• A Congressional subcommittee is looking into the misclassification of employees as self-employed persons. The House Ways and Means Subcommittee on Select Revenue Measures held a hearing on July 23, 1992, to receive testimony on this important issue. Subcommittee chairman Rep. Charles B. Rangel noted that "the misclassification of employees as independent contractors [self-employed persons] raises significant issues for the misclassified individual, including whether the individual is receiving adequate social security coverage and basic health and pension benefits. Further, misclassification involves serious tax administration questions for the federal government because of the reduced compliance with federal tax laws that independent contractor status historically brings."
See Also: Income Taxes
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