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United States · Bill · S

S. 2626 (100th)

A bill to amend section 530 of the Revenue Act of 1978 to clarify the Federal income and employment tax treatment of providers of technical services through third party arrangements, and for other purposes.

referredUnited States· United States Congress· EN

Introduced

11 July 1988

Last action

11 July 1988 · Introduced

Status

Read twice and referred to the Committee on Finance.

Sponsors

Sen. Moynihan, Daniel Patrick [D-NY], Sen. Durenberger, Dave [R-MN], Sen. Kerry, John F. [D-MA], Sen. Kennedy, Edward M. [D-MA], Sen. D'Amato, Alfonse [R-NY], Sen. Dixon, Alan J. [D-IL], Sen. Trible, Paul S., Jr. [R-VA], Sen. Mikulski, Barbara A. [D-MD], Sen. Simon, Paul [D-IL], Sen. Conrad, Kent [D-ND], Sen. Cranston, Alan [D-CA]

Subjects

Taxation

Source updated

3 January 2025

Taxation

Official sourceView documentsShare

Summary

Amends the Revenue Act of 1978 with respect to the employment status, for income and employment tax purposes, of providers of technical services, such as engineering, drafting, and computer programming, under third-party arrangements. Declares that the service provider will not be considered as an employee of the broker or service recipient and the broker or service recipient will not be treated as an employer of the service provider if: (1) the services are provided in accordance with a qualified written contract between the provider and the broker; and (2) the provider provides no more than 18 months of substantial continuous services for the same recipient. Applies these provisions only if the broker elects such application and does not compensate the provider when not providing services during the relevant time period. Treats the broker as the employer for withholding tax purposes, requiring tax withholding at the rate of ten percent of payments to the provider for the technical services.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 11 July 1988

    Introduced

    Read twice and referred to the Committee on Finance.

    Source: IntroReferral

  2. 11 July 1988

    Introduced

    Introduced in Senate

    Source: IntroReferral

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

Leesvertaling

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Sponsors

Related records

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Sources

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