Misclassification of Employees Act

Misclassification of Employees Act - 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, and monitored by, the Secretary of the Treasury with respect to treating such individual as an employee. Amends the Revenue Act of 1978 (relating to controversies involving whether individuals are employees for purposes of employment taxes) to require an employer to have a reasonable basis for not treating an individual as an employee. Requires the use of a recent prior audit as a reasonable basis. Excludes certain skilled technical personnel from such tax treatment. Removes the prohibition against regulations and rulings on employment status. Amends the Internal Revenue Code to set forth additional information to be included on statements covering payments for services. Provides for the determination of whether an individual is an employee of another person for purposes of unemployment compensation.