103D CONGRESS

2D SESSION H. R. 4278

AMENDMENT
In the Senate of the United States,

May 25 (legislative day, May 16), 1994.

Resolved, That the bill from the House of Representatives (H.R. 4278) entitled ‘‘An Act to make improvements in

the old-age, survivors, and disability insurance program

under title II of the Social Security Act’’, do pass with the

following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Social Security Domes3 tic Employment Reform Act of 1994’’.

4 SEC. 2. SIMPLIFICATION OF EMPLOYMENT TAXES ON DO5 MESTIC SERVICES.

6 (a) THRESHOLD REQUIREMENT FOR SOCIAL SECU7 RITY TAXES.—

8 (1) AMENDMENTS OF INTERNAL REVENUE

9 CODE.—

10 (A) GENERAL RULE.—Subparagraph (B) of

11 section 3121(a)(7) of the Internal Revenue Code

12 of 1986 (defining wages) is amended to read as

13 follows:

14 ‘‘(B) cash remuneration paid by an em15 ployer in any calendar year to an employee for
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1 domestic service in a private home of the em2 ployer (including domestic service described in

3 subsection (g)(5)), if the cash remuneration paid

4 in such year by the employer to the employee for

5 such service is less than the applicable dollar

6 threshold (as defined in subsection (x)) for such

7 year;’’.

8 (B) APPLICABLE DOLLAR THRESHOLD.—

9 Section 3121 of such Code is amended by adding

10 at the end thereof the following new subsection:

11 ‘‘(x) APPLICABLE DOLLAR THRESHOLD.—For pur12 poses of subsection (a)(7)(B), the term ‘applicable dollar

13 threshold’ means the amount required for a quarter of cov14 erage as determined under section 213(d)(2) of the Social

15 Security Act for calendar year 1995. In the case of calendar

16 years after 1995, the Secretary of Health and Human Serv17 ices shall adjust such amount at the same time and in the

18 same manner as the amount under section 213(d)(2) of the

19 Social Security Act, except that such adjustment shall not

20 take effect in any year in which the otherwise adjusted

21 amount does not exceed the amount in effect under this sub22 section for the preceding calendar year by at least $50.’’

23 (C) EMPLOYMENT OF DOMESTIC EMPLOYEES

24 UNDER AGE 18 EXCLUDED FROM COVERAGE.—
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1 Section 3121(b) of such Code (defining employ2 ment) is amended—

3 (i) by striking ‘‘or’’ at the end of para4 graph (19),

5 (ii) by striking the period at the end of

6 paragraph (20) and inserting ‘‘; or’’, and

7 (iii) by adding at the end the following

8 new paragraph:

9 ‘‘(21) domestic service in a private home of the

10 employer performed in any year by an individual

11 under the age of 18 during any portion of such

12 year.’’.

13 (D) CONFORMING AMENDMENTS.—The sec14 ond sentence of section 3102(a) of such Code is

15 amended—

16 (i) by striking ‘‘calendar quarter’’ each

17 place it appears and inserting ‘‘calendar

18 year’’, and

19 (ii) by striking ‘‘$50’’ and inserting

20 ‘‘the applicable dollar threshold (as defined

21 in section 3121(x)) for such year’’.

22 (2) AMENDMENT OF SOCIAL SECURITY ACT.—

23 (A) GENERAL RULE.—Subparagraph (B) of

24 section 209(a)(6) of the Social Security Act (42
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1 U.S.C. 409(a)(6)(B)) is amended to read as fol2 lows:

3 ‘‘(B) Cash remuneration paid by an employer in

4 any calendar year to an employee for domestic service

5 in a private home of the employer (including domes6 tic service described in section 210(f)(5)), if the cash

7 remuneration paid in such year by the employer to

8 the employee for such service is less than the applica9 ble dollar threshold (as defined in section 3121(x) of

10 the Internal Revenue Code of 1986) for such year;’’.

11 (B) EMPLOYMENT OF DOMESTIC EMPLOY12 EES UNDER AGE 18 EXCLUDED FROM COV13 ERAGE.—Section 210(a) of such Act (42 U.S.C.

14 410(a)) is amended—

15 (i) by striking ‘‘or’’ at the end of para16 graph (19),

17 (ii) by striking the period at the end of

18 paragraph (20) and inserting ‘‘; or’’, and

19 (iii) by adding at the end the following

20 new paragraph:

21 ‘‘(21) Domestic service in a private home of the

22 employer performed in any year by an individual

23 under the age of 18 during any portion of such

24 year.’’.

25 (3) EFFECTIVE DATES.—
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1 (A) IN GENERAL.—Except as provided in

2 subparagraph (B), the amendments made by this

3 subsection shall apply to remuneration paid in

4 calendar years beginning after December 31,

5 1994.

6 (B) EXCLUDED EMPLOYMENT.—The amend7 ments made by paragraphs (1)(C) and (2)(B)

8 shall apply to services performed after December

9 31, 1994.

10 (b) COORDINATION OF COLLECTION OF DOMESTIC

11 SERVICE EMPLOYMENT WITH COLLECTION OF INCOME

12 TAXES.—

13 (1) IN GENERAL.—Chapter 25 of the Internal

14 Revenue Code of 1986 (relating to general provisions

15 relating to employment taxes) is amended by adding

16 at the end thereof the following new section:

17 ‘‘SEC. 3510. COORDINATION OF COLLECTION OF DOMESTIC

18 SERVICE EMPLOYMENT TAXES WITH COLLEC19 TION OF INCOME TAXES.

20 ‘‘(a) GENERAL RULE.—Except as otherwise provided

21 in this section—

22 ‘‘(1) returns with respect to domestic service em23 ployment taxes shall be made on a calendar year

24 basis,
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1 ‘‘(2) any such return for any calendar year shall

2 be filed on or before the 15th day of the 4th month

3 following the close of the employer’s taxable year

4 which begins in such calendar year, and

5 ‘‘(3) no requirement to make deposits (or to pay

6 installments under section 6157) shall apply with re7 spect to such taxes.

8 ‘‘(b) DOMESTIC SERVICE EMPLOYMENT TAXES SUB9 JECT TO ESTIMATED TAX PROVISIONS.—

10 ‘‘(1) IN GENERAL.—Solely for purposes of section

11 6654, domestic service employment taxes imposed

12 with respect to any calendar year shall be treated as

13 a tax imposed by chapter 2 for the taxable year of the

14 employer which begins in such calendar year.

15 ‘‘(2) SPECIAL RULE WHERE TAXES ARE PAID ON

16 OR BEFORE APRIL 15.—If, on or before the date de17 scribed in subsection (a)(2) or, if earlier, the date the

18 return is filed, the employer pays in full the domestic

19 service employment taxes computed on such return as

20 payable for any calendar year, then no addition to

21 tax shall be imposed under section 6654(a) with re22 spect to any underpayment of any required install23 ment of such taxes for the taxable year beginning in

24 such calendar year.
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1 ‘‘(3) ANNUALIZATION.—Under regulations pre2 scribed by the Secretary, appropriate adjustments

3 shall be made in the application of section 6654(d)(2)

4 in respect of the amount treated as tax under para5 graph (1).

6 ‘‘(4) TRANSITIONAL RULE.—For purposes of ap7 plying section 6654 to a taxable year beginning in

8 1995, the amount referred to in clause (ii) of section

9 6654(d)(1)(B) shall be increased by 90 percent of the

10 amount treated as tax under paragraph (1) for such

11 preceding taxable year.

12 ‘‘(c) DOMESTIC SERVICE EMPLOYMENT TAXES.—For

13 purposes of this section, the term ‘domestic service employ14 ment taxes’ means—

15 ‘‘(1) any taxes imposed by chapter 21 or 23 on

16 remuneration paid for domestic service in a private

17 home of the employer, and

18 ‘‘(2) any amount withheld from such remunera19 tion pursuant to an agreement under section 3402(p).

20 For purposes of this subsection, the term ‘domestic service

21 in a private home of the employer’ includes domestic service

22 described in section 3121(g)(5).

23 ‘‘(d) EXCEPTION WHERE EMPLOYER LIABLE FOR

24 OTHER EMPLOYMENT TAXES.—To the extent provided in

25 regulations prescribed by the Secretary, this section shall
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1 not apply to any employer for any calendar year if such

2 employer is liable for any tax under this subtitle with re3 spect to remuneration for services other than domestic serv4 ice in a private home of the employer.

5 ‘‘(e) GENERAL REGULATORY AUTHORITY.—The Sec6 retary shall prescribe such regulations as may be necessary

7 or appropriate to carry out the purposes of this section.

8 Such regulations may treat domestic service employment

9 taxes as taxes imposed by chapter 1 for purposes of coordi10 nating the assessment and collection of such employment

11 taxes with the assessment and collection of domestic employ12 ers’ income taxes.

13 ‘‘(f) AUTHORITY TO ENTER INTO AGREEMENTS TO

14 COLLECT STATE UNEMPLOYMENT TAXES.—

15 ‘‘(1) IN GENERAL.—The Secretary is hereby au16 thorized to enter into an agreement with any State to

17 collect, as the agent of such State, such State’s unem18 ployment taxes imposed on remuneration paid for do19 mestic service in a private home of the employer. Any

20 taxes to be collected by the Secretary pursuant to such

21 an agreement shall be treated as domestic service em22 ployment taxes for purposes of this section.

23 ‘‘(2) TRANSFERS TO STATE ACCOUNT.—Any

24 amount collected under an agreement referred to in

25 paragraph (1) shall be transferred by the Secretary to
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1 the account of the State in the Unemployment Trust

2 Fund.

3 ‘‘(3) SUBTITLE F MADE APPLICABLE.—For pur4 poses of subtitle F, any amount required to be col5 lected under an agreement under paragraph (1) shall

6 be treated as a tax imposed by chapter 23.

7 ‘‘(4) STATE.—For purposes of this subsection,

8 the term ‘State’ has the meaning given such term by

9 section 3306(j)(1).’’

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions for chapter 25 of such Code is amended by add12 ing at the end thereof the following:

‘‘Sec. 3510. Coordination of collection of domestic service employment taxes with collection of income taxes.’’

13 (3) EFFECTIVE DATE.—The amendments made

14 by this subsection shall apply to remuneration paid

15 in calendar years beginning after December 31, 1994.

16 (4) EXPANDED INFORMATION TO EMPLOYERS.—

17 The Secretary of the Treasury or his delegate shall

18 prepare and make available information on the Fed19 eral tax obligations of employers with respect to em20 ployees performing domestic service in a private home

21 of the employer. Such information shall also include

22 a statement that such employers may have obligations

23 with respect to such employees under State laws relat-
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1 ing to unemployment insurance and workers com2 pensation.

3 SEC. 3. ADDITIONAL DEBT COLLECTION PRACTICES.

4 (a) IN GENERAL.—Section 204 of the Social Security

5 Act (42 U.S.C. 404) is amended by adding at the end the

6 following new subsection:

7 ‘‘(f)(1) With respect to any delinquent amount, the

8 Secretary may use the collection practices described in sec9 tions 3711(f), 3716, and 3718 of title 31, United States

10 Code, as in effect on April 1, 1994.

11 ‘‘(2) For purposes of paragraph (1), the term ‘delin12 quent amount’ means an amount—

13 ‘‘(A) in excess of the correct amount of payment

14 under this title;

15 ‘‘(B) paid to a person after such person has at16 tained 18 years of age; and

17 ‘‘(C) determined by the Secretary, under regula18 tions, to be otherwise unrecoverable under this section

19 after such person ceases to be a beneficiary under this

20 title.’’.

21 (b) CONFORMING AMENDMENT.—Section 3701(d) of

22 title 31, United States Code, is amended by inserting ‘‘,

23 except to the extent provided under section 204(f) of such

24 Act (42 U.S.C. 404(f)),’’ after ‘‘the Social Security Act (42

25 U.S.C. 301 et seq.)’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to collection activities begun on or after

3 the date of the enactment of this Act and before October

4 1, 1999.

5 SEC. 4. PROHIBITION ON PAYMENT OF BENEFITS TO CER6 TAIN INDIVIDUALS CONFINED BY COURT

7 ORDER TO PUBLIC INSTITUTIONS.

8 (a) IN GENERAL.—Section 202(x)(1) of the Social Se9 curity Act (42 U.S.C. 402(x)(1)) is amended—

10 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’, and

11 (2) by adding at the end the following new sub12 paragraph:

13 ‘‘(B) Notwithstanding any other provision of this title,

14 no monthly benefits shall be paid under this section or

15 under section 223 to any individual for any month during

16 which such individual is confined in any public institution

17 by a court order pursuant to a verdict or finding that the

18 individual is—

19 ‘‘(i) guilty of an offense described in subpara20 graph (A), but insane (or having a similar condition,

21 such as a mental disease, a mental defect, or mental

22 incompetence); or

23 ‘‘(ii) not guilty of such an offense by reason of

24 insanity (or by reason of a similar finding, such as
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1 a mental disease, a mental defect, or mental incom2 petence).’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 202(x)(3) of the Social Security Act

5 (42 U.S.C. 402(x)(3)) is amended by striking ‘‘any

6 individual’’ and all that follows and inserting ‘‘any

7 individual confined as described in paragraph (1) if

8 the jail, prison, penal institution, correctional facil9 ity, or other public institution to which such individ10 ual is so confined is under the jurisdiction of such

11 agency and the Secretary requires such information

12 to carry out the provisions of this section.’’.

13 (2) The heading for section 202(x) of such Act is

14 amended by inserting ‘‘and Certain Other Inmates of

15 Public Institutions’’ after ‘‘Prisoners’’.

16 (c) EFFECTIVE DATE.—The amendments made by this

17 section shall apply with respect to benefits for months com18 mencing after 90 days after the date of the enactment of

19 this Act.

20 SEC. 5. NURSING HOMES REQUIRED TO REPORT ADMIS21 SIONS OF SSI RECIPIENTS.

22 (a) IN GENERAL.—Section 1631(e)(1) (42 U.S.C.

23 1383(e)(1)) is amended by adding at the end the following

24 new subparagraph:
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1 ‘‘(C) For purposes of making determinations under

2 section 1611(e), the requirements prescribed by the Sec3 retary pursuant to subparagraph (A) shall require each ad4 ministrator of a nursing home, extended care facility, or

5 intermediate care facility to report to the Secretary of the

6 admission of any eligible individual or eligible spouse

7 receiving benefits under this title within 2 weeks of such

8 admission.’’.

9 (b) EFFECTIVE DATE.—The amendment made by sub10 section (a) shall apply to admissions occurring on or after

11 October 1, 1995.

Attest:

Secretary.
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