Social Security Domestic Employment Reform Act of 1994

Summary: Social Security Domestic Employment Reform Act of 1994 - Amends the Internal Revenue Code and title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to change the threshold (currently, $50 a quarter) at which cash remuneration for domestic services becomes subject to social security employment taxes to an applicable dollar amount required for a quarter of coverage under title II. Excludes the employment of domestic employees under age 18 from such coverage. 
Sets forth rules for filing returns with respect to domestic service employment taxes and requires such returns to be made on a calendar year basis. 
Exempts such taxes from estimated tax provisions. 
Makes filing requirements inapplicable to any employer liable for tax concerning remuneration for services other than domestic service in a private home. 
Authorizes the Secretary of the Treasury to enter into agreements with States to collect the State unemployment tax imposed on remuneration for domestic service and transfer such amounts to a State's account in the Unemployment Trust Fund. 
Authorizes the Social Security Administration to use certain debt collection practices available to other Federal agencies. 
Prohibits the payment of OASDI benefits to certain individuals confined to public institutions by court order as a result of felony verdicts of guilty but insane (or mentally incompetent) or not guilty by reason of insanity (or mental incompetence). 
Requires nursing home administrators to timely report the admission of any social security recipient to the Social Security Administration.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Domestic Employment 
Reform Act of -1-9-9-3 1994''.

SEC. 2. SIMPLIFICATION OF EMPLOYMENT TAXES ON DOMESTIC SERVICES.

    (a) Threshold Requirement for Social Security Taxes.--
            (1) Amendments of internal revenue code.--
                    (A) General rule.--Subparagraph (B) of section 
                3121(a)(7) of the Internal Revenue Code of 1986 
                (defining wages) is amended to read as follows:
                    ``(B) cash remuneration paid by an employer in any 
                calendar year to an employee for domestic service in a 
                private home of the employer (-o-t-h-e-r -t-h-a-n 
                -s-e-r-v-i-c-e including domestic service described in 
                subsection (g)(5)), if the cash remuneration paid in 
                such year by the employer to the employee for such 
                service is less than the applicable dollar threshold 
                (as defined in subsection (-y x)) for such year;''.
                    (B) Applicable dollar threshold.--Section 3121 of 
                such Code is amended by adding at the end thereof the 
                following new subsection:
    ``(-y x) Applicable Dollar Threshold.--For purposes of subsection 
(a)(7)(B), the term `applicable dollar threshold' means the amount 
required for a quarter of coverage as determined under section 
213(d)(2) of the Social Security Act for calendar year -1-9-9-4 1995. 
In the case of calendar years after -1-9-9-4 1995, the Secretary of 
Health and Human Services shall adjust such amount at the same time and 
in the same manner as the amount under section 213(d)(2) of the Social 
Security Act, except that such adjustment shall not take effect in any 
year in which the otherwise adjusted amount does not exceed the amount 
in effect under this subsection for the preceding calendar year by at 
least $50.''
                    (C) Employment of domestic employees under age 18 
                excluded from coverage.--Section 3121(b) of such Code 
                (defining employment) is amended--
                            (i) by striking ``or'' at the end of 
                        paragraph (19),
                            (ii) by striking the period at the end of 
                        paragraph (20) and inserting ``; or'', and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(21) domestic service in a private home of the employer 
        performed in any year by an individual under the age of 18 
        during any portion of such year.''.
                    (D) Conforming amendments.--The second sentence of 
                section 3102(a) of such Code is amended--
                            (i) by striking ``calendar quarter'' each 
                        place it appears and inserting ``calendar 
                        year'', and
                            (ii) by striking ``$50'' and inserting 
                        ``the applicable dollar threshold (as defined 
                        in section 3121(-y x)) for such year''.
            (2) Amendment of social security act.--
                    (A) General rule.--Subparagraph (B) of section 
                209(a)(6) of the Social Security Act (42 U.S.C. 
                409(a)(6)(B)) is amended to read as follows:
            ``(B) Cash remuneration paid by an employer in any calendar 
        year to an employee for domestic service in a private home of 
        the employer (-o-t-h-e-r -t-h-a-n -s-e-r-v-i-c-e including 
        domestic service described in -s-u-b-s-e-c-t-i-o-n -(-g-)-(-5-) 
        section 210(f)(5)), if the cash remuneration paid in such year 
        by the employer to the employee for such service is less than 
        the applicable dollar threshold (as defined in section 3121(-y 
        x) of the Internal Revenue Code of 1986) for such year;''.
                    (B) Employment of domestic employees under age 18 
                excluded from coverage.--Section 210(a) of such Act (42 
                U.S.C. 410(a)) is amended--
                            (i) by striking ``or'' at the end of 
                        paragraph (19),
                            (ii) by striking the period at the end of 
                        paragraph (20) and inserting ``; or'', and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(21) -d-o-m-e-s-t-i-c Domestic service in a private home 
        of the employer performed in any year by an individual under 
        the age of 18 during any portion of such year.''.
            -(-3-) -E-f-f-e-c-t-i-v-e -d-a-t-e-.----T-h-e 
        -a-m-e-n-d-m-e-n-t-s -m-a-d-e -b-y -t-h-i-s 
        -s-u-b-s-e-c-t-i-o-n -s-h-a-l-l -a-p-p-l-y -t-o 
        -r-e-m-u-n-e-r-a-t-i-o-n -p-a-i-d -i-n -c-a-l-e-n-d-a-r 
        -y-e-a-r-s -b-e-g-i-n-n-i-n-g -a-f-t-e-r -D-e-c-e-m-b-e-r 
        -3-1-, -1-9-9-3-.
            (3) Effective dates.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by this subsection shall apply 
                to remuneration paid in calendar years beginning after 
                December 31, 1994.
                    (B) Excluded employment.--The amendments made by 
                paragraphs (1)(C) and (2)(B) shall apply to services 
                performed after December 31, 1994.
    (b) Coordination of Collection of Domestic Service Employment With 
Collection of Income Taxes.--
            (1) In general.--Chapter 25 of the Internal Revenue Code of 
        1986 (relating to general provisions relating to employment 
        taxes) is amended by adding at the end thereof the following 
        new section:

``SEC. 3510. COORDINATION OF COLLECTION OF DOMESTIC SERVICE EMPLOYMENT 
              TAXES WITH COLLECTION OF INCOME TAXES.

    ``(a) General Rule.--Except as otherwise provided in this section--
            ``(1) returns with respect to domestic service employment 
        taxes shall be made on a calendar year basis,
            ``(2) any such return for any calendar year shall be filed 
        on or before the 15th day of the 4th month following the close 
        of the employer's taxable year which begins in such calendar 
        year, and
            ``(3) no requirement to make deposits (or to pay 
        installments under section 6157) shall apply with respect to 
        such taxes.
    ``(b) Domestic Service Employment Taxes Subject to Estimated Tax 
Provisions.--
            ``(1) In general.--Solely for purposes of section 6654, 
        domestic service employment taxes imposed with respect to any 
        calendar year shall be treated as a tax imposed by chapter 2 
        for the taxable year of the employer which begins in such 
        calendar year.
            ``(2) Special rule where taxes are paid on or before april 
        15.--If, on or before the date described in subsection (a)(2) 
        or, if earlier, the date the return is filed, the employer pays 
        in full the domestic service employment taxes computed on such 
        return as payable for any calendar year, then no addition to 
        tax shall be imposed under section 6654(a) with respect to any 
        underpayment of any required installment of such taxes for the 
        taxable year beginning in such calendar year.
            ``(3) Annualization.--Under regulations prescribed by the 
        Secretary, appropriate adjustments shall be made in the 
        application of section 6654(d)(2) in respect of the amount 
        treated as tax under paragraph (1).
            ``(4) Transitional rule.--For purposes of applying section 
        6654 to a taxable year beginning in -1-9-9-4 1995, the amount 
        referred to in clause (ii) of section 6654(d)(1)(B) shall be 
        increased by 90 percent of the amount treated as tax under 
        paragraph (1) for such preceding taxable year.
    ``(c) Domestic Service Employment Taxes.--For purposes of this 
section, the term `domestic service employment taxes' means--
            ``(1) any taxes imposed by chapter 21 or 23 on remuneration 
        paid for domestic service in a private home of the employer, 
        and
            ``(2) any amount withheld from such remuneration pursuant 
        to an agreement under section 3402(p).
For purposes of this subsection, the term `domestic service in a 
private home of the employer' -d-o-e-s -n-o-t -i-n-c-l-u-d-e 
-s-e-r-v-i-c-e includes domestic service described in section 
3121(g)(5).
    ``(d) Exception Where Employer Liable for Other Employment Taxes.--
To the extent provided in regulations prescribed by the Secretary, this 
section shall not apply to any employer for any calendar year if such 
employer is liable for any tax under this subtitle with respect to 
remuneration for services other than domestic service in a private home 
of the employer.
    ``(e) General Regulatory Authority.--The Secretary shall prescribe 
such regulations as may be necessary or appropriate to carry out the 
purposes of this section. Such regulations may treat domestic service 
employment taxes as taxes imposed by chapter 1 for purposes of 
coordinating the assessment and collection of such employment taxes 
with the assessment and collection of domestic employers' income taxes.
    ``(f) Authority To Enter Into Agreements To Collect State 
Unemployment Taxes.--
            ``(1) In general.--The Secretary is hereby authorized to 
        enter into an agreement with any State to collect, as the agent 
        of such State, such State's unemployment taxes imposed on 
        remuneration paid for domestic service in a private home of the 
        employer. Any taxes to be collected by the Secretary pursuant 
        to such an agreement shall be treated as domestic service 
        employment taxes for purposes of this section.
            ``(2) Transfers to state account.--Any amount collected 
        under an agreement referred to in paragraph (1) shall be 
        transferred by the Secretary to the account of the State in the 
        Unemployment Trust Fund.
            ``(3) Subtitle f made applicable.--For purposes of subtitle 
        F, any amount required to be collected under an agreement under 
        paragraph (1) shall be treated as a tax imposed by chapter 23.
            ``(4) State.--For purposes of this subsection, the term 
        `State' has the meaning given such term by section 
        3306(j)(1).''
            (2) Clerical amendment.--The table of sections for chapter 
        25 of such Code is amended by adding at the end thereof the 
        following:

                              ``Sec. 3510. Coordination of collection 
                                        of domestic service employment 
                                        taxes with collection of income 
                                        taxes.''
            (3) Effective date.--The amendments made by this subsection 
        shall apply to remuneration paid in calendar years beginning 
        after December 31, -1-9-9-3 1994.
            (4) Expanded information to employers.--The Secretary of 
        the Treasury or his delegate shall prepare and make available 
        information on the Federal tax obligations of employers with 
        respect to employees performing domestic service in a private 
        home of the employer. Such information shall also include a 
        statement that such employers may have obligations with respect 
        to such employees under State laws relating to unemployment 
        insurance and workers compensation.

SEC. 3. ADDITIONAL DEBT COLLECTION PRACTICES.

    (a) In General.--Section 204 of the Social Security Act (42 U.S.C. 
404) is amended by adding at the end the following new subsection:
    ``(f)(1) With respect to any delinquent amount, the Secretary may 
use the collection practices described in sections 3711(f), 3716, and 
3718 of title 31, United States Code, as in effect on April 1, 1994.
    ``(2) For purposes of paragraph (1), the term `delinquent amount' 
means an amount--
            ``(A) in excess of the correct amount of payment under this 
        title;
            ``(B) paid to a person after such person has attained 18 
        years of age; and
            ``(C) determined by the Secretary, under regulations, to be 
        otherwise unrecoverable under this section after such person 
        ceases to be a beneficiary under this title.''.
    (b) Conforming Amendment.--Section 3701(d) of title 31, United 
States Code, is amended by inserting ``, except to the extent provided 
under section 204(f) of such Act (42 U.S.C. 404(f)),'' after ``the 
Social Security Act (42 U.S.C. 301 et seq.)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to collection activities begun on or after the date of the 
enactment of this Act and before October 1, 1999.

SEC. 4. PROHIBITION ON PAYMENT OF BENEFITS TO CERTAIN INDIVIDUALS 
              CONFINED BY COURT ORDER TO PUBLIC INSTITUTIONS.

    (a) In General.--Section 202(x)(1) of the Social Security Act (42 
U.S.C. 402(x)(1)) is amended--
            (1) by inserting ``(A)'' after ``(1)'', and
            (2) by adding at the end the following new subparagraph:
    ``(B) Notwithstanding any other provision of this title, no monthly 
benefits shall be paid under this section or under section 223 to any 
individual for any month during which such individual is confined in 
any public institution by a court order pursuant to a verdict or 
finding that the individual is--
            ``(i) guilty of an offense described in subparagraph (A), 
        but insane (or having a similar condition, such as a mental 
        disease, a mental defect, or mental incompetence); or
            ``(ii) not guilty of such an offense by reason of insanity 
        (or by reason of a similar finding, such as a mental disease, a 
        mental defect, or mental incompetence).''.
    (b) Conforming Amendments.--
            (1) Section 202(x)(3) of the Social Security Act (42 U.S.C. 
        402(x)(3)) is amended by striking ``any individual'' and all 
        that follows and inserting ``any individual confined as 
        described in paragraph (1) if the jail, prison, penal 
        institution, correctional facility, or other public institution 
        to which such individual is so confined is under the 
        jurisdiction of such agency and the Secretary requires such 
        information to carry out the provisions of this section.''.
            (2) The heading for section 202(x) of such Act is amended 
        by inserting ``and Certain Other Inmates of Public 
        Institutions'' after ``Prisoners''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to benefits for months commencing after 90 days 
after the date of the enactment of this Act.

SEC. 5. NURSING HOMES REQUIRED TO REPORT ADMISSIONS OF SSI RECIPIENTS.

    (a) In General.--Section 1631(e)(1) (42 U.S.C. 1383(e)(1)) is 
amended by adding at the end the following new subparagraph:
    ``(C) For purposes of making determinations under section 1611(e), 
the requirements prescribed by the Secretary pursuant to subparagraph 
(A) shall require each administrator of a nursing home, extended care 
facility, or intermediate care facility to report to the Secretary of 
the admission of any eligible individual or eligible spouse receiving 
benefits under this title within 2 weeks of such admission.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to admissions occurring on or after October 1, 1995.