Taxpayer Protection Act

HB 3185, the Taxpayer Protection Act, prevents employers from misclassifying workers as independent contractors when they should be treated as employees for tax purposes. It requires West Virginia’s Tax Commissioner to apply an "ABC test" to determine worker status: whether the worker has no employer control, performs unusual work for the business, and operates as a separate business. Employers must prove all three criteria to classify a worker as independent; otherwise, the worker is presumed an employee. This directly affects individual taxpayers (workers) and employers who may have misclassified workers, ensuring the state collects proper employment taxes. The bill aims to clarify tax obligations without changing tax rates or creating new revenue streams.