A bill to amend section 530 of the Revenue Act of 1978 to clarify the Federal income and employment tax treatment of providers of technical services through third party arrangements, and for other purposes.

Amends the Revenue Act of 1978 with respect to the employment status, for income and employment tax purposes, of providers of technical services, such as engineering, drafting, and computer programming, under third-party arrangements.

Declares that the service provider will not be considered as an employee of the broker or service recipient and the broker or service recipient will not be treated as an employer of the service provider if: (1) the services are provided in accordance with a qualified written contract between the provider and the broker; and (2) the provider provides no more than 18 months of substantial continuous services for the same recipient.

Applies these provisions only if the broker elects such application and does not compensate the provider when not providing services during the relevant time period. Treats the broker as the employer for withholding tax purposes, requiring tax withholding at the rate of ten percent of payments to the provider for the technical services.