The proposed bill aims to amend the Code of West Virginia by introducing a new section, 11-21-11a, which establishes the Taxpayer Protection Act. This act is designed to prevent the misclassification of resident individual taxpayers as independent contractors, ensuring that the state accurately collects taxes from employment. To achieve this, the bill mandates the implementation of an "ABC" test by the Tax Commissioner to determine the classification of workers. The test assesses whether a worker is free from employer control, whether their tasks are unusual in relation to the employer's business, and whether they are customarily independent from the employer.

Furthermore, the bill presumes that a worker is an independent contractor unless the hiring entity can prove that the worker is subject to typical employee control, performs work under the direction of the principal, and is economically responsible to the principal. This legislative change aims to clarify the classification of workers and protect taxpayers from being misclassified, thereby ensuring fair tax collection practices in West Virginia.

Statutes affected:
Introduced Version: 11-21-11a