Tax Administration: Improving Independent Contractor Compliance with Tax Laws (Testimony, 08/04/94, GAO/T-GGD-94-194). This testimony focuses on the tax compliance issues arising from health care reform proposals. Some reform provisions affect the rules for classifying workers as employees or independent contractors and for reporting payments made to independent contractors on information returns. Also, some employers would be required to pay most health insurance premiums for their workers. GAO makes three main points. First, independent contractors tend to have lower tax compliance than employees. Second, an employer mandate could induce employers to use more independent contractors, some of which will be misclassified because of unclear classification rules. Third, to the extent that health care reform can address these issues through better information reporting and other measures, the better for tax administration. --------------------------- Indexing Terms ----------------------------- REPORTNUM: T-GGD-94-194 TITLE: Tax Administration: Improving Independent Contractor Compliance with Tax Laws DATE: 08/04/94 SUBJECT: Income taxes Tax returns Tax law Job classification Health insurance cost control Reporting requirements Tax administration systems Health insurance Proposed legislation Voluntary compliance IDENTIFIER: Clinton Health Care Plan National Health Care Reform Initiative Health Security Act ------------------------------------------------------------------------ We regret that electronic text of GAO Testimony is not available at this time. See the GAO FAQ - Section 2.0 for printed copy ordering information. The FAQ is automatically retrieved with all WAIS search results or can be obtained by sending e-mail to: [email protected]