McGuireWoods reports that a legislation has been introduced in Senate to amend the Fair Labor Standards Act (FLSA) and Social Security Act. The goal of the legislation is to penalize the employers who classify their employees as independent contractors. The sponsors of the legislation site two principal factors for bringing up this issue:
-Protecting workers wrongly denied Social Security, unemployment and workers' compensation benefits, as well as other workplace protections, by improperly being classified as independent contractors; and
-Increasing tax revenue by requiring employers to withhold payroll taxes from individuals who have heretofore been improperly classified as independent contractors.
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Posted by Mariya Link Associate Editor, Wealth Strategies Journal.
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