The Internal Revenue Service has issued a new tax form for employees who have been misclassified as independent contractors.
Form 8919, Uncollected Social Security and Medicare Tax on Wages, will now be used to calculate and report the employee's share of uncollected Social Security and Medicare taxes due on their compensation.
Form 8919 will apply for tax year 2007 to workers who performed services for an employer, but whose employer did not withhold the worker's share of Social Security and Medicare taxes. The worker must meet one of several criteria, including being designated a Section 530 employee by their employer or by the IRS prior to Jan. 1, 1997.
By using Form 8919, the worker's Social Security and Medicare taxes will be credited to their Social Security record. In the past, misclassified workers often used Form 4137 to report their share of Social Security and Medicare taxes. Misclassified workers should no longer use this form. Instead, Form 4137 should only be used now by tipped employees to report Social Security and Medicare taxes on allocated tips and tips not reported to their employers.
