H.R. 3396: To amend the Internal Revenue Code of 1986 to change the classification of employers and employees for services providers.

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H.R. 3396: To amend the Internal Revenue Code of 1986 to change the classification of employers and employees for services providers.

115th Congress · introduced 2017-07-25 · Taxation · Latest: Referred to the House Committee on Ways and Means.

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Official title

To amend the Internal Revenue Code of 1986 to change the classification of employers and employees for services providers.

Plain summary

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: 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.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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Alternatives

Needs sources: no published alternatives yet (for example a different bill, a law instead of an amendment, or keeping current law). We only show items backed by a published source. Suggest one.

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Officials and money

Sponsor: Rep. Paulsen, Erik [R-MN-3] · 1 cosponsors

Cost estimate: No cost estimate published yet.

Cosponsors on this site

Elise M. Stefanik (R-NY)

No linked floor roll calls in our collected records yet. This does not mean the bill has never had a vote. Check the official bill history.

Sources

• Congressional Research Service summary (Introduced in House)
• Congress.gov
• Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-115hr3396.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/115/hr>

Record fed-us-cong115-hr3396 · catalog fed-us-congress-bills-cong115 · updated 2026-11-15 by psicol fed-bills-cong115