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1999 SESSION

993824203
HOUSE JOINT RESOLUTION NO. 752
Offered January 21, 1999
Establishing a joint subcommittee to study audits of small businesses who utilize consultants or independent contractors.
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Patrons-- Devolites, Byron, Jones, S.C., Landes and Rust
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Referred to Committee on Rules
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WHEREAS, many small businesses rely on independent contractors and consultants as a means of competing in today’s business environment; and

WHEREAS, many small businesses are not responsible for the payment of unemployment taxes for consultants and independent contractors provided that the provisions of subsection C of § 60.2-212 are met; and

WHEREAS, the use of consultants and independent contractors may lead to further investigation when such companies are audited by the Virginia Employment Commission; and

WHEREAS, responding to such audits can be an expensive and time-consuming process for such small businesses; and

WHEREAS, refining the audit process to establish review procedures that are streamlined and responsive to the needs and resources of small businesses will allow small businesses to focus their energy on competing in the marketplace; now, therefore, be it

RESOLVED by the House of Delegates, the Senate concurring, That a joint subcommittee be established to study audits of small businesses which utilize consultants. The joint subcommittee shall be composed of ten members, which shall include five members of the House of Delegates, to be appointed by the Speaker and five members of the Senate, to be appointed by the Senate Committee on Privileges and Elections.

In conducting its study, the joint subcommittee shall examine methods of reducing the administrative and time consuming burdens placed on small businesses which utilize consultants and independent contractors. The joint subcommittee shall consider creating “safe harbors,” including the establishment of specific dollar thresholds, as a means of allowing those small businesses that utilize consultants and independent contractors to avoid the time and expense of an audit.

The direct costs of this study shall not exceed $ 3000.

The Division of Legislative Services shall provide staff support for the study. Technical assistance shall be provided by the Virginia Employment Commission. All agencies of the Commonwealth shall provide assistance to the joint subcommittee, upon request.

The joint subcommittee shall complete its work in time to submit its findings and recommendations to the Governor and the 2000 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents.

Implementation of this resolution is subject to subsequent approval and certification by the Joint Rules Committee. The Committee may withhold expenditures or delay the period for the conduct of the study.