PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Jul 25, 2017
This bill amends the Internal Revenue Code to establish a test for determining if a service provider should be classified as an independent contractor rather than as an employee for tax purposes.
If the requirements of the test are met, the provider may not be treated as an employee, the recipient or any payor may not be treated as an employer, and compensation for the service may not be treated as paid or received with respect to employment.
The factors of the test include:
Showing the opening paragraphs of the official summary.
the relationship between the parties (i.e., the provider incurs expenses or risks income fluctuations; does not work exclusively for a single recipient; performs the service for a particular amount of time, to achieve a specific result, or to complete a specific task; or is a sales person compensated primarily on a commission basis);
the place of business or ownership of the equipment (i.e., the provider has a principal place of business, which can be home or mobile-based, or bears financial responsibility for the equipment used to provide the service); and
the services are performed under a written contract that meets certain requirements (i.e., specifies that the provider is not an employee, the recipient will satisfy reporting requirements, and that the provider is responsible for taxes on the compensation).
The bill also sets forth: (1) reporting requirements for service recipients who meet the requirements of the test, and (2) procedures for the reclassification of employment status by the Internal Revenue Service.
People & committees
Rep. Paulsen, Erik [R-MN-3] · R–MN
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Jan 3, 2025. Consult Congress.gov for the current record.
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