Congressman Tom Rice has introduced the New Economy Works to Guarantee Independence and Growth (NEW GIG) Act. The legislation would clarify provision in the tax code that classify workers as either independent contractors or employees. The bill would also alter the reporting thresholds for both Form 1099-K and Form 1099-MISC.
For third party network transactions, the payer would now report thresholds over $1000 on Form 1099-K. Currently, that threshold is $20,000. Additionally, the bill would update the reporting rules for Form 1099-MISC to require reporting of payments totaling $1,000 or more in a year, up from $600 under current law.
Senator John Thune introduced companion legislation in the Senate earlier this year.
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