< Back to S. 2852 (107th Congress, 2001–2002)

Text of A bill to amend the Internal Revenue Code of 1986 to provide for employee benefits for work site employees of ...

...site employees of certain corporations operating on a cooperative basis.

This bill was introduced on August 1, 2002, in a previous session of Congress, but was not enacted. The text of the bill below is as of Aug 1, 2002 (Introduced).

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Source: GPO

S 2852 IS

107th CONGRESS

2d Session

S. 2852

To amend the Internal Revenue Code of 1986 to provide for employee benefits for work site employees of certain corporations operating on a cooperative basis.

IN THE SENATE OF THE UNITED STATES

August 1, 2002

Mr. TORRICELLI introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to provide for employee benefits for work site employees of certain corporations operating on a cooperative basis.

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

SECTION 1. COOPERATIVE EMPLOYING UNIT.

    (a) IN GENERAL- Section 414 of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended by adding at the end the following new subsection:

    ‘(w) COOPERATIVE EMPLOYING UNIT-

      ‘(1) PLANS MAINTAINED BY COOPERATIVE EMPLOYING UNIT- If a cooperative employing unit establishes or maintains one or more plans to provide employee benefits to work site employees, then, for purposes of applying the provisions of this title applicable to such benefits--

        ‘(A) each such plan shall be treated as a single employer plan established and maintained by the cooperative employing unit, and

        ‘(B) the cooperative employing unit shall be treated as the employer of the work site employees eligible to participate in each such plan.

      ‘(2) DEFINITIONS- For purposes of this subsection--

        ‘(A) COOPERATIVE EMPLOYING UNIT- The term ‘cooperative employing unit’ means any corporation to which part I of subchapter T applies pursuant to section 1381(a) if--

          ‘(i) all the shareholders of the corporation report business operations using the same standard industrial classification code (or successor method of economic classification adopted by the Office of Management and Budget),

          ‘(ii) the corporation has at least 21 shareholders, and

          ‘(iii) the corporation has entered into a written agreement with each shareholder which provides, with respect to every work site employee providing services to such shareholder, that the corporation shall--

            ‘(I) assume responsibility for payment of wages to the work site employee,

            ‘(II) with respect to such wages, assume responsibility for the withholding and payment of any applicable taxes under subtitle C, and for complying with the reporting requirements under this title relating to such taxes,

            ‘(III) assume responsibility for any employee benefits provided under the agreement,

            ‘(IV) assume shared responsibility with the shareholder for terminating the employment of the work site employee and for recruiting and hiring any new worker, and

            ‘(V) maintain employee records relating to the work site employee.

        Clause (iii) shall be applied without regard to the receipt or adequacy of payment from the shareholder for services to such shareholder.

        ‘(B) WORK SITE EMPLOYEE- The term ‘work site employee’ means every individual providing services to one or more shareholders of the cooperative employing unit pursuant to an agreement described in paragraph (2)(A)(iii) between the shareholder and the cooperative employing unit.’.

    (b) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.