Chasing the Independent Contractor

             Round and round we go. Is the worker an employee or an independent contractor? IRS chasing employers, employers dodging IRS. Everyone is doing it or so it seems. But helping to sort out the rules is always welcome, so a recent Senate proposal on worker classification may bear fruit. The law, if passed, would create a safe harbor (we lawyers love that). It would be based on three criteria: the relationship between the respective parties, the existence of a written contract and the location of the services or the means by which the services are provided. You may know that companies like Uber are being characterized as the “gig” economy. Creating “freelance” relationships with what perhaps could be called employees is now the rage. In the old days a worker who described himself as "freelance" meant they were unemployed. As the situation gets more out of hand because of this gig economy legislation in this area is more likely. Included in the proposal will be necessary changes to the form 1099 reporting rules. Passage seems on track and is real.