US HB3396 | 2017-2018 | 115th Congress

Status

Spectrum: Partisan Bill (Republican 2-0)
Status: Introduced on July 25 2017 - 25% progression, died in committee
Action: 2017-07-25 - Referred to the House Committee on Ways and Means.
Pending: House Ways And Means Committee
Text: Latest bill text (Introduced) [PDF]

Summary

To amend the Internal Revenue Code of 1986 to change the classification of employers and employees for services providers. This bill amends the Internal Revenue Code to establish a test for determining if a service provider should be classified as an independent contractor rather than as an employee for tax purposes. If the requirements of the test are met, the provider may not be treated as an employee, the recipient or any payor may not be treated as an employer, and compensation for the service may not be treated as paid or received with respect to employment. The factors of the test include: the relationship between the parties (i.e., the provider incurs expenses or risks income fluctuations; does not work exclusively for a single recipient; performs the service for a particular amount of time, to achieve a specific result, or to complete a specific task; or is a sales person compensated primarily on a commission basis); the place of business or ownership of the equipment (i.e., the provider has a principal place of business, which can be home or mobile-based, or bears financial responsibility for the equipment used to provide the service); and the services are performed under a written contract that meets certain requirements (i.e., specifies that the provider is not an employee, the recipient will satisfy reporting requirements, and that the provider is responsible for taxes on the compensation). The bill also sets forth: (1) reporting requirements for service recipients who meet the requirements of the test, and (2) procedures for the reclassification of employment status by the Internal Revenue Service.

Tracking Information

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Title

To amend the Internal Revenue Code of 1986 to change the classification of employers and employees for services providers.

Sponsors


History

DateChamberAction
2017-07-25HouseReferred to the House Committee on Ways and Means.
2017-07-25HouseIntroduced in House

Same As/Similar To

SB1549 (Related) 2017-07-13 - Read twice and referred to the Committee on Finance.
HB4165 (Related) 2017-10-27 - Referred to the House Committee on Ways and Means.

Subjects


US Congress State Sources


Bill Comments

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