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]