When working as an employee but being classified by your employer as an independent contractor, you may face unexpected liabilities for unpaid Social Security and Medicare taxes. This common workplace issue can leave workers vulnerable to financial risks they shouldn't bear.
The Solution: Form 8919
The IRS provides Form 8919 specifically for employees in this situation. This crucial document allows you to:
- Calculate and report unpaid Social Security and Medicare taxes
- Properly document your employment status
- Protect your future benefits and financial security
These taxes should have been paid by your employer, but due to the misclassification, you may need to address them personally through this form.
How to Use Form 8919
To complete this form correctly:
- Verify your employment classification status
- Gather documentation of your work relationship
- Calculate the appropriate tax amounts
- Submit with your annual tax return
While this process may temporarily increase your tax burden, it prevents more severe financial consequences from unpaid taxes in the future.
Why Timely Action Matters
Submitting Form 8919 promptly provides critical protections:
- Maintains your eligibility for Social Security benefits
- Prevents IRS penalties for unpaid employment taxes
- Documents your challenge to the misclassification
- Creates an official record of your employment status
Workers who have experienced misclassification should understand these rights and procedures to protect their financial interests and ensure compliance with tax laws.