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.

Under the new provisions, a worker is presumed to be 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 bill seeks to clarify the criteria for classifying workers, thereby protecting taxpayers from being misclassified and ensuring proper tax collection for the state.

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