Both employers and employees have the opportunity to ask the IRS for a ruling on their employee vs. independent contractor status. In this video, learn about the benefit of obtaining an SS-8 ruling.
The Acme Company is looking to quickly grow…their operations, and in order to meet engineering demands,…they're recruiting both employees…and independent contractors.…Before they did, they made the decision to work…with their attorney to get what is known as…an advance IRS classification ruling,…by filing IRS Form number SS-8,…otherwise known as a Worker Status Determination.…Now, unlike most other rulings from the IRS…where there's a fee, this one's free.…
And while most of the time the form is filed…by a worker, it can also be used by an employer.…They are particularly useful if you're considering…taking on a great deal of independent contractors…and want to know your risk exposure.…The form asks over 50 questions to help…the determination of an independent contractor.…The questions they ask provide insight into what…the IRS is looking for.…So, let's review just some of them,…and I'll paraphrase a few.…
By now, all of these questions should start…sounding familiar to you.…Describe the work done by the worker…and provide their job title.…
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- Legal requirements for classifying independent contractors
- Financial and strategic benefits of contract employees
- Downsides of misclassification
- What triggers complaints and investigations?
- Licensing statutes, permit requirements, and anti-discrimination statutes
- Preventing misclassification claims
- Considering an SS-8 ruling
- Amnesty programs