ABx1 12 - Extending Tax Withholding Requirements to Payments to Independent Contractors - California Key Vote

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Title: Extending Tax Withholding Requirements to Payments to Independent Contractors

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Title: Extending Tax Withholding Requirements to Payments to Independent Contractors

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that extends tax withholding requirements to business or government entities that pay independent contractors for goods or services, and specifies that the withholding rate shall be 3 percent of the payments.

Highlights:

- Exempts the the following payments from the withholding requirements (Sec. 6):

    - The first $600 paid to a contractor for goods or services each year; - Payments to tax-exempt entities and foreign governments; - Intra-governmental payments; and - Wage payments or any other payments subject to mandatory withholding under Section 13020 of the Unemployment Insurance Code.
- Specifies that anyone who fails to withhold taxes established under this Act is guilty of a misdemeanor, punishable by a fine of up to $1,000, imprisonment for up to one year, or both a fine and imprisonment (Sec. 3).

Title: Extending Tax Withholding Requirements to Payments to Independent Contractors

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