How long does an ss8 determination take?

It takes about two months to get approved in the program. Employers who are approved receive a guarantee that the IRS will not audit their past payroll activities. And they only have to pay 10% of the payroll taxes they would have paid for the previous year, without any penalties. This is a terrific deal.

What is an SS-8 determination?

More In Forms and Instructions Filing a Form SS-8 requesting a “worker status” determination means you or the firm is asking the Service to establish if the services you provide to the firm are those of an employee or an independent contractor.

What happens when you file ss8 form?

IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, is a form the IRS uses to determine if a worker is an employee or an independent contractor.

Do you qualify for relief under section 530?

Section 530 is a relief provision that terminates a taxpayer’s employment tax liability with respect to an individual not treated as an employee if three statutory requirements are met: 1) reporting consistency; 2) substantive consistency; and 3) reasonable basis.

What happens when I file form 8919?

Use Form 8919 to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer. By filing this form, your social security earnings will be credited to your social security record.

Where do I send my form SS-8?

Write “Protective Claim” at the top of the form, sign and date it. In addition, enter the following statement in Part III: “Filed Form SS-8 with the Internal Revenue Service Office in Holtsville, NY.

What is statutory employee income?

A statutory employee is anyone who pays half of the contribution to Medicare and Social Security. These two taxes are collectively known as Federal Insurance Contributions Act (FICA) taxes and are divided as follows: Social Security contributions: 6.2% for the employer and the employee for a total of 12.4%.

How do I know if I am an employee or independent contractor?

If the worker is paid a salary or guaranteed a regular company wage, they’re probably classified as an employee. If the worker is paid a flat fee per job or project, they’re more likely to be classified as an independent contractor.

How do I know if I am an independent contractor?

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.

What is a CSP offer?

CSP agreements are closing agreements that bind the Service and the taxpayer to prospective tax treatment for future tax periods. 6.8., Cases Excluded from CSP, it is mandatory that the examiner present a CSP offer to a taxpayer. The taxpayer has the option of either accepting or rejecting the offer.

What is Section 530 of the Revenue Act of 1978?

Section 530 of the Revenue Act of 1978 (not part of the Internal Revenue Code) allows the business to treat a worker as an independent contractor (i.e., as “not being an employee”) for employment tax purposes regardless of the worker’s status under the common law control rules.

What is an SS-8 form?

INFORMATION FOR… Firms and workers file Form SS-8 to request a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.

Why can’t I get my 8A status?

The problem with applicants seek to get their 8a status is that they are not familiar with the depth of information and supporting evidence for your allegations. Everyone’s story and facts for meeting the SBA’s 8a requirements are different.

Can I claim a small disadvantaged 8a business status?

If by claiming economic of the claiming disadvantaged status net worth is not less than $250,000, then the SBA will disapprove your small disadvantaged 8a business status. As a result, your 8a certification eligibility will suffer.

What is the 8 (a) certification?

The 8 (a) certification qualifies your business as eligible to compete for the program’s sole-source and competitive set-aside contracts.