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.
In an April 3, 2018, Press Release issued by the Wisconsin Department of Workforce Development, Secretary Ray Allen announced that “due to the department’s efforts to combat the misclassification of workers in Wisconsin …, the state netted $1.4 million in unpaid Unemployment Insurance (UI) taxes, interest and associated penalties.” The Press Release goes on to state that “Employers who misclassify workers as independent contractors unfairly avoid UI tax and other tax obligations.”
The Harmonization of Coverage Act, H.R. 3825, would bring much needed clarity to the definition of the term “employee,” and increase opportunities for independent entrepreneurs.
The Coalition submitted comments in response to a proposed rule published by the U.S. Department of Labor that would affect section 3(5) of the Employee Retirement Income Security Act (“ERISA”). The Coalition is supportive of the proposed rule as it would create a new health plan option for independent contractors by expanding access to association health plans.
In a memorandum to all Regional Directors, Officers-in-Charge and Resident Officers, new National Labor Relations Board (“NLRB”) General Counsel, Peter B. Robb, reversed many Obama-era initiatives, including an initiative to argue that worker misclassification violates Section 8(a)(1) of the National Labor Relations Act (“NLRA”).