I

103D CONGRESS

1ST SESSION H. R. 528

To amend the Internal Revenue Code of 1986 to clarify the employment

status of certain fishermen.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 21, 1993

Mr. NEAL of Massachusetts (for himself and Mr. FRANK of Massachusetts)

introduced the following bill; which was referred to the Committee on

Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to clarify

the employment status of certain fishermen.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CLARIFICATION OF EMPLOYMENT TAX STATUS

4 OF CERTAIN FISHERMEN.

5 (a) AMENDMENTS OF INTERNAL REVENUE CODE OF

6 1986.—

7 (1) DETERMINATION OF SIZE OF CREW.—Sub8 section (b) of section 3121 of the Internal Revenue

9 Code of 1986 (defining employment) is amended by
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1 adding at the end thereof the following new sen2 tence:

3 ‘‘For purposes of paragraph (20), the operating crew of

4 a boat shall be treated as normally made up of fewer than

5 10 individuals if the average size of the operating crew

6 on trips made during the preceding 4 calendar quarters

7 consisted of fewer than 10 individuals.’’

8 (2) CERTAIN CASH REMUNERATION PER9 MITTED.—Subparagraph (A) of section 3121(b)(20)

10 of such Code is amended to read as follows:

11 ‘‘(A) such individual does not receive any

12 cash remuneration other than as provided in

13 subparagraph (B) and other than cash remu14 neration—

15 ‘‘(i) which does not exceed $100 per

16 trip;

17 ‘‘(ii) which is contingent on a mini18 mum catch; and

19 ‘‘(iii) which is paid solely for addi20 tional duties (such as mate, engineer, or

21 cook) for which additional cash remunera22 tion is traditional in the industry.’’

23 (3) CONFORMING AMENDMENT.—Section

24 6050A(a) of such Code is amended by striking

25 ‘‘and’’ at the end of paragraph (3), by striking the
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1 period at the end of paragraph (4) and inserting ‘‘;

2 and’’, and by adding at the end thereof the following

3 new paragraph:

4 ‘‘(5) any cash remuneration described in section

5 3121(b)(20)(A).’’

6 (b) AMENDMENT OF SOCIAL SECURITY ACT.—

7 (1) DETERMINATION OF SIZE OF CREW.—Sub8 section (a) of section 210 of the Social Security Act

9 is amended by adding at the end thereof the follow10 ing new sentence:

11 ‘‘For purposes of paragraph (20), the operating crew of

12 a boat shall be treated as normally made up of fewer than

13 10 individuals if the average size of the operating crew

14 on trips made during the preceding 4 calendar quarters

15 consisted of fewer than 10 individuals.’’

16 (2) CERTAIN CASH REMUNERATION PER17 MITTED.—Subparagraph (A) of section 210(a)(20)

18 of such Act is amended to read as follows:

19 ‘‘(A) such individual does not receive any

20 additional compensation other than as provided

21 in subparagraph (B) and other than cash remu22 neration—

23 ‘‘(i) which does not exceed $100 per

24 trip;
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1 ‘‘(ii) which is contingent on a mini2 mum catch; and

3 ‘‘(iii) which is paid solely for addi4 tional duties (such as mate, engineer, or

5 cook) for which additional cash remunera6 tion is traditional in the industry.’’

7 (c) EFFECTIVE DATE.—

8 (1) IN GENERAL.—The amendments made by

9 this section shall apply to remuneration paid after

10 December 31, 1993.

11 (2) SPECIAL RULE.—The amendments made by

12 this section (other than subsection (a)(3)) shall also

13 apply to remuneration paid after December 31,

14 1984, and before January 1, 1994, unless the payor

15 treated such remuneration (when paid) as being sub16 ject to tax under chapter 21 of the Internal Revenue

17 Code of 1986.

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