There’s no possibility for social change if you don’t start a conversation. Here’s a guide on how you can get started today and improve the status quo of caregiving legislation.
There are a number of pieces of legislation that are coming into effect and/or are being considered that affect your caregiving registry and caregivers. We’ll go over a few, including:
- IRS $600 gig worker threshold for 2024
- The PRO Act
Caregivers have to report earnings of $600 or more
This upcoming tax season, the IRS will require 1099 gig workers and online sellers to report any income of $600 or more (including third-party payment transactions made on Venmo and Paypal).
In 2022, the minimum threshold was $20,000 in earnings or at least 200 separate transactions.
This sharp contrast in minimums creates confusion for workers trying to establish businesses and find work for themselves. This legislation creates unnecessary barriers for caregivers to hurdle, especially when navigating work across multiple registries as well as complex reporting documents.
Share your thoughts with your local senators and representatives on the impacts this will have on your caregiver registry and workers, respectively.
In the meantime, make sure that you issue 1099-K forms properly this year. (PSST: You can also check out Ally’s payment barrier feature to protect your registry in the event of a DOL audit.)
Say “No” to the PRO Act
A beta test of this legislation—called AB5—was completed in California and nearly eliminated independent contracting work, including freelance journalism. AB5 led businesses to stop using independent contractors, who appreciate the flexibility that comes with self-employment.
We’ve seen this in their state before, with the LA Times describing it as “a law that classified gig workers as employees, entitling them to benefits and protections.” In this story, they were talking about Uber drivers, who most understand to be independent contractors.
The PRO Act bill would re-introduce AB5 at the federal level, expanding protections for workers to organize and bargain. As you already understand, if independent contractors wanted to join unions or receive benefits, they would’ve sought out W2 employment.
Current state, the bill hasn’t reached the Senate yet, where a filibuster would need at least 60 votes to pass. Share your thoughts on this subject (H.R.20 Protecting the Right to Organize Act of 2023) with your local senators and representatives today.
What to say
We will continue to update this article as more legislation comes down the pipeline that affect your business, but in the meantime, here’s a template that you can copy and paste and fill in with the proper information:
Subject Line: Please support/oppose [BILL NAME & NUMBER]
Dear Senator/Representative [insert name],
My name is ___________and I am a constituent of yours in [TOWN/CITY]. I am writing
today to ask you to support/oppose [BILL NAME & NUMBER].
[Add why this bill is important to you and how you’re uniquely affected by it in terms of your business and/or the caregivers that rely on you for independent work].
Thank you for your continued leadership. Can I count on you to convey your support/opposition of this bill to [LEGISLATION’S NEXT REVIEWING BODY]? I look forward to hearing back from you.
Sincerely,
[YOUR NAME]
[YOUR ADDRESS]
