According to the Bureau of Labor Statistics, “Self-employment continues to be an important source of jobs in the United States” and independent contractor arrangements are commonplace throughout the U.S. economy, from computer software engineers and emergency room physicians to skilled construction trades. HR Policy Association believes that such arrangements generate substantial economic and other benefits for both workers and employers and that preserving the legal status accorded independent contractors and the creation of economic opportunities for all individuals whether they offer their services as independent contractors or employees is vitally important. Although the Association supports the accurate classification of workers, and the proper and timely compliance by independent contractors with their federal, state and local tax reporting and payment obligations, the Association strongly opposes the Employee Misclassification Prevention Act because its provisions would increase the regulatory risks of doing business with independent contractors to an excessively high level. Companies that rely on the services of independent contractors would face additional burdens when engaging in legitimate and legal business practices. Such burdens would limit companies’ flexibility to retain independent contractors, which would ultimately threaten opportunities for not only independent contractors but also employees. HR Policy Association also opposes any changes to Section 503 of the Internal Revenue Code that would undermine the certainty and predictable regulatory environment the section provides to companies and independent contractors.