H.R.6311 - Independent Contractor Tax Classification and Compliance Act of 198297th Congress (1981-1982)
|Sponsor:||Rep. Gephardt, Richard A. [D-MO-3] (Introduced 05/06/1982)|
|Committees:||House - Ways and Means|
|Latest Action:||06/11/1982 Subcommittee Hearings Held. (All Actions)|
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Summary: H.R.6311 — 97th Congress (1981-1982)All Bill Information (Except Text)
Introduced in House (05/06/1982)
Independent Contractor Tax Classification and Compliance Act of 1982 - Amends the Internal Revenue Code to specify standards for determining whether certain individuals qualify as independent contractors for purposes of the tax on employment income. Treats an individual as an independent contractor if such individual: (1) controls the total number and scheduling of his work hours; (2) has no principal place of business provided rent-free by the service-recipient; (3) has substantial investment in his business (excluding vehicles) and earns income based upon sales or output rather than upon number of hours worked; and (4) performs services under a written contract and is provided written notice of his responsibilities with respect to income and self-employment taxes.
Provides that the criteria established by this Act shall not be applicable to agent-drivers, commission-drivers, full-time life insurance salesmen, home workers, and traveling or city salesmen who are statutorily designated as employees for purposes of social security taxation.
Sets forth special rules for: (1) contracts entered into before January 1, 1983; and (2) determining control of scheduling work hours.
Provides that the failure of an individual claiming independent contractor status to meet the criteria established by this Act shall not create an inference that such an individual is an employee or that the recipient of his service is an employer. Limits the applicability of the criteria established by this Act to questions of employment status arising under the Federal Insurance Contributions Act, the Federal Unemployment Tax Act, self-employment tax provisions, and withholding requirements under the Internal Revenue Code.
Requires a recipient of an independent contractor's services to file an information return disclosing payments made to such individual in excess of $600 per year. Requires persons who sell over $5,000 in consumer products to buyers on a buy-sell, deposit-commission, or similar basis to file a similar return.
Permits an election to file such returns in certain circumstances. Requires individuals who file such information returns to furnish to persons with respect to whom such information is reported written statements which indicate the amount of payment reported. Provides penalties for failure to furnish information returns or statements.
Requires the payment of a surcharge for multiple violations.
Requires the withholding of tax on certain persons where the identifying number is incorrect or missing on any return filed by a service-recipient.
Sets forth effective dates and transitional rules for provisions of this Act.