Confused about whether you are an independent contractor (IC), a statutory employee (SE), or an employee? Wondering whether you have classified the MTs working for you properly? Trying to interpret IRS rules on IC versus employee status can be confusing, and, if done incorrectly can result in penalties and back taxes for both the MT and/or the employer. The IRS has simplified the process to receive a definitive ruling on your status that anyone can take advantage of. IRS Form SS-8, Determination of Worker Status for the Purpose of Federal Employment Taxes and Income Tax Withholding. This form can be utilized to clarify your individual tax determination and is available at: http://www.irs.gov/pub/irs-pdf/fss8.pdf

Additional information regarding this issue can be found at the following links:

*Prior IRS case rulings regarding status:
http://www.taxlinks.com/rulings/1964/revrul64-280.htm
http://www.taxlinks.com/rulings/1970/revrul70-340.htm
*IRS instructional documents:
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html -- Independent contractors versus employee
*IRS training manual for determining IC versus employee -- 160 pages PDF file
http://www.irs.gov/pub/irs-utl/emporind.pdf
*Publication 15-A.
http://www.irs.gov/publications/p15a/ar02.html#d0e298
NOLO Law for ALL
Working as an independent contractor
Hiring independent contractors
http://www.nolo.com/lawcenter/ency/index.cfm/catID/EC0EEB1C-16EA-4F81-833ED5890B19383A
*DOL Court case and judgment against IC classification in Missouri