Taxpayer Protection Act

HB 4571, the "Taxpayer Protection Act," prevents West Virginia residents from being wrongly classified as independent contractors instead of employees. It requires the Tax Commissioner to apply an "ABC" test to determine worker status: (1) absence of employer control, (2) work being unusual for the employer’s business, and (3) the worker operating as an independent business. Employers must prove all three criteria to classify a worker as an independent contractor; otherwise, the worker is presumed an employee for tax purposes. This ensures the state collects proper income taxes from employment relationships, directly affecting both workers (who may gain tax protections) and hiring businesses (which must comply with the classification rules).