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IBM lobbied Congress and got a law pass making that illegal just for programmers. That law is still on the books. It's the first time I hear that, do you have
by severine 2y ago
IBM lobbied Congress and got a law pass making that illegal just for programmers. That law is still on the books.
It's the first time I hear that, do you have a link?
- jmclnx 2y ago>Introduced by Senator Daniel Patrick Moynihan, Section 1706 added a subsection (d) to Section 530 of the Revenue Act of 1978, which removed "safe harbor" exception for independent contractor classification (which at the time avoided payroll taxes) for workers such as engineers, designers, drafters, computer professionals, and "similarly skilled" workers. From https://en.wikipedia.org/wiki/Tax_Reform_Act_of_1986 https://en.wikipedia.org/wiki/Tax_Reform_Act_of_1986 This was backed by IBM and lots of programmers had to change their classification. Many people lost income due to it. >In one report in 2010, Moynihan's initiative was labeled "a favor to IBM."[19] A suicide note by software professional Joseph Stack, who flew his airplane into a building housing IRS offices in February 2010, blamed his problems on many factors, including the Section 1706 change in the tax law while even mentioning Senator Moynihan by name, though no intermediary firm is mentioned, and failure to file a return was admitted.
- karmakaze 2y ago> independent contractor So then it should be fine as long as you go through a contracting/services company.
- jmclnx 2y agoCorrect, but the people I know caught by this lost a decent amount of income. Most of them ended up working for a contracting firm or converted to employees. Some people I know lost 50% of their pay, it all had to do with taxes.