TREATMENT OF LEASED EMPLOYEES.

SEC. 1454. TREATMENT OF LEASED EMPLOYEES. (a) General Rule.— Subparagraph (C) of section 414(n)(2) (defining leased employee) is amended to read as follows: “(C) such services are performed under primary direction or control by the recipient.”. (b) Effective Date.— The amendment made by subsection (a) shall apply to years beginning after December 31, 1996, but shall not apply to any relationship determined under an Internal Revenue Service ruling issued before the date of the enactment of This Act pursuant to section 414(n)(2)(C) of the Internal Revenue Code of 1986 (as in effect on the day before such date) not to involve a leased employee.