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Provision in deficit proposal could affect use of independent contractors

President Obama included a provision in his Deficit Reduction/American Jobs Act that would repeal Section 530 of the Internal Revenue Code, which provides employers with protection against retroactive and prospective Internal Revenue Service reclassification of workers from independent contractors to employees. In addition, the administration's proposal would direct the IRS to rewrite worker classification rules. Given the proposal's impact on newspapers' use of independent contractors, NAA is working to convince policymakers that it would pose significant problems for newspapers and cause harm to the economy. more


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