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 California, 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 referred 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gig Is Up Act’’. 

5 SEC. 2. PAYROLL TAX WITHHOLDING FOR CERTAIN INDE6 PENDENT CONTRACTORS. 

7 (a) IN GENERAL.—Subchapter C of chapter 21 of the 

8 Internal Revenue Code of 1986 is amended by redesigVerDate Sep 11 2014 03:52 Dec 17, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5419.IH H5419

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1 nating section 3128 as section 3129 and by inserting after 

2 section 3127 the following new section: 

3 ‘‘SEC. 3128. TREATMENT OF CERTAIN LARGE EMPLOYERS. 

4 ‘‘(a) IN GENERAL.—In the case of a person who has 

5 at least $100,000,000 in gross receipts for a calendar 

6 year, and with whom at least 10,000 individuals contract 

7 to provide services other than as an employee during the 

8 calendar year— 

9 ‘‘(1) any remuneration paid by such person to 

10 any such individual with respect to such services 

11 (and any payment made by such person to any such 

12 individual in settlement of a transaction for the pro13 vision of such services) shall be treated in the same 

14 manner as wages with respect to employment of 

15 such individual for purposes of subchapter B and 

16 chapter 2, and 

17 ‘‘(2) section 3111 shall be applied — 

18 ‘‘(A) by substituting ‘12.4 percent’ for ‘6.2 

19 percent’ in subsection (a) thereof, and 

20 ‘‘(B) by substituting ‘2.9 percent’ for ‘1.45 

21 percent’ in subsection (b) thereof. 

22 ‘‘(b) AGGREGATION RULES.—All persons treated as 

23 a single employer under subsections (a) and (b) of section 

24 52 shall be treated as a single employer for purposes of 

25 this section.’’. 


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1 (b) SELF-EMPLOYMENT EARNINGS FOR PURPOSES

2 OF SOCIAL SECURITY.—Section 211(a) of the Social Secu3 rity Act (42 U.S.C. 411) is amended by striking ‘‘and’’ 

4 at the end of paragraph (15), by striking the period at 

5 the end of paragraph (16) and inserting ‘‘; and’’, and by 

6 inserting after paragraph (16) the following new para7 graph: 

8 ‘‘(17) There shall be included amounts treated 

9 as wages under section 3128 and an amount equal 

to 1 10 ⁄2 of the tax imposed under section 3111 pursu11 ant to the substituted rates specified in subpara12 graphs (A) and (B) of section 3128(a)(2).’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

14 for subchapter C of chapter 21 of such Code is amended 

15 by striking the item relating to section 3128 and inserting 

16 the following new items: 

‘‘Sec. 3128. Treatment of certain large employers. 

‘‘Sec. 3129. Short title.’’. 

17 (d) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to remuneration and other pay19 ments made after December 31, 2019. 

Æ 


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