| |
You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Employee or independent contractor?
Expert: Helen P. O`Planick, EA
Date: 10/1/2008
Subject: Employee or independent contractor?
Question
I have been working for a company most of this year as an
independent contractor, but I believe that for tax purposes
I should be considered an employee and therefore not be
subject to self-employment tax. My work is directed by the
company, I was trained by employees of the firm, they
provide all the equipment I need, they give me the work to
do each day, I am paid hourly, 3 employees do the same
tasks at times, and the contract requires me to notify the
company of potential "conflicts" in any other agreement
before I can enter into that agreement. The contract says
I'm a consultant and I provide invoices of time worked
rather than timesheets. First, is the IRS likely to
consider that self-employment?
Second, if that is not self-employment, I need to know how
to proceed. Should I plan on paying the self-employment tax
when I file my return in April and attempt to get it back
after the IRS makes its decision on my SS-8? Or should I
file the SS-8, not pay the self-employment tax, and wait
for the decision? Also, would I still owe some of the self-
employment tax, even if I was misclassified?
Answer
It looks like you should definitely be an employee. File the SS-8 with your return and send one to the IRS as per the instructions. Then use the form that will allow you to send in 1/2 the SE taxes (form 8919) and let the IRS work it out.
Helen, EA in PA
Add to this Answer
Ask a Question
|
|
