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House Bill Proposes Increasing Penalties for Misclassifying Employees as Independent Contractors

On July 30, 2009, Representative Jim McDermott (D-Wa.) introduced the Taxpayer Responsibility, Accountability, and Consistency Act of 2009 (H.R. 3408).  The legislation would make it more difficult for employers to avoid employment tax liability if they have misclassified a worker as an independent contractor and significantly increase employer penalties in the event of the misclassification.


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