Form 8919 Helps You Patch Up Social Security and Medicare PaymentsPublished:
What is Form 8919?
Form 8919 is a form issued by the Internal Revenue Service (IRS) to help individuals who were treated as independent contractors by their employers to figure and report their share of uncollected Social Security and Medicare taxes. The form is used when an employee has not had these taxes withheld from wages that were otherwise subject to withholding.
To complete Form 8919, taxpayers must input information related to the social security tax rate, social security wages, social security tips, and other forms such as W-2s and 1099-MISCs. Additionally, they must accurately distinguish between employee status and contract worker status. Reporting uncollected Social Security and Medicare taxes can be a big deal.
Once this form is completed and submitted along with any additional forms required for their particular situation, taxpayers can use it to patch up any uncollected Social Security or Medicare payments due on compensation earned during the tax year.
Were you an “employee”? The qualifications for Form 8919
A worker is generally considered an employee if they are under the control of their employer in terms of how, when and where they work. This means that the employer has the right to dictate what tasks are performed, when and how those tasks are to be completed, and the location in which they should be done. A worker may also be classified as an employee if the employer provides them with tools or other equipment necessary for completing their job duties. Additionally, a worker who has a contract with an employer but does not have autonomy over their own workload may still be considered an employee. Ultimately, it’s up to employers to accurately classify workers as employees or independent contractors based on IRS regulations.
The IRS has provided several Reason Codes for taxpayers to use when completing Form 8919.
Reason Code A is used when a taxpayer has filed an IRS Form SS-8 and received a determination letter from the IRS stating their status as an employee. This code is important, as it helps the taxpayer patch up any uncollected Social Security or Medicare payments. It also serves to protect employers from paying too much in taxes related to misclassification of employees and independent contractors. Employers should accurately classify workers in order to ensure that all taxes are paid correctly and that employees receive the benefits they are entitled to under federal law.
Form 8919 vs Form 4137
Form 8919 and Form 4137 both deal with Social Security and Medicare taxes, but they serve different purposes and are designed for different types of taxpayers. Form 8919 is used by misclassified workers to input their social security number, wages, tax rate, and other information in order to patch up any uncollected social security or Medicare payments. This form also helps taxpayers determine their status as an employee or independent contractor should there be any confusion. Form 4137 is for Social Security and Medicare tax owed on unreported tips. In order to receive determination from the IRS regarding employee status, taxpayers must file IRS Form SS-8 before filling out Form 8919. It’s important for employers to accurately classify workers in order to ensure that all necessary taxes are paid correctly.