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Friday, April 18, 2014

Some lawmakers’ contractors may not be paying their taxes

Some lawmakers’ independent contractors may not be paying Social Security taxes and not paying their business gross revenue taxes on a monthly basis, House Speaker Eli Cabrera (R-Saipan) said.

Cabrera, in an interview, said he’s been advised by the Department of Finance to remind members to “clear their taxes before they get payments.”

“I think the checks for November and/or December are on hold until they get a tax clearance. I am just asking them to comply based on conversations with Finance,” Cabrera told Saipan Tribune.

Many lawmakers enter into independent contracts with their office staffers. The independent contractors are the ones responsible to file and pay required taxes, not the lawmakers.

The speaker separately issued a memo, encouraging lawmakers with independent contracts to “remind their independent contractors to comply with Public Law 17-30 and to file all income with the Social Security Office for the calculations of social security taxes.”

PL 17-30 requires the filing of business gross revenue taxes to be paid on a monthly basis, a change from the previous quarterly filing.

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