Request for Reconsideration

A company requested reconsideration of a decision which led to a request by the Internal Revenue Service that it pay the Social Security tax due on back wages paid to five of the company's employees. The company argued that since the five individuals were not its employees, but rather employees of subcontractors, it should not be liable for the employer's share of the tax. The contractor did not submit a statement and acknowledgement form, which is required to be submitted for all subcontractors. In addition, there were no written subcontracts, and neither of the alleged subcontractors indicated that they considered themselves to be subcontractors. Therefore, the employees of the alleged subcontractors were, in fact, employees of the contractor for wages tax purposes. Accordingly, the earlier decision was affirmed.