Bill seeks to change IRS code to better identify independent contractors

Bill seeks to change IRS code to better identify independent contractors

Rep. Erik Paulsen (R-MN) unveiled a Congressional bill yesterday –H.R.2483 – that seeks to amend the Internal Revenue Code of 1986 with a two-part test that formally define who is – and is not – an independent contractor. 

The bill also seeks to clarify “Safe Harbor” provisions of the tax code, which also helps define independent contractor status, Paulsen said in a statement. 

“Some in Washington want to make it more difficult for businesses to use independent contractors; it’s time to tell the employer side of the story,” he added. “That’s why I introduced this legislation, which provides clarity and guidance for employers so they know they are properly classifying independent contractors.”

Paulsen’s bill would provide a new section to the Internal Revenue Code, dubbed Section 3511, to assist businesses in making the proper classification. This section would ultimately assist businesses with compliance and proper classification of individuals as independent contractors, he said.

TAGS: Regulations
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