If you have a contract candidate who has always been classified as a 1099 Independent Contractor, you may receive a little pushback from that candidate if you try to classify him/her as a W-2 Employee. You can try educating the worker on the tax implications of being misclassified (they may have to amend tax returns and even pay penalties) and the benefits of being a W-2 Employee, but what do you do if they still balk?
Let the IRS settle the argument! The candidate can complete IRS Form SS-8, which you can then submit to the IRS for review. After considering the facts and circumstances, they will determine the worker’s status.
As previously mentioned in this blog, the IRS is cracking down on the misclassification of workers, so don’t let a contract candidate bully you into misclassifying them as an Independent Contractor. After all, it is your business and reputation on the line!
