Employment Tax Improvement Act of 1992

Employment Tax Improvement Act of 1992 - Title I: Procedures Applicable to Determinations of Employment Status - Amends the Internal Revenue Code to revise rules and procedures for determining employment status. Provides that if: (1) the taxpayer did not treat an individual as an employee for any period; and (2) in the case of periods after December 31, 1978, all Federal tax returns (including information returns) filed by the taxpayer are filed on a basis consistent with the treatment of such individual as not being an employee, then for purposes of employment taxes, the individual shall be deemed not to be an employee of the taxpayer unless the taxpayer had no reasonable basis for not treating such individual as an employee. Provides limitations for certain past Internal Revenue Service employment tax audits.

Waives employment tax liability for reasonable good faith misclassifications based on common law rules.

Makes such revised rules for determining employment status applicable for income tax purposes.

Revises the employer's liability for employment taxes where the employer complies with reporting requirements.

Title II: Provisions to Increase Compliance - Increases the penalty for failure to file information returns which include amounts paid for services. Requires a separate statement of nonemployee compensation on such returns.

Requires backup withholding if the payor has not met taxpayer identification number verification requirements and payee notification requirements with respect to service payments.

Requires information returns on services paid of $100 or more (currently, $600 or more).