Gig Is Up Act

Key Points

• This bill targets very large companies (over $100 million in revenue and using at least 10,000 independent contractors) and forces them to withhold payroll taxes from contractor pay just like they do for regular employees.
• Payments to contractors at these large companies would be treated the same as wages for Social Security and Medicare tax purposes, meaning taxes would be automatically withheld from their paychecks instead of workers having to pay estimated taxes on their own.
• The bill doubles the employer-side Social Security and Medicare tax rates for these large companies, significantly increasing the cost of using contractors instead of hiring employees.
• Gig workers at affected companies would get credit toward Social Security benefits for the wages treated under this law, helping them build retirement and disability protections they currently miss out on.
• If enacted, the new withholding and tax rules would take effect for payments made after December 31, 2026, giving companies about six months to adjust their systems.