HB 87 - Income tax; payments; define certain terms

First Reader Summary

A BILL to amend Code Section 48-7-100 of the Official Code of Georgia Annotated, relating to definitions regarding current income tax payment, so as to change the definition of the term "employee"; to define the term "independent contractor" with respect to withholding of taxes; and for other purposes.

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HB 87                                              LC 18 7766 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 48-7-100 of the Official Code of 
  1- 2  Georgia Annotated, relating to definitions regarding current 
  1- 3  income tax payment, so as to change the definition of the 
  1- 4  term "employee"; to define the term "independent contractor" 
  1- 5  with respect to withholding of taxes; to provide an 
  1- 6  effective date; to repeal conflicting laws; and for other 
  1- 7  purposes. 
 
  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 9                           SECTION 1. 
 
  1-10  Code Section 48-7-100 of the Official Code of Georgia 
  1-11  Annotated, relating to definitions regarding current income 
  1-12  tax payment, is amended by striking paragraph (4) and 
  1-13  inserting in its place a new paragraph (4) to read as 
  1-14  follows: 
 
  1-15      "(4) 'Employee' means: 
 
  1-16        (A) Any individual who is a domiciliary or resident of 
  1-17        this state and who performs services either within or 
  1-18        outside, or both within and outside, this state for an 
  1-19        employer; 
 
  1-20        (B) Any individual not a domiciliary or resident of 
  1-21        this state who performs services within this state for 
  1-22        an employer; 
 
  1-23        (C) An officer, employee, or elected official of any 
  1-24        body politic or of any agency or instrumentality of a 
  1-25        body politic, and an officer of a corporation; or 
 
  1-26        (D) Any person to whom a payment of wages is made 
  1-27        whether or not the person is an employee of the payer 
  1-28        of the wages at the time of payment. 
 
  1-29      The term 'employee' shall not include an independent 
  1-30      contractor." 
 
 
 
 
 
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  2- 1                           SECTION 2. 
 
  2- 2  Said Code section is further amended by adding a new 
  2- 3  paragraph immediately following paragraph (5), to be 
  2- 4  designated paragraph (5.1), to read as follows: 
 
  2- 5      "(5.1) 'Independent contractor' means any person or 
  2- 6      entity which: 
 
  2- 7        (A) Is a party to a contract, written or implied, 
  2- 8        which intends to create an independent contractor 
  2- 9        relationship; 
 
  2-10        (B) Has the right to exercise control over the time, 
  2-11        manner, or method of the work or service to be 
  2-12        performed; and 
 
  2-13        (C) Is, for the purposes of state or federal 
  2-14        employment taxes, treated as an independent contractor 
  2-15        by the business or enterprise for which the 
  2-16        independent contractor performs work or service." 
 
  2-17                           SECTION 3. 
 
  2-18  This Act shall become effective on January 1, 1998. 
 
  2-19                           SECTION 4. 
 
  2-20  All laws and parts of laws in conflict with this Act are 
  2-21  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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