It’s My Business is a coalition of individuals and organizations that supports 10.3 million people who are exercising their right to work for themselves. We are raising awareness about the assault on independent contracting that threatens America’s economy. Please help support independent contractors.

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Home > Blog > The Truth about Taxes

The Truth about Taxes

It’s time for some truth about independent contractors and the taxes they pay.

One of the arguments made against independent contracting by state and federal agencies is that labor and tax laws are somehow being evaded by companies that engage the services of independent contractors. These opponents want independent contractors to be reclassified as employees so that the businesses—not the contractors themselves—become responsible for collecting taxes.

So, is there a problem with independent contractors paying taxes as they should? The answer is no.

Consider these two myth-shattering facts: The IRS says accurate reporting of income from contractors (who receive 1099 forms) is virtually identical to that of employees (who receive W-2s). More importantly, according to the U.S. Treasury, “independent contractors and their clients tend to pay higher levels of taxes, especially Social Security and Medicare taxes, than employees and employers.”

Contrary to the myth opponents spread, independent contracting—not wage employment—delivers greater tax revenue.

It’s My Business is a coalition of individuals and organizations that supports 10.3 million people who are exercising their right to work for themselves. We are raising awareness about the multi-front assault on independent contracting that is intensifying across America, threatening harmful consequences to the economy. Please help us support independent contractors. Read More
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