Connecticut House Bill HB05318

Connecticut 2015 Regular Session

• Introduced: 1/13/15
• Refer: 1/13/15

Caption

An Act Concerning Independent Contractors, Business Owners And Internal Revenue Service Form 1099.

Impact

By requiring business owners to handle the filing of IRS Form 1099, HB 5318 is expected to streamline the reporting process and improve compliance among independent contractors. This change is likely to diminish the administrative burden on individual contractors who currently must prepare and submit their own forms. Additionally, proponents of the bill argue that it will lead to greater accuracy in tax reporting and collection.

Summary

House Bill 5318 aims to amend existing state statutes regarding the reporting obligations of business owners who hire independent contractors. The proposed legislation mandates that business owners must report the wages paid to independent contractors directly to the Internal Revenue Service (IRS) using Form 1099, rather than allowing the contractors themselves to file this form. This shift in responsibility is intended to reduce instances of tax fraud and enhance state tax revenue.

Contention

While supporters of HB 5318 claim it will support transparency and accountability in tax reporting, there are concerns regarding the additional responsibilities placed on business owners. Some stakeholders, particularly small business owners, may feel that this requirement could add to their operational burdens and overhead costs. Critics argue that the bill could disproportionately impact smaller companies that may not have the resources to manage these new reporting requirements effectively.