UpdateS as of January 10, 2018
Update on IC Provisions in the Tax Bill – Trump officially signs a sweeping tax reform bill into law. Although independent contractor clarification language was not included in the final bill, CLDA and other businesses and organizations that utilize independent contractor models will continue to work to get new legislation passed that clarifies the relationship between an IC and the service recipient or payor.
As many of you might know, President Trump signed a sweeping tax reform bill into law on December 22. Highlights of the bill include a lower rate for individuals and corporations, a new deduction for “pass-through” businesses whose income is taxed through the individual code, and doubles the standard deduction. CLDA remained involved throughout the construction of this tax bill to push for a provision to be added that would clarify the formal definition of who an independent contractor (IC) is and create a Safe Harbor provision to define the relationship between an IC and the service recipient or payor. Although this provision was supported by the digital companies that also utilize the IC model, our IC provision did not make it into the final tax legislation. CLDA was one of many groups that had provisions introduced and examined, but ultimately did not pass the Senate’s procedural “Byrd Rule”. CLDA will continue to work with Congressman Erik Paulsen (R-MN) and Senate Republicans to look for an additional avenue to pass HR. 3396 and/or S. 1549. We thank all CLDA Members for their support thus far and will continue to work to pass legislation that will have a positive impact on CLDA Members that rely on independent contractor relationships to meet the constantly changing and demanding customer needs. For more information contact CLDA’s Director of Government Affairs, Madeline Jurch at firstname.lastname@example.org .
Trump’s Association Health Plan Executive Order – The Department of Labor has begun to issue regulations that will allow more employers join Small Business Health Plans, known as Association Health Plans. This would allow small business to offer health insurance plans that are subject to the less-onerous Affordable Care Act rules governing large group policies.
Back in October, the Trump Administration issued an executive order directing the Department of Labor to issue regulations or revise guidance to let more employers join Small Business Heath Plans, also known as Association Health Plans. This executive order spurred the start of a rulemaking process that will expand the opportunity to offer employment-based health insurance to small businesses through Association Health Plans. On January 4, 2018, the DOL announced a Notice of Proposed Rulemaking (NPRM) which outlines a proposed rule and allows stakeholders 60 days to comment on the proposed rule. However, the rulemaking process can be quite lengthy so look out for additional information about plans from CLDA staff that could help your business.