A recent decision by the Supreme Court of California – adopting a difficult-to-satisfy statutory “ABC” test to determine an individual’s status, as an employee or independent contractor, for purposes of certain “wage orders” issued by California’s Industrial Welfare Commission – demonstrates an urgent need for harmonizing the definition of “employee” for purposes of federal and state laws.
A Coalition letter with 22 signers was submitted today urging relevant House Committee and Subcommittee Chairmen and Ranking Members to support and swiftly consider H.R. 3825, the Harmonization of Coverage Act of 2017. The bill would harmonize the definition of the term “employee” for purposes of federal statutes by amending the Fair Labor Standards Act to adopt a “common law” test for defining the term.
The Coalition submitted a Statement for the Record concerning an April 28, 2018, hearing before the U.S. Senate Finance Committee on “Early Impressions of the New Tax Law.”
A six-month grace period during which Pennsylvania’s Department of Revenue (the “Department”) indicated it would not assess taxpayers for failing to comply with a new tax-withholding and reporting requirement that became effective January 1, 2018, will soon end (i.e., on the last day of June 2018).
The Tax Cuts and Jobs Act created a new tax deduction – of up to 20% – for pass-through entities, which include certain independent contractors. The provision, codified as new Internal Revenue Code section 199A, applies for tax years beginning after December 31, 2017, but before January 1, 2026.