CWS 3.0: December 19, 2012

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New IC Bill Relatively “Limited”

A new bill to simplify the procedure for determining whether a worker is an independent contractor appears to have a very narrow focus. The Independent Contractor Compliance Blog reports the bill appears focused on a limited segment of independent contractors such as truckers and messenger services.

The blog says the bill also doesn’t address whether a worker is considered an independent contractor under the Fair Labor Standards Act.

The bill, “The Independent Contractor Tax Fairness and Simplification Act of 2012,” was introduced Dec. 12 by Erik Paulsen, R-Minn. The legislation is now in the House Ways and Means Committee.

The Messenger Courier Association of America, an industry group, lauded the bill.

The bill has two goals, according to the MCAA:

  • Codify a safe harbor provision for classifying independent contractors by placing it into the Internal Revenue Code.
  • To create a two-part test to determine whether a person is an independent contractor: “(1) the individual either has an investment in equipment or is subject to income fluctuation, or (2) the individual has control of time worked and performance of services.”

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