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IRS HAS DETERMINED I WAS MISCLASSIFIED AS 1099 CONTRACTOR AFTER SS-8 FORM SUBMISSION

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MzClassified

New member
Employer Location: California
My Location: Wisconsin

Hello everyone - hoping to get some advice on what next steps I should take.

October 2019 - January 2020 I accepted a position did work for a company based in San Francisco. I was hired as a 1099 Contract worker and worked "remote" from Wisconsin. There were actually several of us who were employed this way (4 or 5 maybe?).

In December 2019, the company started putting ads up for the same position and responsibilities, but as an in-person employee at their San Francisco offices.

In January 2020, I was let go by the company stating my services were no longer needed. Due to job postings prior to being let go, I did some research regarding the "ABC" tests, which I then requested the employer double-check their classification of me as a 1099 contractor. In response, their attorney sent me a long email that basically said they disagree and "remain firm" that I was correctly classified as a contractor.

After receiving this email from them and still not agreeing with their decision, I submitted an SS-8 form to the IRS with supporting documentation requesting a review and determination.

Today I received a phone call from the IRS requesting some documentation for the 2020 portion, and in speaking with the agent it was determined that I indeed was misclassified by the employer and that I will be receiving written notice of this soon (2020 will be the same, I just needed to submit an additional document for their file for them to make that determination).

Obviously being originally classified as a contractor, I was unable to receive any type of unemployment benefits, including the additional COVID relief unemployment supplemental payments. And obviously with the timing of it all, attempting to find work was very difficult as me being let go was only a week or two prior to COVID exploding across the nation and everything going into lockdown / stay at home orders. I don't necessarily care about the taxes that I solely paid or any paid breaks or anything like that, but I will say that if there was any possibility of getting some of the unemployment benefits, that would be a nice little surprise.

So at this point, I have an SS-8 response coming from the IRS that confirms my belief that I was misclassified and I guess I am just kind of looking for advice on what my next steps should be? Should I just consider it a lesson learned and just be glad that I was right? Should I contact the employer once received? Should I contact an employment attorney in California?

Thoughts? Opinions? Advice?

Thank you for your time reading this!
 


Zigner

Senior Member, Non-Attorney
Start with an employment attorney in your state. It might be nice to have a chat.
 

PayrollHRGuy

Senior Member
Once you have the misclassification letter from the IRS in your hand it will be time to visit your local UI office.
 

adjusterjack

Senior Member
So at this point, I have an SS-8 response coming from the IRS that confirms my belief that I was misclassified and I guess I am just kind of looking for advice on what my next steps should be? Should I just consider it a lesson learned and just be glad that I was right? Should I contact the employer once received? Should I contact an employment attorney in California?
Never hurts to consult an attorney. Brief consults are typically free and you can review your options.

Meantime, you can report the misclassification to the CA Dept of Industrial Relation.

California Department of Industrial Relations - DIR Fraud Prevention
 

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