Interesting bit of news for contractors. Included as part of so called tax reform is the New Gig Act and has been introduced in both houses of Congress. It's provisions includes language that affords a worker all the so called "freedoms" and "privileges" of an independent contractor but at the same time makes them subject to the same tax withholding as you currently find with an employer/employee relationship. In the past so called "independent contractors " would be hired paid either in cash under the table or flipped a 1099 which in many cases the "contractor" would simply ignore and never pay the taxes owed.
The intent is clear. Curb the abuse of so called "independent contractors" , faster and easier tax collection with better compliance . With the users of contractors having to withhold taxes and with the rights of those contractors more clearly defined the objective is quire clear and that is to force employers to hire people under the guise of what they really are....employees. Let's see Fat Freddy try to BS his way out of this one.
The intent is clear. Curb the abuse of so called "independent contractors" , faster and easier tax collection with better compliance . With the users of contractors having to withhold taxes and with the rights of those contractors more clearly defined the objective is quire clear and that is to force employers to hire people under the guise of what they really are....employees. Let's see Fat Freddy try to BS his way out of this one.