“I’ve heard this is expected to hit Uber drivers hard.”
My understanding of the purpose of the law was to force Uber and Lyft to hire their drivers. This forces Uber and Lyft to pay the taxes on the income directly, which is done weekly or biweekly instead of when/if the contractors file them. One of the driver’s of this is to improve the flow of tax revenues. Another is to force the new “employers” to pay benefits, many of which are really taxes, like “unemployment insurance.”
I tried to work for several small companies in the nineties and was told that they had been sued by the IRS and forced to sign a contract with the IRS saying they would not employ contractors. The government’s issue was getting a smoother flow of revenue. The IRS specifically targeted companies of a certain size that made it profitable to go after them, but companies that were too small to fight back. The contract was because what the IRS was doing was not legal. The IRS’s leverage was they seized the bank accounts of those companies and forced a settlement. The alternative was going out of business. Since I got this story from several companies I tend to believe it.
Government is the mafia with a better retirement plan and dental coverage.
Government is the mafia with a better retirement plan and dental coverage.
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The first 4 words of your sentence are definitely true.
Uber need not hire the drivers. the drivers need to incorporate themselvs.