DoorDash and Uber, companies that rely mainly on independent delivery drivers, want the drivers covered by President Donald Trump's 'No Tax on Tips' idea.
Executives for both, reported The Wall Street Journal, are putting pressure on Republican lawmakers directly involved in the process negotiations.
The sticking point is the drivers are independent contractors and are, therefore, paid differently than employees. Contractors get a 1099 form to report what they are paid. That's different from the traditional employee reporting process using a W-2, where employers are involved with collecting payments and deducting and reporting taxes.
Current plans being reviewed by top Republicans would allow workers at casinos and restaurants who get tips to be covered by the proposed exemption, reported the Journal. But workers paid using the 1099 process would not receive the benefit.
Uber's Javi Corresco told the Journal, "We've become a major component of how consumers tip. If Congress is going to move in the direction of prioritizing this no-tax-on-tips concept, we're engaged in asking lawmakers to support Uber drivers and UberEats couriers as a fairness issue."
Millions of people are involved. Industry trade group Flex Association estimates well over 7 million people in America perform full- or part-time jobs as independent contractors. Many receive tips for their driving and delivery work.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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