Gig Is Up Act

HR 8013, the Gig Is Up Act, requires large employers (those with $100 million+ in annual gross receipts and 10,000+ independent contractors) to treat payments to certain gig workers as wages for payroll tax purposes. This means these employers must withhold Social Security and Medicare taxes at double the standard rate (instead of the usual 7.65%), similar to how they handle employee wages. The change applies to payments made after December 31, 2024, and directly affects major gig platforms and their workers who currently pay self-employment taxes. The bill does not reclassify workers as employees but alters how their payments are taxed under the Social Security system.