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.
Status:
Expired
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