Misclassification of Employees Act

Summary

Misclassification of Employees Act - Title I: Amendments Relating to Internal Revenue Code of 1986 - Amends the Internal Revenue Code to provide for the waiver of employment tax liability for employers for any period if: (1) the employer did not treat an individual as an employee for purposes of employment taxes; (2) the treatment of such individual was based on a reasonable good faith misapplication of the common law rules used for determining the employer-employee relationship; (3) Federal tax returns for such period were filed on a basis consistent with the treatment of such individual as not being an employee; (4) the employer (and any predecessor) did not treat any other individual holding a substantially similar position as an employee for employment tax purposes after December 31, 1977; and (5) the employer enters into a closing agreement with the Secretary of the Treasury with respect to treating such individual as an employee. Amends the Revenue Act of 1978 to require an employer to have a reasonable basis for not treating an individual as an employee. Repeals the use of a prior audit as a reasonable basis. Removes the prohibition against regulations and rulings on employment status. Amends the Internal Revenue Code to provide for the determination of whether an individual is an employee of another person for purposes of unemployment compensation. Title II: Amendments to Federal Property and Administrative Services Act of 1949 - Amends the Federal Property and Administrative Services Act of 1949 to provide for the classification of persons as employees and independent contractors under certain procurement contracts for purposes of any employment tax. Title III: Amendments to Title 10, United States Code - Amends the military law to provide for the classification of persons as employees and independent contractors under defense contracts for purposes of any employment tax.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

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• Introduced in House

  summary · EN · 19 November 1991

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