IRS Form 8919 Explained
IRS Form 8919 Explained
TABLE OF CONTENTS
Key Takeaways:
- IRS Form 8819, Uncollected Social Security and Medicare Tax on Wages, is an official tax document used by employees who were treated like independent contractors by their employers to figure and report the uncollected FICA taxes due on their income.
- Taxpayers must file IRS Form 8919 if a firm paid them for services provided, the taxpayer believes that the work conducted for the organization was not in line with the services of an independent contractor, FICA taxes, including Social Security and Medicare taxes, were not withheld from your paychecks by the organization, and one of the Reason Codes listed on IRS Form 8819 is applicable to their situation.
- The four Reason Codes to specify why the taxpayer is filing IRS Form 8919 include Reason Codes A, C, G, and H.
What Is IRS Form 8919?
IRS Form 8819, Uncollected Social Security and Medicare Tax on Wages, is an official tax document used by employees who were treated like independent contractors by their employers to figure and report the uncollected FICA taxes due on their income.
Within this form, taxpayers must check any relevant box and include their name, taxpayer identification number, signature, and date.
Who Must File IRS Form 8919?
Taxpayers who meet all four of the following qualifications must file IRS Form 8919 to report their tax information to the IRS:
1. A firm paid them for services provided.
2. The taxpayer believes that the work conducted for the organization was not in line with the services of an independent contractor.
3. FICA taxes, including Social Security and Medicare taxes, were not withheld from your paychecks by the organization.
4. One of the Reason Codes listed on IRS Form 8819 is applicable to their situation.
Reason Codes
Taxpayers
Reason Code A:
The taxpayer filed IRS Form SS-8 and received a determination letter in the mail that stated their status as an employee of the firm.
Reason Code C:
The taxpayer received official correspondence or a notice from the IRS stating their status as an employee of the firm.
Reason Code G:
The taxpayer did not receive a response upon filing IRS Form SS-8 with the IRS.
Reason Code H:
The taxpayer is the recipient of an IRS Form W-2, an IRS Form 1099-MISC, and/or an IRS Form 1099-NEC from the company for the related tax year. The reportable amount on the 1099 form should have also been included as part of the pay on IRS Form W-2. If Reason Code H applies, Form SS-8 does not need to be filed.
Wage Employee Vs. Independent Contractor
Employees that are hired by businesses, companies, or organizations must abide by the regulations of their employer, including when and where they work, and the tasks of their job. While there is a lack of control if you work as an employee, employers will offer benefits to their employees, such as health insurance or retirement plans. Employers are responsible for ensuring there is tax withheld from the employee’s compensation.
An independent contractor, on the other hand, is a nonemployee usually hired for a set project or task and has more control over their work structure. Independent contractors are considered self-employed individuals, and they will be responsible for setting up their own insurance and retirement plans, as well as paying their required taxes.
Even if employers hire a worker as an independent contractor, if they exert too much control over the work parameters, the IRS may consider this taxpayer an employee under the law.
If you need tips about filling out tax forms, filing your federal income tax returns, navigating income tax withholding, or something in between, the experts at Ideal Tax are here to help you through the process. We offer free tax consultation.
Luis serves as the Director of Operations for Ideal Tax, overseeing a multifaceted team including case management, tax professionals, document specialists, customer support, training, and development.
