[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4099 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4099

  To amend the Internal Revenue Code of 1986 to clarify the status of 
employee leasing organizations and to promote and protect the interests 
    of employee leasing organizations, their customers, and workers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 9, 2002

   Mr. Crane (for himself, Mr. Jefferson, and Mr. Lewis of Kentucky) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify the status of 
employee leasing organizations and to promote and protect the interests 
    of employee leasing organizations, their customers, and workers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employee Leasing Organization Act of 
2002''.

SEC. 2. NO INFERENCE.

    Nothing contained in this Act or the amendments made by this Act 
shall be construed to create any inference with respect to the 
determination of who is an employee or employer for purposes of any 
other provision of law except those provisions specified in this Act or 
the amendments made by this Act.

SEC. 3. INCOME TAX WITHHOLDING.

    Paragraph (1) of section 3401(d) of the Internal Revenue Code of 
1986 is amended by inserting ``including a person that contractually 
assumes control of the payment of wages,'' after ``wages,''.

SEC. 4. FUTA TAX.

    Paragraph (1) of section 3306(a) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (A), by 
striking the period at the end of subparagraph (B) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(C) contractually assumes control of payment of 
                wages for purposes of section 3401(d)(1).''.

SEC. 5. FICA TAX.

    Subsection (d) of section 3121 of the Internal Revenue Code of 1986 
is amended by striking ``or'' at the end of paragraph (3), by striking 
the period at the end of paragraph (4) and inserting ``; or'', and by 
adding at the end the following new paragraph:
            ``(5) any individual who is a leased employee of an 
        employee leasing organization.''.

SEC. 6. EMPLOYEE LEASING ORGANIZATION'S ABILITY TO SPONSOR WELFARE AND 
              PENSION BENEFIT PLANS.

    Paragraph (20) of section 7701(a) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking the heading and inserting the following:
    ``(20) Employee.--
            ``(A) Full-time life insurance salesman.--'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Individual covered by an employee leasing 
                agreement.--For the purpose of applying the provisions 
                of section 79 with respect to group-term insurance 
                purchased for employees, for the purpose of applying 
                the provisions of sections 104, 105, and 106 with 
                respect to accident and health insurance or accident 
                and health plans, for the purpose of applying the 
                provisions of this title with respect to contributions 
                to or under a trust which is a part of a plan described 
                in section 401(a) (other than a defined benefit plan), 
                or to or under a plan described in section 403(a) 
                (other than a defined benefit plan), including for this 
                purpose elective contributions under section 401(k) and 
                employee contributions and matching contributions under 
                section 410(m), with respect to a tax-exempt status of 
                a trust forming a part of such plan, and with respect 
                to distributions under such a plan, or by a trust 
                forming part of such a plan, for the purpose of 
                applying the provisions of section 125 with respect to 
                cafeteria plans, for the purpose of applying section 
                127 with respect to educational assistance programs, 
                for the purpose of applying section 129 with respect to 
                dependent care assistance programs, for the purpose of 
                applying the provisions of section 414(n), and for the 
                purpose of applying the provisions listed in section 
                414(n)(3), for the purpose of applying the provisions 
                of section 106(b) with respect to contributions to 
                medical savings accounts, with respect to such other 
                benefits, plans, or programs as are described in 
                section 414(n)(3), an employee leasing organization may 
                sponsor such plans, benefits, or programs on behalf of 
                and for the benefit of any `leased employee' performing 
                services for a `recipient'.''

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall apply to remuneration paid 
after the date of the enactment of this Act.
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