Page 1 of 3 1 2 3 LastLast
Results 1 to 10 of 28
  1. #1
    Join Date
    Jul 2019
    Posts
    4

    Default I Am Being Misclassified

    My question involves independent contractors in the state of: Ohio

    I am being misclassified as an independent contractor in the skincare industry. I am treated as an employee based on the owner telling me how to do treatments, what products to use to perform the treatments and my boss takking product costs & credit card transaction fees out of my pay. I have been paying my estimated tax payments however I feel as though I am being taken advantage of. What is the first step in legally being filed as a misclassified worker with the IRS? And can I do this anonymously as there are other employees being misclassified as well. Thank you.

  2. #2
    Join Date
    Oct 2016
    Posts
    3,285

    Default Re: I Am Being Misclassified

    Read this. https://www.irs.gov/newsroom/underst...or-designation

    Complete and submit this. https://www.irs.gov/forms-pubs/about-form-ss-8

    And it would be appreciated if you would keep all of your posts in one thread.

  3. #3
    Join Date
    Jul 2019
    Posts
    4

    Default Re: I Am Being Misclassified

    I will read the article and fill out the form. I figured my threads were two separate topics but I will keep that in mind. Thank you

  4. #4
    Join Date
    Oct 2014
    Posts
    7,425

    Default Re: I Am Being Misclassified

    Quote Quoting esthi123
    View Post
    What is the first step in legally being filed as a misclassified worker with the IRS? And can I do this anonymously as there are other employees being misclassified as well. Thank you.
    As the previous reply stated, Form SS-8 is the way to bring the issue to the attention of the IRS and seek reclassification. But that will not be guaranteed to be anonymous. The employer will typically be given a copy of some or all of the report and given an opportunity to respond to it. The instructions to the form tell you that "Some or all of the information provided on this Form SS-8 may be shared with the other parties listed on page 1." And of course, the employer is one of those parties.

  5. #5
    Join Date
    Nov 2013
    Posts
    6,449

    Default Re: I Am Being Misclassified

    It really breaks down that in a misclassification situation, it not the IRS test that make the difference. If the contractor/or misclassified employee is paying their self employment taxes then the IRS is less likely to get more involved than to say the contractor is misclassified. They are not likely to go after the employer.

    The real impact in being misclassified is when the state says you're misclassified for the purposes of collecting UE benefits and being covered by workman's compensation.

    Many states are adopting the ABC test to determine if a contractor is a misclassified employee. Ohio has 20 parameters to determine the status but they all fall within the ABC tests adopted by other states. They are A, who controls what you do. Are you free from supervision to complete your contracted tasks.

    B, where do you do it and who provides the means to do it. Is it being done in the companies facilities with company equipment or is it outside all of the companies holding. Is what you do the normal course of business that employees do or is it outside of the normal work of the employees.

    And C, would the termination of the contract put the contractor in the rolls of the unemployed or do they have a continuing business that survives the termination.

    If you want to report your company anonymously then you would have to drop the dime on them with the Department of Labor and the Workman's compensation Board.

    I would wouldn't waste my time with the IRS.

  6. #6
    Join Date
    Oct 2016
    Posts
    3,285

    Default Re: I Am Being Misclassified

    I don't know that I have ever heard of a state overriding an IRS decision that was originated from the filing of an SS-8.

  7. #7
    Join Date
    Nov 2013
    Posts
    6,449

    Default Re: I Am Being Misclassified

    The IRS deals with their regulations and what taxes have to be paid to them. They don't deal with UE and workman's comp issues. That is up to the states.

    Now you have heard it.

  8. #8
    Join Date
    Oct 2006
    Posts
    15,657

    Default Re: I Am Being Misclassified

    Quote Quoting budwad
    View Post
    It really breaks down that in a misclassification situation, it not the IRS test that make the difference. If the contractor/or misclassified employee is paying their self employment taxes then the IRS is less likely to get more involved than to say the contractor is misclassified. They are not likely to go after the employer.
    This is completely inaccurate. If the misclassified potential employee files an SS-8 the IRS WILL investigate.

    The real impact in being misclassified is when the state says you're misclassified for the purposes of collecting UE benefits and being covered by workman's compensation.
    Those are other factors involved in misclassification.

    Many states are adopting the ABC test to determine if a contractor is a misclassified employee. Ohio has 20 parameters to determine the status but they all fall within the ABC tests adopted by other states. They are A, who controls what you do. Are you free from supervision to complete your contracted tasks.

    B, where do you do it and who provides the means to do it. Is it being done in the companies facilities with company equipment or is it outside all of the companies holding. Is what you do the normal course of business that employees do or is it outside of the normal work of the employees.

    And C, would the termination of the contract put the contractor in the rolls of the unemployed or do they have a continuing business that survives the termination.

    If you want to report your company anonymously then you would have to drop the dime on them with the Department of Labor and the Workman's compensation Board.

    I would wouldn't waste my time with the IRS.
    State factors involved in misclassification are not the same as federal factors. Odds are that the two will be taken into consideration by both the state and the feds no one overrides the other.

    The bigger factor on the federal side is the employer share of Social Security and Medicare tax. That is a major factor.

  9. #9
    Join Date
    Oct 2014
    Posts
    7,425

    Default Re: I Am Being Misclassified

    Quote Quoting budwad
    View Post
    It really breaks down that in a misclassification situation, it not the IRS test that make the difference. If the contractor/or misclassified employee is paying their self employment taxes then the IRS is less likely to get more involved than to say the contractor is misclassified. They are not likely to go after the employer.
    On that, Bud, you are not correct. I used to work for the IRS and I can tell you from actual experience that the IRS will reclassify an employee if the requirements are met, regardless of whether the employee has been paying his/her taxes as a self-employed person previously. So I don't know where you got this idea, but having actually worked there and been involved in that process, it isn't accurate.

    I do agree, though, that the test under federal law that applies for tax determinations is different from what states use for other purposes like unemployment compensation, worker's comp, etc. While all the tests have some things in common, the details do vary a bit.

  10. #10
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    2,951

    Default Re: I Am Being Misclassified

    Quote Quoting Taxing Matters
    View Post
    On that, Bud, you are not correct. I used to work for the IRS and I can tell you from actual experience that the IRS will reclassify an employee if the requirements are met, regardless of whether the employee has been paying his/her taxes as a self-employed person previously. So I don't know where you got this idea, but having actually worked there and been involved in that process, it isn't accurate.

    I do agree, though, that the test under federal law that applies for tax determinations is different from what states use for other purposes like unemployment compensation, worker's comp, etc. While all the tests have some things in common, the details do vary a bit.
    like button

    1. Sponsored Links
       

Page 1 of 3 1 2 3 LastLast

Similar Threads

  1. Compensation and Overtime: Misclassified As an Exempt Employee - What Should I Do
    By SCFBall44 in forum Employment and Labor
    Replies: 7
    Last Post: 08-10-2013, 12:05 PM
  2. Classification of Workers: Who is the Employer of a Misclassified Worker
    By TechNation in forum Independent Contractors
    Replies: 1
    Last Post: 02-03-2013, 05:50 AM
  3. Am I Being Misclassified As a 1099
    By ConfusedInSc in forum Independent Contractors
    Replies: 4
    Last Post: 12-07-2009, 06:23 AM
  4. Misclassified As Independent Contractor: Now What
    By Moop74 in forum Independent Contractors
    Replies: 1
    Last Post: 10-19-2009, 05:31 PM
  5. Retaliation Protection if Misclassified
    By rnca in forum Independent Contractors
    Replies: 2
    Last Post: 08-08-2009, 11:19 AM
 
 
Sponsored Links

Legal Help, Information and Resources