Amendment #113 to H4714

Encouraging the Growth of Small Businesses

Representatives McMurtry of Dedham, Lawn of Watertown, Chan of Quincy, Ferrante of Gloucester, Ashe of Longmeadow, Tucker of Salem, Cahill of Lynn and Vega of Holyoke move to amend the bill by inserting at the end thereof the following new section;-

SECTION XXX.

Section 1. The Massachusetts General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting after Chapter 93K the following new chapter:

Chapter 93L, Bona Fide Business Entities

Section 1. A business entity that provides services under a written contract is not an employee for the purposes of Title IX, Taxation, and Title XXI, Labor and Industries, provided that the business entity is bona fide. A business entity will be deemed to be bona fide if it is shown that:

(a) The business entity is registered as such with the Secretary of the Commonwealth and is in good standing;

(b) The business entity includes the compensation it receives for the services it renders on federal and applicable state tax schedules as income from an independent business or profession;

(c) The business entity reports the compensation paid to its employees, if any, to the Internal Revenue Service and the Massachusetts Department of Revenue; and

(d) The business entity complies with federal and state tax, unemployment insurance, workers’ compensation insurance, and labor and employment law obligations with respect to its employees.