I did some more research and think perhaps no need to complete SS8 and yes form 8919 category H needs to be completed to show that she received both W2 and 1099 NEC. She has been a full time employee for the company. 

[DianeW777]

Yes, you are correct.  File Form 8919 as you indicated and IRS will do the rest. They will go back to the company to obtain their share of the medicare and social security tax and charge your daughter only her share as an employee.

@USAFXXX 

[USAFXXX]

Thank you and that makes sense. I wanted ti make sure that she does not end up being treated as self employed. She received both W2 and 1099 NEC and once cannot be self employed and an employee of a company at the same time. What you said makes sense. 

[USAFXXX]

Thank you and one more question. In our scenario wife who received 1099 NEC is NOT SELF EMPLOYED. On Turbo Tax Pennsylvania State Rax return is flagging me to enter missing info for schedule C. Obviously no Schedule C applies since wife was an employee and not self employed. How do I complete the PA State return and bypass schedule C?

[DawnC]

Delete the Schedule C and her 1099-NEC.   Then re-enter the 1099-NEC and choose the option that says my employer reported this on a 1099-nec, and it should have been on my w-2.   This will generate the Form 8919.    @USAFXXX 

[USAFXXX]

Thank you Dawn. What you shared worked for the federal return but not for PA State return. PA State return has different screens. I am thinking perhaps i

can add the 2099 NEC bonus amount to existing W2 wage since W2 does show up on the State Tax return. 

[RobertB4444]

That should get the numbers on the PA return to match the federal so that should work.

@USAFXXX