Independent Contractors' Tax Act (1978)

The Independent Contractors' Tax Act of 1978 is legislation that clarified how taxes are applied to workers engaged as independent contractors rather than employees. It established that independent contractors are responsible for their own tax obligations, including income tax and social security contributions. The Act also sought to distinguish between employees and independent contractors to ensure proper tax treatment and compliance. Essentially, it provides a legal framework to ensure that independent contractors are correctly taxed and that the government collects the appropriate revenues from such work arrangements.