What is IRS Form 8973?
The IRS Form 8973 is for CPEOs to notify the IRS that a service contract between a CPEO and a customer has started or ended. It also identifies the forms that a CPEO will file on its customers’ behalf to report wages or compensation that are processed through the CPEO.
What are the benefits of the CPEO status?
Justworks obtained CPEO certification from the IRS in 2017. One of the primary benefits of Justworks’ CPEO status is that Justworks has sole statutory liability for federal payroll taxes on wages that are processed on our platform, as opposed to being jointly liable with the customer. To benefit from Justworks’ CPEO status and avoid joint liability for federal payroll taxes, you will need to sign IRS Form 8973.
The IRS requires that the Form 8973 be hand-signed in ink.
Why do I need to complete Form 8973?
To benefit from Justworks’ CPEO status and avoid joint liability for federal payroll taxes, you will need to sign Form 8973.
How do I complete Form 8973?
You will need to fill out the information related to your company in Part 2 of the form lines 1-4 (fill out line 3 only if applicable). All of the information should match what you have in company settings in your Justworks account.
You will also need to complete Part 5. Note that the IRS requires a handwritten signature for Form 8973. Therefore, you will need to print the form, hand-sign it in ink, scan it, and upload the complete form to Justworks. We will review your form and reach out if we have any questions. Otherwise, you should be all set.
Why does the signature have to be hand-signed? Can I use an e-signature?
The IRS requires the form to be hand-signed in ink, as stated on their FAQ page. An e-signature is not accepted.
If I don’t have a scanner, what should I do? Is a photo acceptable?
A photo is not acceptable. If you don’t have a physical scanner, you may want to use a scanner app, which will handle text recognition, clip the image, and convert the image into a PDF. You can find scanner app options that have been reviewed and recommended on resources such as this article.
If you’d like to fax us your completed form, please contact our 24/7 Customer Success team.
If I don’t have a printer, what should I do?
If you do not have a printer, our recommendation is to visit a local office supply store that often has printing solutions. If that’s not possible, let us know and we’ll find a solution.
What do I need to do after I upload my form?
We will reach out if there is an issue or question with the form you have submitted. We’ll let you know if there’s additional action required, such as making corrections or reuploading the form due to an issue with the PDF.
- Make sure all fields required of you are completed.
- Make sure the form is filled out with information that matches the information in your company settings in Justworks.
- Use a scanner or scanning app and make sure the file is a PDF. The PDF should be clear and legible.
Why would my form not be accepted by Justworks or the IRS?
Justworks will review the form you submit before it is sent to the IRS. A form may not be accepted for the following reasons:
- The image provided is a photo, or not a scanned PDF file
- The image is illegible or not clear enough
- One or more required fields are incomplete
- One or more required fields are filled out incorrectly
- Signature is not hand-signed in ink
- The information provided does not match information we have on file