Self-Employed Tax Status Clarification Act of 1979

Summary

Self-employed Tax Status Clarification Act of 1979 - Amends the Internal Revenue Code to specify standards for determining whether certain individuals qualify as independent contractors for purposes of social security taxation. Treats an individual as an independent contractor if such individual: (1) controls the total number of his work hours; (2) does not maintain a principal place of business, or if so, such place of business is not provided, or not provided rent-free, by the person for whom such individual performs services; (3) has substantial investment in his business and earns income based upon sales or output rather than upon number of hours worked; and (4) performs services pursuant to a written contract and is provided written notice of his responsibility with respect to income and self-employment taxes; (5) has a substantial investment in the assets used to perform such service, either through ownership or under a lease, and bears responsibility for their maintenance and the principal burden of their operating costs; and (6) performed similar services for five or more payors during the preceding calendar year, and objective circumstances indicate that such individual can reasonably expect to perform services for five or more payors during the taxable year. Amends Title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to provide coverage for services performed by an individual who qualifies as an independent contractor under the standards established by this Act. Requires the Secretary of the Treasury to report to the appropriate congressional committees not later than January 1, 1984, on the compliance of individuals covered by this Act with the income reporting and tax paying requirements of the Code.

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1 official file

• Introduced in House

  summary · EN · 13 September 1979

  Open at official source

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