Are US Poll Workers considered Self employed for Social Security purposes?

[TAXBK613]

One of my retired clients, received a 1099 Misc for being a US Poll Worker. It didn't seem
fair the Govt hit him with a 1099 MISC, instaed of a W2? Am I correct in assuming, that he is now self employed & subject to SE, or is there a special case for this situation, (which I can no
find yet)?

[erchess]

My understanding

is that in order to be subject to S/E tax the activity would need to be carried on more often than twice every other year or so. I'd put poll worker pay on Line 21 of 1040 and look to tick a box or not tick a box so that it isn't subject to S/E tax.

Anyone care to disagree? I have no cite and this has never come up in my work so I'm coming off the top of my head here.

[JohnH]

It depends:

"Election Workers: Election workers are common-law employees; however, under IRC 3121b)(7)(F)(iv) an exception from FICA is provided for election officials and workers who earn less than a specified amount for a calendar year ($1,500 for 2011). This provision applies to employing entities that do not have a Section 218 Agreement. If the employing entity has a Section 218 Agreement, the Agreement determines the treatment of election worker wages for social security tax. It may exclude election workers altogether from social security; it may specify a lower threshold at which social security tax is withheld; or it may provide no exclusion for election workers, in which case social security and Medicare taxes apply from the first dollar paid."

Here's the link:

http://www.irs.gov/govt/fslg/article/0,,id=110344,00.html

[erchess]

TY John

Now how does the poor beleaguered tax professional determine whether his client is covered by the general rule or an agreement and if an agreement, what its terms are?

[Gary2]

Now how does the poor beleaguered tax professional determine whether his client is covered by the general rule or an agreement and if an agreement, what its terms are?

If you follow the link that JohnH posted, you'll find a reference to Pub. 963 at the bottom for more info about section 218 agreements. As it happens, that link on the IRS site is broken, but it's easy enough to go through their regular publications link to find Pub. 963.

Independently of the FICA question, it would appear that election workers are considered employees, which suggest to me that they should be paid on a W-2, even if the earnings aren't subject to Social Security tax.

[OtisMozzetti]

I have worked as an election official for the past 15 years. In this neck of the woods, the election clerks, election judges, and election inspectors who comprise the on-site staff for any given polling place don't get any IRS report about their pay. I always put my pay down on line 21, not subject to self-employment tax. However, some election workers have told me that they believe they don't have to report election pay on their tax returns.

Some of the election workers are only there for the money, and the quality of their skills and behavior do not come up to even the meager pay. Many others are worth much more than the standard pay which they all receive.

In this area, the election workers have to work 15+ hours from 6 a.m. to sometime after 9 p.m. with maybe 2 hours of break time and with no chance of "overtime" pay. Election workers are rigidly controlled by detailed instructions about what to do and what not to do.