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New Tax Rules for Large Businesses Using Independent Contractors

This act changes how independent contractors (gig workers) are taxed when working with large businesses. Starting in 2025, companies with over $100 million in annual revenue and at least 10,000 independent contractors will be required to withhold payroll taxes from their payments. This means independent contractors at these companies will have taxes deducted similarly to employees, and the companies will pay double the employer's share of payroll taxes.
Key points
Large businesses (revenue > $100M, > 10,000 contractors) must withhold payroll taxes from independent contractor payments.
Independent contractors at these companies will have Social Security and Medicare taxes withheld, similar to employees.
These businesses will pay double the employer's share of Social Security and Medicare taxes.
Changes take effect for payments made after December 31, 2024.
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Additional Information
Print number: 118_HR_8013
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2024-04-15
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Gig Is Up Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8013.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-04-15.

What are the main provisions?

Key points include:

  • Large businesses (revenue > $100M, > 10,000 contractors) must withhold payroll taxes from independent contractor payments.
  • Independent contractors at these companies will have Social Security and Medicare taxes withheld, similar to employees.
  • These businesses will pay double the employer's share of Social Security and Medicare taxes.
  • Changes take effect for payments made after December 31, 2024.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Watson Coleman, Bonnie [D-NJ-12].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Labor Economy