Tax law interpretation could hit agents, cos.

National Underwriter Property & Casualty-Risk & Benefits Management, December, 1990 by Brostoff, Steven

Tax Law Interpretation Could Hit Agents, Cos. WASHINGTON--Insurance representatives are hoping that the 102nd Congress will resolve an ongoing controversy over a technical yet vital area of tax law: the classification of workers as independent contractors. The issue is how to determine whether an individual is an employee of a company (with his or her compensation subject to withholding and the employer liable for social security and unemployment taxes), or an independent contractor (with compensation not subject to withholding and no employer liability for social security and unemployment).

Currently, independent insurance agents are treated as independent contractors. However, the Internal Revenue Service has targeted independent contractors as...

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