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Titles Actions Overview All Actions Cosponsors Committees Related Bills Subjects Latest Summary All Summaries

Titles (1)

Official Titles

Official Titles - House of Representatives

Official Title as Introduced

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


Actions Overview (1)

Date
07/25/2017Introduced in House

All Actions (2)

Date
07/25/2017Referred to the House Committee on Ways and Means.
Action By: House of Representatives
07/25/2017Introduced in House
Action By: House of Representatives

Cosponsors (1)

* = Original cosponsor
CosponsorDate Cosponsored
Rep. Stefanik, Elise M. [R-NY-21] 10/31/2017

Committees (1)

Committees, subcommittees and links to reports associated with this bill are listed here, as well as the nature and date of committee activity and Congressional report number.

Committee / Subcommittee Date Activity Reports
House Ways and Means07/25/2017 Referred to

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Subjects (5)


Latest Summary (1)

There is one summary for H.R.3396. View summaries

Shown Here:
Introduced in House (07/25/2017)

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.