SS taxes on independent contractor vs employee

[goddessoflubboc]

What is the name of your state (only U.S. law)?TX

I recently realized after perusing the IRS website about another matter that my husband is really an employee of his company, not an independent contractor.

I have been paying the taxes quarterly - including for SS which is much higher if you are considered self-employed.

If my husband files an SS8 and the IRS also finds he is an employee, would we get reimbursed the last year's worth of "overpayments" on our taxes? (Notably those for SS).

Is the information regarding who sent in the SS-8 kept confidential from the employer? I'm concerned of course he might fire him if he finds out.

I believe the reason the employer does this is he hires a lot of illegals (which I know because they are always shorthanded due to deportations).

Thanks for any help.

 

[LdiJ]

What is the name of your state (only U.S. law)?TX

I recently realized after perusing the IRS website about another matter that my husband is really an employee of his company, not an independent contractor.

I have been paying the taxes quarterly - including for SS which is much higher if you are considered self-employed.

If my husband files an SS8 and the IRS also finds he is an employee, would we get reimbursed the last year's worth of "overpayments" on our taxes? (Notably those for SS).

Is the information regarding who sent in the SS-8 kept confidential from the employer? I'm concerned of course he might fire him if he finds out.

I believe the reason the employer does this is he hires a lot of illegals (which I know because they are always shorthanded due to deportations).

Thanks for any help.

If the IRS were to agree that he was an employee, you could amend up to three years worth of tax returns to file 8919 to get a refund of the excess tax paid.

However, the employer will know that it was your husband, and yes, he may very well get fired. However, if no one ever reports him, he will keep doing this to people.

 

[goddessoflubboc]

Thank you for the quick and very helpful reply.

I am concerned as much for the other guys on the job as I am for us. I pay the SS tax, as I am now on SSDI and ever so grateful my mother convinced me to pay mine when I was a legitimate independent contractor. I am sure these guys aren't paying theirs, which puts them and their families at risk if they become disabled.

I suppose we will just have to take the chance and file.


Thanks again.