Bill > H145

This bill proposes to add a new chapter to the Massachusetts General Laws, Chapter 93L, titled "Bona Fide Business Entities," to clarify the definition of such entities. The key provision states that a business entity providing services under a written contract will not be considered an employee for the purposes of Title IX (likely referring to federal education and civil rights laws, though in this context it seems to be used broadly to include taxation), Taxation, and Title XXI (Labor and Industries), as long as the business entity is considered "bona fide." To be deemed bona fide, a business entity must meet four criteria: it must be registered with and in good standing with the Secretary of the Commonwealth; it must report its compensation as income from an independent business on federal and state tax forms; it must report any employee compensation to the Internal Revenue Service and the Massachusetts Department of Revenue; and it must comply with all federal and state tax, unemployment insurance, workers' compensation insurance, and labor and employment law obligations concerning its employees. This aims to provide clearer guidelines for distinguishing independent business entities from employees, which has implications for taxation and labor regulations.