"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:

- quote -

I filed an SS-8 regarding an employer who considered me an
independent contractor. After an interminable wait, the IRS
ruled I was an employee, and the employer ignored the
ruling.

Until after I left the company and won a union grievance
against them. _Then_ they withheld $2,800 from a $7,500
settlement.

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
Countdown to Regime Change: T-minus 30 days.

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- quote -

I agree!!!= If the contributor would like the form, here
is the link:

http://www.irs.gov/pub/irs-pdf/fss8.pdf

Of course, the result may be termination of the work
ENTIRELY. BEFORE submitting the SS-8, I'd recommend this
person address it to those who are paying him, and come to
an understanding of the law, in lieu of asking IRS for a
determination.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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Harlan Lunsford <hlunsford[at]bellsouth.net> writes:

- quote -

I love you, as well, Harlan!!!= However, if we were to
rely on our "feeling", without justification, many problems
could evolve. Rather than speculate, It might have been
best just to have asked the contributor for more facts.

In keeping with your opinion, and in accordance with the
reality you've expressed, to wit, I've snipped bits, since
in order to view your reference, contributors would have to
find the thread to know what you are addressing!!!=
Immediately, I'm a little too busy to do that!!!= BTW,
out of politeness, I won't address my opinion of your "half
right" question!!!=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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GTB wrote:

- quote -

Time to get an IRS Form SS-8 and answer the questions....

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- quote -

True, however it also necessitates filling out an SS-8 form
and mailing it separately to IRS, along with a copy with the
tax return.

And let's not forget that when a form 4137 is used in cases
such as this, to make an extra copy for client to sign and
mail to SSA in Wilkes-Barre so his records can be credited.

ChEAr$,
Harlan Lunsford, EA n LA

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- quote -

(rest of John's reply snipped for brevity is the soul of wit.
or am I half right?) anyway.
(Moderator: please restrain yourself! grin)

Although the OP didn't give us enough information to play 20
questions, I have a "feeling" he is a common law employee,
eh?

And if he is, should we tell him about the use of an SS-8
form?

ChEAr$,
Harlan Lunsford, EA n LA

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- quote -

Sounds like he is paying you as an independent contractor
even though it sounds like you should be considered an
employee. You should ask him what form he is thinking of
giving you at the end of the year (Form W-2 or Form
1099-MISC). Then go to your accountant with the details and
ask what course of action you should take next. If you
don't get this resolved immediately it could be a mess for
both you and your boss.

--
Robert J. Romano, CPA
99 Massachusetts Avenue-Suite 4
Arlington, Massachusetts 02474-8600
www.romanocpa.com

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GTB wrote:

- quote -

I know what you mean
Employment, as defined by the laws, rest on a few issues:
1] Are you taking the risk? (No-its employment)
2] Are you dependent on this job? (Do you do the same kind
of job elsewhere? If yes, you are a contractor. If no,
you are employed.
3] Do you have a share in the profits?

These are the decisions that are used in finding out an
employment status. It hardly matters whether there is an
employment agreement or not.

I am in the same position, my employer has not had any
paperwork done, and has not even asked for my social
insurance number. The law says that we have to count our
income according to an employment status. I will be waiting
until its tax season(Jan-Feb) to see if he provides me with
a T4 slip(Canada), but even if he doesn't, I am supposed to
report this income.

If you wish for the CRA(or IRS) to determine whether its
employment, you can put in a request for them to assess the
situation.

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"GTB" <jack[at]yahoo.com> wrote:

- quote -

Ask the man if you are going to get a 1099, that know makes
you a contractor, not an employee. However if he treats like
you were an employee he is probably in violation of
employment law.

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GTB wrote:

- quote -

He's treating you as an independent contractor -- I think
so, anyway, although a poster a few months ago stated he was
a W-2 employee with no income tax withholding -- so, you
treat yourself as self-employed. Your best bet is to use
the 1040-ES and instructions to estimate your tax, and pay
estimated taxes on that form.

It may be that you SHOULD be treated as an employee. If you
request a determination letter from the IRS, they might
decide that you are an employee, requiring your employer to
file the appropriate paperwork -- and probably to fire you.

If this is the first time you've been an independent
contractor, you may want to contact a tax professional NOW,
so you can keep track of deductible expenses.

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- quote -

It looks like the new "employer" is treating you as an
Independent Contractor. If you believe you are really an
employee, but your employer refuses to go along, there are
ways to get the IRS on your side (but you might not want to
do that if you expect to keep the job for a long while).

It's also possible to use Form 4137 to report social
security and Medicare tax on your income (this is what would
be deducted from your pay in a real W-2 situation). That's a
lot cheaper than using Schedule C and SE.

Tom

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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"GTB" <jack[at]yahoo.com> wrote:

- quote -

The person who you are working for now has treated you as an
independent contractor. The bad thing about this is that
your are assumed to be self-employed and subject to income
tax at whatever tax rate you fall into plus self-employment
tax at the rate of 15.3% on the profit from your business.
This guy is saving him having to pay the matching FICA taxes
on you as well as Federal and State unemployment taxes. He
is not looking out for your personally taxwise.

Does he tell you when to come to work, when to take breaks,
when to go to lunch? Does he provide the space, tools, and
supplies with which you do your work? Are you only working
for him and no others? If the answer to all of these is
"yes", he should treat you as an employee and take out the
appropriate taxes from your pay.

Wayne Brasch, CPA, M. S. Taxation

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- quote -

If you are properly classified, you are an independent
contractor in business for yourself. You'll be reporting
your income and expense on Schedule C (Form 1040) "Profit or
Loss from Business". In addition to tax on your net
profits, you'll be obliged to pay your own self-employment
taxes. You may also be obligated to pay state and local
taxes. You should check with your local government to
determine if there are any license or zoning issues
applicable to your business.

"The income you earn as an independent contractor generally
will be considered income from self-employment and you will
need to file Form 1040, Schedule C (PDF), Profit or Loss
from Business (Sole Proprietorship), or you may qualify to
use Form 1040, Schedule C-EZ (PDF), Net Profit from
Business. You will also need to use Form 1040, Schedule SE
(PDF), Self-Employment Tax, if you had net earnings from
self-employment of $400 or more. Since there is no
withholding on your self-employment income, you may need to
make quarterly estimated tax payments. This is done using a
Form 1040-ES (PDF), Estimated Tax for Individuals.

References:

Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship)

Form 1040, Schedule C-EZ (PDF), Net Profit from Business
Instructions for Form 1040, Schedule C
Form 1040, Schedule SE (PDF), Self-Employment Tax
Tax Information for Business
Form 1040-ES (PDF), Estimated Tax for Individuals
Publication 1779 (PDF), Employee Independent Contract Brochure
Publication 533, Self Employment Tax
Publication 505, Tax Withholding and Estimated Tax
Publication 334, Tax Guide for Small Business

Hope this helps 'n' Good Luck!!=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I recently started a new job with a man that has his own
business. I get paid bi-weekly but there are no withholdings
taken from it. I receive no benefits and there was no
paperwork involved with my "employment". Am I an employee,
self employed, or independent contractor? How do I determine
the amount of taxes I owe and what form should I use for
filing.

I will receive a W-2 from my previous employer...this I know
how to file.

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