Employee or Independent Contractor?

Registry Aims to End Confusion About Independent Contractor Status In Pennsylvania

 

Pennsylvania

From WorkCompCentral, William Rabb reports on a bill filed by Pennsylvania General Assembly Representative Fred Keller.  Representative Keller’s bill, HB 1781, would allow an individual who is classified as an independent contractor for federal income tax purposes to register with the Department of Labor and Industry.

Source: Registry Aims to End Confusion About Independent Contractor Status| Workers Compensation News | WorkCompCentral

The registration would include:

(1)  a waiver by the individual of workers compensation benefits;

(2) an affidavit stating:

(i) the individual is not an employee;

(ii) the individual is not entitled to workers compensation benefits;

(iii) the individual may purchase workers’ compensation coverage.

See HB 1781.

Representative Keller’s bill appears to help reduce the confusion about who is an independent contractor for workers compensation benefits, but it doesn’t address other areas in which a worker might be misclassified, for example, for labor law purposes or state income tax law purposes.  The bill, as drafted, allows someone who is classified as an independent contractor for federal income tax purposes to register with the Department of Labor and Industry. However, it is not always clear when someone is classified as an independent contractor for federal income tax purposes. There can be disagreements under federal income tax law whether someone is an independent contractor or not. While Representative Keller’s bill might make a step forward to help classification issues with respect to workers compensation, there will remain other areas where misclassification risks continue.

 

 

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