Gig Is Up Act
Bill: H.R.5704 | Sponsor: Rep. Watson Coleman, Bonnie (D-NJ)
Policy area: Taxation

Summary:
Gig Is Up Act
This bill requires employers to withhold employer and employee portions of Social Security and Medicare taxes when they contract with at least 10,000 independent contractors and gross at least $100 million in a calendar year.

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gig Is Up Act''.

SEC. 2. PAYROLL TAX WITHHOLDING FOR CERTAIN INDEPENDENT CONTRACTORS.

    (a) In General.--Subchapter C of chapter 21 of the Internal Revenue 
Code of 1986 is amended by redesignating section 3128 as section 3129 
and by inserting after section 3127 the following new section:

``SEC. 3128. TREATMENT OF CERTAIN LARGE EMPLOYERS.

    ``(a) In General.--In the case of a person who has at least 
$100,000,000 in gross receipts for a calendar year, and with whom at 
least 10,000 individuals contract to provide services other than as an 
employee during the calendar year--
            ``(1) any remuneration paid by such person to any such 
        individual with respect to such services (and any payment made 
        by such person to any such individual in settlement of a 
        transaction for the provision of such services) shall be 
        treated in the same manner as wages with respect to employment 
        of such individual for purposes of subchapter B and chapter 2, 
        and
            ``(2) section 3111 shall be applied--
                    ``(A) by substituting `12.4 percent' for `6.2 
                percent' in subsection (a) thereof, and
                    ``(B) by substituting `2.9 percent' for `1.45 
                percent' in subsection (b) thereof.
    ``(b) Aggregation Rules.--All persons treated as a single employer 
under subsections (a) and (b) of section 52 shall be treated as a 
single employer for purposes of this section.''.
    (b) Self-Employment Earnings for Purposes of Social Security.--
Section 211(a) of the Social Security Act (42 U.S.C. 411) is amended by 
striking ``and'' at the end of paragraph (15), by striking the period 
at the end of paragraph (16) and inserting ``; and'', and by inserting 
after paragraph (16) the following new paragraph:
            ``(17) There shall be included amounts treated as wages 
        under section 3128 and an amount equal to \1/2\ of the tax 
        imposed under section 3111 pursuant to the substituted rates 
        specified in subparagraphs (A) and (B) of section 
        3128(a)(2).''.
    (c) Clerical Amendment.--The table of sections for subchapter C of 
chapter 21 of such Code is amended by striking the item relating to 
section 3128 and inserting the following new items:

``Sec. 3128. Treatment of certain large employers.
``Sec. 3129. Short title.''.
    (d) Effective Date.--The amendment made by this section shall apply 
to remuneration and other payments made after December 31, 2021.
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