Gig Is Up Act
Sponsored By: Representative Watson Coleman, Bonnie [D-NJ-12]
Introduced
Summary
Reclassifies pay to many gig workers as wages so employers must withhold payroll taxes. The bill targets very large firms and doubles the payroll tax rates applied to those payments for tax purposes, effective for payments after December 31, 2026.
Show full summary
- Workers: Payments made to independent contractors of covered firms would be treated as wages for payroll tax withholding, changing how those payments are taxed at the source.
- Large businesses: Firms with at least $100 million in annual gross receipts and at least 10,000 contractors in a year would face withholding obligations and have the payroll tax rates in section 3111 multiplied by 2.
- Social Security accounting: The Social Security Act would be adjusted to include amounts treated as wages under the new rule and an amount equal to one-half of the doubled tax for tracking and crediting purposes.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New payroll tax for big platforms
This bill would treat pay to many independent contractors as wages when the payer has at least $100,000,000 in annual receipts and uses 10,000 or more contractors in a year. For those payments, the company would have to withhold payroll taxes and pay employer payroll taxes as if the workers were employees. The bill would double the payroll tax rates applied to those wages and would count those wages for Social Security benefit calculations, including adding an amount equal to half of the doubled payroll tax for those earnings. These rules would apply to payments made after December 31, 2026, and related companies would be counted together under aggregation rules.
Sponsors & CoSponsors
Sponsor
Watson Coleman, Bonnie [D-NJ-12]
NJ • D
Cosponsors
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 6/2/2026
Rep. McIver, LaMonica [D-NJ-10]
NJ • D
Sponsored 6/2/2026
Rep. Hayes, Jahana [D-CT-5]
CT • D
Sponsored 6/2/2026
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 6/2/2026
Rep. Adams, Alma S. [D-NC-12]
NC • D
Sponsored 6/2/2026
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 6/2/2026
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 6/2/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov