Table of Contents Cover Page Introduction Part I Clarifying the Confusion Surrounding Section 530 of the Revenue Act of 1978 Part II Current Requirements of Section 530 Provide Adequate Protection against Potentially Abusive Application of the Provision Part III Independent Contractors Who Receive Forms 1099 are Not a Material Cause of the Tax Gap Part IV Unappreciated Plight of Lower-Skilled… Read more →
PRESENT LAW AND BACKGROUND RELATING TO WORKER CLASSIFICATION FOR FEDERAL TAX PURPOSES Scheduled for a Public Hearing before the SUBCOMMITTEE ON SELECT REVENUE MEASURES and the SUBCOMMITTEE ON INCOME SECURITY AND FAMILY SUPPORT of the HOUSE COMMITTEE ON WAYS AND MEANS on May 8, 2007 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION Download full text here.
A bill currently before the Wisconsin state legislature, SB 80, would impose unnecessary new burdens on direct-sales-based businesses in that state. It would require these companies to:Â treat traveling sales people as employees rather than as independent contractors provide additional information to the state on its owners, sales activities and vehicles, post a $10,000 bond, and tell potential workers in… Read more →
A law passed in Delaware in January requires all businesses, including Independent Contractors and Sole Proprietors, to cover all employees with workers’-compensation insurance, even if they are a one-person operation. The legislation, Senate Bill 1, was designed to tackle Delaware’s notoriously high workers compensation premiums. However, rather address the root causes of high premiums in Delaware, which most commonly involve… Read more →
In the latest development in the FedEx Ground class action suit, lawyers for the plaintiffs attempted to persuade a federal judge to certify as class actions both federal and state-level lawsuits that allege the misclassification of FedEx drivers as independent contractors rather than employees. However, there is reason to doubt the allegations of misclassification – the FedEx drivers maintain a number… Read more →