Gig Is Up Act

Bill Number

H.R. 9114

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-06-02: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-09T17:14:34Z

AI-Generated Summary

Summary of H.R. 9114: Gig Is Up Act

Purpose of the Legislation

This bill aims to modify tax rules so that certain large businesses must treat payments to their independent contractors similarly to employee wages for payroll tax purposes, including increased tax rates on those payments.

Key Provisions Outlined

• Applies to any business with at least $100,000,000 in gross receipts in a calendar year that engages at least 10,000 individuals as independent contractors for services.
• Requires that payments to these contractors (including settlements) be handled like wages for specific tax purposes under the Internal Revenue Code.
• Doubles the standard employer payroll tax rates for these payments.
• Includes rules to combine related businesses when counting size thresholds.
• Adjusts Social Security rules to include these treated payments in earnings calculations, with an added amount equal to half the doubled tax.
• Takes effect for payments made after December 31, 2026.

Significant Changes to Existing Law Introduced

• Creates a new section in the tax code (Section 3128) that reclassifies contractor payments for large employers, overriding normal independent contractor treatment for payroll taxes.
• Alters Section 3111 to double tax rates specifically for affected employers.
• Updates the Social Security Act to incorporate these payments into self-employment earnings formulas.

Potential Impacts on Government Agencies, Citizens, or International Relations

• Government agencies: The Internal Revenue Service would oversee new withholding requirements, and the Social Security Administration would process increased earnings reports.
• Citizens: Independent contractors working for covered businesses could see automatic tax withholdings and higher overall tax burdens; affected businesses would face doubled payroll tax costs.
• No direct effects on international relations are specified in the bill.

Main Stakeholders Affected

• Large businesses meeting the revenue and contractor thresholds.
• Individuals providing services as independent contractors to those businesses.
• Federal tax collection and benefits agencies responsible for enforcement and administration.

Notable Legal, Constitutional, or Political Implications

• This represents a targeted change to tax classification rules without altering broader definitions of employment or contractor status.
• It could raise questions about equal treatment under tax law for different business sizes, though the bill does not address constitutional challenges directly.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Watson Coleman, Bonnie [D-NJ-12]

Cosponsors (7)

Rep. Lee, Summer L. [D-PA-12], Rep. McIver, LaMonica [D-NJ-10], Rep. Hayes, Jahana [D-CT-5], Rep. Tlaib, Rashida [D-MI-12], Rep. Adams, Alma S. [D-NC-12], Rep. Omar, Ilhan [D-MN-5], Rep. Ramirez, Delia C. [D-IL-3]

Recent Actions

• 2026-06-02: Referred to the House Committee on Ways and Means.
• 2026-06-02: Introduced in House
• 2026-06-02: Introduced in House

Bill Versions

• Gig Is Up Act — issued 2026-06-02 — PDF (3 pages)