Gig Is Up Act

I 116TH CONGRESS 1ST SESSION H. R. 5419 To amend the Internal Revenue Code of 1986 to require payroll tax withholding on independent contractors of certain large businesses. IN THE HOUSE OF REPRESENTATIVES DECEMBER 12, 2019 Ms. HAALAND (for herself, Ms. JAYAPAL, Ms. SCHAKOWSKY, Ms. LEE of Cali- fornia, Ms. ESCOBAR, Mr. HUFFMAN, Ms. TLAIB, Ms. JACKSON LEE, Mr. GRIJALVA, Mr. NADLER, Ms. NORTON, Ms. PRESSLEY, Mrs. WATSON COLEMAN, and Mr. POCAN) introduced the following bill; which was re- ferred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to require payroll tax withholding on independent contractors of certain large businesses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Gig Is Up Act’’. 4 SEC. 2. PAYROLL TAX WITHHOLDING FOR CERTAIN INDE- 5 PENDENT CONTRACTORS. 6 (a) IN GENERAL.—Subchapter C of chapter 21 of the 7 Internal Revenue Code of 1986 is amended by redesig- 8 VerDate Sep 11 2014 03:52 Dec 17, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5419.IH H5419 kjohnson on DSK79L0C42 with BILLS 2 •HR 5419 IH nating section 3128 as section 3129 and by inserting after 1 section 3127 the following new section: 2 ‘‘SEC. 3128. TREATMENT OF CERTAIN LARGE EMPLOYERS. 3 ‘‘(a) IN GENERAL.—In the case of a person who has 4 at least $100,000,000 in gross receipts for a calendar 5 year, and with whom at least 10,000 individuals contract 6 to provide services other than as an employee during the 7 calendar year— 8 ‘‘(1) any remuneration paid by such person to 9 any such individual with respect to such services 10 (and any payment made by such person to any such 11 individual in settlement of a transaction for the pro- 12 vision of such services) shall be treated in the same 13 manner as wages with respect to employment of 14 such individual for purposes of subchapter B and 15 chapter 2, and 16 ‘‘(2) section 3111 shall be applied — 17 ‘‘(A) by substituting ‘12.4 percent’ for ‘6.2 18 percent’ in subsection (a) thereof, and 19 ‘‘(B) by substituting ‘2.9 percent’ for ‘1.45 20 percent’ in subsection (b) thereof. 21 ‘‘(b) AGGREGATION RULES.—All persons treated as 22 a single employer under subsections (a) and (b) of section 23 52 shall be treated as a single employer for purposes of 24 this section.’’. 25 VerDate Sep 11 2014 03:52 Dec 17, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5419.IH H5419 kjohnson on DSK79L0C42 with BILLS 3 •HR 5419 IH (b) SELF-EMPLOYMENT EARNINGS FOR PURPOSES 1 OF SOCIAL SECURITY.—Section 211(a) of the Social Secu- 2 rity Act (42 U.S.C. 411) is amended by striking ‘‘and’’ 3 at the end of paragraph (15), by striking the period at 4 the end of paragraph (16) and inserting ‘‘; and’’, and by 5 inserting after paragraph (16) the following new para- 6 graph: 7 ‘‘(17) There shall be included amounts treated 8 as wages under section 3128 and an amount equal 9 to 1⁄2 of the tax imposed under section 3111 pursu- 10 ant to the substituted rates specified in subpara- 11 graphs (A) and (B) of section 3128(a)(2).’’. 12 (c) CLERICAL AMENDMENT.—The table of sections 13 for subchapter C of chapter 21 of such Code is amended 14 by striking the item relating to section 3128 and inserting 15 the following new items: 16 ‘‘Sec. 3128. Treatment of certain large employers. ‘‘Sec. 3129. Short title.’’. (d) EFFECTIVE DATE.—The amendment made by 17 this section shall apply to remuneration and other pay- 18 ments made after December 31, 2019. 19 Æ VerDate Sep 11 2014 03:52 Dec 17, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H5419.IH H5419 kjohnson on DSK79L0C42 with BILLS