What Is Form 8919, and When Do You Need to Use It?

 Introduction

Form 8919, Uncollected Social Security and Medicare Tax on Wages, is used by workers who were misclassified as independent contractors instead of employees.

Filing Form 8919 ensures that you pay only the employee share of Social Security and Medicare taxes, rather than the self-employment tax.

  Tax Code References for Form 8919

• IRC § 3121(d) – Defines employee status under IRS tax law.
• IRC § 3402 – Establishes requirements for federal tax withholding by employers.
• IRC § 3509 – Governs tax penalties for misclassified employees.
• IRC § 6205 – Provides for employer corrections of unpaid payroll taxes.

3. Relevant IRS Forms for Worker Classification Issues

• Form 8919 – Reports uncollected Social Security and Medicare tax on wages.
• Form SS-8 – Used to request an IRS determination of worker classification.
• Schedule SE (Form 1040) – Reports self-employment tax for independent contractors.
• Form W-2 – Issued by an employer to correctly classified employees.
• Form 1099-NEC – Issued to independent contractors instead of W-2 employees.

4. What Is IRS Form 8919?

• Form 8919 is used when an employer misclassifies a worker as an independent contractor, failing to withhold Social Security and Medicare taxes.
• If you should have been classified as an employee, Form 8919 allows you to:
• Pay only the employee’s share (7.65%) of Social Security and Medicare taxes, instead of the self-employment tax (15.3%).
• Avoid employer misclassification penalties.
• Report uncollected payroll taxes to the IRS without owing additional penalties.

  Step-by-Step Guide to Filing Form 8919

Step 1: Determine If You Were Misclassified as an Independent Contractor

• If you received a Form 1099-NEC instead of a W-2, but performed work under an employer’s control, you may qualify.
• Use Form SS-8 to request an IRS determination if unsure.

Step 2: Check for IRS Worker Classification Cases

• If the IRS has already determined your job should be classified as employee work, select the correct reason code on Form 8919.

Step 3: Complete Form 8919

• Line 1: Enter the employer’s name, EIN, and reason code.
• Line 2: Report the total unreported wages received.
• Line 3: Multiply wages by 6.2% (Social Security tax rate).
• Line 4: Multiply wages by 1.45% (Medicare tax rate).
• Line 5: Calculate total tax owed.

Step 4: Enter the Amount from Form 8919 on Form 1040

• Schedule 2 (Form 1040), Line 5 – Enter the total uncollected Social Security and Medicare tax.

Step 5: File Form 8919 with Your Tax Return

• Attach Form 8919 to your tax return and keep records for IRS verification.

  Example Scenarios for Using Form 8919

Example 1: Restaurant Worker Paid as an Independent Contractor

• Lisa worked as a server but was paid on a 1099-NEC instead of a W-2.
• Since she followed the employer’s work schedule and rules, she should have been classified as an employee.
• Lisa files Form 8919 to report unpaid Social Security and Medicare taxes.

Example 2: Freelancer Who Was Actually an Employee

• Mike worked as a graphic designer but was given a 1099-NEC instead of a W-2.
• His employer controlled his work schedule, provided equipment, and set deadlines.
• Mike files Form SS-8 to confirm his employment status and submits Form 8919 with his tax return.

Example 3: Delivery Driver Misclassified as a Contractor

• David worked as a delivery driver for a single company with set working hours.
• Since he was misclassified as an independent contractor, he files Form 8919 to pay only the employee’s share of payroll taxes.

  Common Mistakes to Avoid

• Not filing Form 8919 when misclassified – Workers overpay self-employment tax by not correcting misclassification.
• Failing to use the correct reason code – The IRS requires a valid reason code when filing Form 8919.
• Not submitting Form SS-8 if unsure – Filing Form SS-8 helps confirm employee status before reporting payroll taxes.

  IRS Compliance Requirements

• File Form 8919 with Form 1040 if misclassified as an independent contractor.
• Use the correct reason code based on IRS guidance.
• Keep records of employer communications regarding classification.
• Pay only the employee portion of Social Security and Medicare taxes.

  Conclusion

Form 8919 is essential for workers misclassified as independent contractors. Filing it ensures you pay the correct amount of Social Security and Medicare taxes instead of overpaying self-employment tax.

For expert tax assistance on worker classification and payroll tax compliance, consult Anshul Goyal, CPA EA FCA, a Certified Public Accountant and IRS compliance expert.

 FAQs

1. Who should file Form 8919?
Workers who were misclassified as independent contractors but were actually employees should file Form 8919.

2. What happens if I don’t file Form 8919?
You may be required to pay self-employment tax (15.3%) instead of just the employee share (7.65%), resulting in higher tax liability.

3. Can I file Form 8919 without an IRS determination?
Yes, but if you are unsure about your employment status, file Form SS-8 first to request an IRS decision.

4. What if my employer refuses to issue a W-2?
Use Form 8919 to report uncollected payroll taxes and file Form SS-8 to request an IRS classification ruling.

5. Do I need to pay self-employment tax if I file Form 8919?
No. Filing Form 8919 ensures that you only pay the employee share of Social Security and Medicare taxes (7.65%).

  About Our CPA

Anshul Goyal, CPA EA FCA, is a Certified Public Accountant and IRS compliance expert specializing in worker misclassification, payroll tax reporting, and IRS tax compliance.

For personalized tax assistance, schedule a consultation with Anshul Goyal, CPA EA FCA today.