A bill to exclude service of election officials and election workers from the Social Security payroll tax.

Summary: Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act and the Internal Revenue Code to raise the social security payroll tax exemption for State and local election officials and workers and index the exempt amount beginning in 1993.

SECTION 1. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF ELECTION 
              OFFICIALS OR ELECTION WORKERS FROM COVERAGE.

    (a) Limitation on Mandatory Coverage of State Election Officials 
and Election Workers Without State Retirement System.--
            (1) Amendment to social security act.--Section 
        210(a)(7)(F)(iv) of the Social Security Act (42 U.S.C. 
        410(a)(7)(F)(iv)) (as amended by section 11332(a) of the 
        Omnibus Budget Reconciliation Act of 1990) is amended by 
        striking ``$100'' and inserting ``$500 with respect to service 
        performed during 1994, and the exempt remuneration amount 
        determined under section 218(c)(8)(B) with respect to service 
        performed thereafter''.
            (2) Amendment to fica.--Section 3121(b)(7) of the Internal 
        Revenue Code of 1986 (as amended by section 11332(b) of the 
        Omnibus Budget Reconciliation Act of 1990) is amended by 
        striking ``$100'' and inserting ``$500 with respect to service 
        performed during 1993, and the exempt remuneration amount 
        determined under section 218(c)(8)(B) of the Social Security 
        Act with respect to service performed thereafter''.
    (b) Conforming Amendments Relating to Medicare Qualified Government 
Employment.--
            (1) Amendment to social security act.--Section 210(p)(2)(E) 
        of the Social Security Act (42 U.S.C. 410(p)(2)(E)) is amended 
        by striking ``$100'' and inserting ``$500 with respect to 
        service performed during 1993, and the exempt remuneration 
        amount determined under section 218(c)(8)(B) with respect to 
        service performed thereafter''.
            (2) Amendment to fica.--Section 3121(u)(2)(B)(ii)(V) of the 
        Internal Revenue Code of 1986 is amended by striking ``$100'' 
        and inserting ``$500 with respect to service performed during 
        1993, and the exempt remuneration amount determined under 
        section 218(c)(8)(B) of the Social Security Act with respect to 
        service performed thereafter''.
    (c) Authority for States To Modify Coverage Agreements With Respect 
to Election Officials and Election Workers.--Section 218(c)(8) of the 
Social Security Act (42 U.S.C. 418(c)(8)) is amended--
            (1) by striking ``on or after January 1, 1968,'' and 
        inserting ``at any time'';
            (2) by striking ``$100'' and inserting ``$500 with respect 
        to service performed during 1993, and the exempt remuneration 
        amount determined under subparagraph (B) with respect to 
        service performed thereafter''; and
            (3) by striking the last sentence and inserting the 
        following new sentence: ``Any modification of an agreement 
        pursuant to this paragraph shall be effective with respect to 
        services performed in and after the calendar year in which the 
        modification is mailed or delivered by other means to the 
        Secretary.''.
    (d) Indexation of Exempt Remuneration Amount.--
            (1) In general.--Section 218(c)(8) of the Social Security 
        Act (as amended by subsection (c)) is further amended--
                    (A) by inserting ``(A)'' after ``(8)''; and
                    (B) by adding at the end the following new 
                subparagraphs:
    ``(B) The Secretary shall, on or before November 1 of 1993 and of 
every year thereafter, determine and publish in the Federal Register 
the exempt remuneration amount which shall be effective with respect to 
service performed during the following calendar year.
    ``(C) The exempt remuneration amount determined under subparagraph 
(B) shall be the larger of--
            ``(i) the dollar amount in effect under subparagraph (A) 
        with respect to service performed during the calendar year in 
        which the determination under subparagraph (B) is made, or
            ``(ii) the product of--
                    ``(I) $500, and
                    ``(II) the indexing ratio described in subparagraph 
                (D).
    ``(D) For purposes of subparagraph (C)(ii)(II), the indexing ratio 
is the ratio of--
            ``(i) the deemed average total wages (as defined in section 
        209(k)(1)) for the calendar year before the calendar year in 
        which the determination under subparagraph (B) is made, to
            ``(ii) the average of the total wages (as defined in 
        regulations of the Secretary and computed without regard to the 
        limitations specified in section 209(a)(1)) reported to the 
        Secretary of the Treasury or his delegate for 1991 (as 
        published in the Federal Register in accordance with section 
        215(a)(1)(D)),
with such product, if not a multiple of $100, being rounded to the next 
higher multiple of $100 where such product is a multiple of $50 but not 
of $100 and to the nearest multiple of $100 in any other case.''.
            (2) Conforming amendment.--Section 209(k)(1) of such Act 
        (42 U.S.C. 409(k)(1)) is amended by inserting 
        ``218(c)(8)(D)(i),'' after ``215(b)(3)(A)(ii),''.
    (e) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall apply with respect to service performed on or after 
January 1, 1993.