Occasionally, workers who should be classified as W-2 employees are mistakenly categorized as 1099 independent contractors. When this happens, there is recourse available for the workers. Learn more about how to handle this situation in this guide.

The IRS has a form that is to be used by certain employees who have been misclassified as independent contractors by their employer. Form 8919 – Uncollected Social Security and Medicare Tax on Wages – is used to pay an employee’s half of the Social Security and Medicare taxes when one of the following reasons applies.

Form 8919 - Reason for Filing Codes (2021 version) – One must be designated when filing the form.

Code A. I filed Form SS-8 and received a determination letter stating that I am an employee of this firm.

Code C. I received other correspondence from the IRS that states I am an employee.

Code G. I filed Form SS-8 with the IRS and have not received a reply.

Code H. I received a Form W-2 and a Form 1099-MISC and/or Form 1099-NEC from this firm [for the same tax year]. The amount on Form 1099-MISC and/or Form 1099-NEC should have been included as wages on Form W-2.

If none of the reason codes apply, but the worker believes he or she should have been treated as an employee, the form instructs that reason code G is to be indicated and the worker should file Form SS-8 on or before the date the return is filed. The SS-8 must be filed separately and not attached to the 1040. If code H is used, do not file an SS-8.

If reason code G is used, the employee or the firm that paid the employee may be contacted for additional information. Use of this reason code is not a guarantee that the IRS will agree with the worker’s opinion as to his/her status. If the IRS does not agree that the worker is an employee, the worker may be billed for the additional tax, penalties, and interest resulting from the change to the worker’s status.

Does the 8919 Mean Troubles for Employers? Employer information is also required on the form including the employer’s firm name, federal ID number, associated “reason” code from the list above, date IRS determination or correspondence was received, whether a 1099-MISC and/or Form 1099-NEC was issued, and the dollar amount of the wages received without SS or Medicare tax withholding.