What does Preamble of Gig Is Up Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would require payroll tax withholding on independent contractors of certain large businesses.

What does SHORT TITLE. of Gig Is Up Act do?

This bill is formally titled the 'Gig Is Up Act'.

What does PAYROLL TAX WITHHOLDING FOR CERTAIN INDEPENDENT CONTRACTORS. of Gig Is Up Act do?

This section amends the Internal Revenue Code of 1986 to modify payroll tax withholding for certain large employers. It establishes rules for treating remuneration paid to individuals contracting services (rather than as employees) as wages for purposes of subchapter B and chapter 2. For employers with at least $100,000,000 in gross receipts and using at least 10,000 independent contractors, the rates specified in sections 3111(a) and 3111(b) are doubled. The Social Security Act is amended to include amounts treated as wages under the new section 3128, as well as half of the tax imposed under section 3111 using the doubled rates. The table of sections for subchapter C of chapter 21 of the Internal Revenue Code is amended to reflect the new section 3128 and a new short title section 3129. These amendments apply to remuneration and other payments made after December 31, 2026.

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Gig Is Up Act

Last updated: 6/2/2026 · Introduced: 6/2/2026

Author: Bonnie Watson Coleman (D-NJ)

TL;DR (AI)

The bill requires large businesses (with over $100 million in gross receipts and 10,000 independent contractors) to double payroll tax withholding on payments to independent contractors.
It treats remuneration paid to these independent contractors as wages for payroll tax purposes, impacting both the Internal Revenue Code and the Social Security Act.
These changes apply to payments made after December 31, 2026.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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