What is the primary purpose of Form SS-8?

The primary purpose of Form SS-8 revolves around determining the worker status for tax purposes. This form is specifically utilized to request a formal IRS determination regarding whether a worker is classified as an independent contractor or an employee. Misclassification can have significant implications for both workers and employers in terms of tax liability and compliance with labor laws. By filing Form SS-8, the individual or entity seeking clarification can receive an official ruling which assists in ensuring proper tax withholding and employer contributions are applied correctly.

In contrast, the other options address different situations. For instance, applying for a Social Security card is not related to the determination of worker status but rather is about obtaining identification for individuals in the social security system. An Employer Identification Number (EIN) application serves as a way for businesses to obtain a federal tax identification number, also distinct from worker classification. Lastly, avoiding backup withholding pertains to ensuring that the correct tax information is reported to the IRS, which is a different concern than the fundamental aim of determining how a worker should be classified in terms of employment status.