Calendar No. 415

103D CONGRESS

2D SESSION S. 1231

[Report No. 103–252]

A BILL

taxes on domestic services, and for other purposes.

To provide for simplified collection of employment

APRIL 19 (legislative day, APRIL 11), 1994

Report with amendments
II

Calendar No. 415

103D CONGRESS

2D SESSION S. 1231

[Report No. 103–252]

To provide for simplified collection of employment taxes on domestic services,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 14 (legislative day, JUNE 30), 1993

Mr. MOYNIHAN (for himself, Mr. DOLE, Mr. BOREN, Mr. WALLOP, Mr.

GRASSLEY, Mr. CHAFEE, Mr. BREAUX, Mrs. MURRAY, Mr. ROCKEFELLER, Mr. PACKWOOD, Mr. MATHEWS, Mr. MITCHELL, Mr. CONRAD,

Mr. RIEGLE, Mr. HATCH, and Mr. CAMPBELL) introduced the following

bill; which was read twice and referred to the Committee on Finance

APRIL 19 (legislative day, APRIL 11), 1994

Reported by Mr. MOYNIHAN, with amendments

[Omit the part struck through and insert the part printed in italic]

A BILL

To provide for simplified collection of employment taxes on

domestic services, and for other purposes.

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

2 This Act may be cited as the ‘‘Social Security Domes3 tic Employment Reform Act of 1993 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)

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

12 Code of 1986 (defining wages) is amended to

13 read as follows:

14 ‘‘(B) cash remuneration paid by an em15 ployer in any calendar year to an employee for

16 domestic service in a private home of the em17 ployer (other than service including domestic

18 service described in subsection (g)(5)), if the

19 cash remuneration paid in such year by the em20 ployer to the employee for such service is less

21 than the applicable dollar threshold (as defined

22 in subsection (y x)) for such year;’’.

23 (B) APPLICABLE DOLLAR THRESHOLD.—

24 Section 3121 of such Code is amended by add25 ing at the end thereof the following new sub26 section:
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1 ‘‘(y x) APPLICABLE DOLLAR THRESHOLD.—For pur2 poses of subsection (a)(7)(B), the term ‘applicable dollar

3 threshold’ means the amount required for a quarter of cov4 erage as determined under section 213(d)(2) of the Social

5 Security Act for calendar year 1994 1995. In the case of

6 calendar years after 1994 1995, the Secretary of Health

7 and Human Services shall adjust such amount at the same

8 time and in the same manner as the amount under section

9 213(d)(2) of the Social Security Act, except that such ad10 justment shall not take effect in any year in which the

11 otherwise adjusted amount does not exceed the amount

12 in effect under this subsection for the preceding calendar

13 year by at least $50.’’

14 (C) EMPLOYMENT OF DOMESTIC EMPLOY15 EES UNDER AGE 18 EXCLUDED FROM COV16 ERAGE.—Section 3121(b) of such Code (defin17 ing employment) is amended—

18 (i) by striking ‘‘or’’ at the end of

19 paragraph (19),

20 (ii) by striking the period at the end

21 of paragraph (20) and inserting ‘‘; or’’,

22 and

23 (iii) by adding at the end the follow24 ing new paragraph:
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1 ‘‘(21) domestic service in a private home of the

2 employer performed in any year by an individual

3 under the age of 18 during any portion of such

4 year.’’.

5 (D) CONFORMING AMENDMENTS.—The

6 second sentence of section 3102(a) of such

7 Code is amended—

8 (i) by striking ‘‘calendar quarter’’

9 each place it appears and inserting ‘‘cal10 endar year’’, and

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

12 ‘‘the applicable dollar threshold (as defined

13 in section 3121(y x)) for such year’’.

14 (2) AMENDMENT OF SOCIAL SECURITY ACT.—

15 (A) GENERAL RULE.—Subparagraph (B)

16 of section 209(a)(6) of the Social Security Act

17 (42 U.S.C. 409(a)(6)(B)) is amended to read as

18 follows:

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

20 any calendar year to an employee for domestic serv21 ice in a private home of the employer (other than

22 service including domestic service described in sub23 section (g)(5) section 210(f)(5)), if the cash remu24 neration paid in such year by the employer to the

25 employee for such service is less than the applicable
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1 dollar threshold (as defined in section 3121(y x) of

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

3 (B) EMPLOYMENT OF DOMESTIC EMPLOY4 EES UNDER AGE 18 EXCLUDED FROM COV5 ERAGE.—Section 210(a) of such Act (42 U.S.C.

6 410(a)) is amended—

7 (i) by striking ‘‘or’’ at the end of

8 paragraph (19),

9 (ii) by striking the period at the end

10 of paragraph (20) and inserting ‘‘; or’’,

11 and

12 (iii) by adding at the end the follow13 ing new paragraph:

14 ‘‘(21) domestic Domestic service in a private

15 home of the employer performed in any year by an

16 individual under the age of 18 during any portion of

17 such year.’’.

18 (3) EFFECTIVE DATE.—The amendments made

19 by this subsection shall apply to remuneration paid

20 in calendar years beginning after December 31,

21 1993.

22 (3) EFFECTIVE DATES.—

23 (A) IN GENERAL.—Except as provided in

24 subparagraph (B), the amendments made by this

25 subsection shall apply to remuneration paid in
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1 calendar years beginning after December 31,

2 1994.

3 (B) EXCLUDED EMPLOYMENT.—The amend4 ments made by paragraphs (1)(C) and (2)(B)

5 shall apply to services performed after December

6 31, 1994.

7 (b) COORDINATION OF COLLECTION OF DOMESTIC

8 SERVICE EMPLOYMENT WITH COLLECTION OF INCOME

9 TAXES.—

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

11 Revenue Code of 1986 (relating to general provi12 sions relating to employment taxes) is amended by

13 adding at the end thereof the following new section:

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

15 SERVICE EMPLOYMENT TAXES WITH COLLEC16 TION OF INCOME TAXES.

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

18 in this section—

19 ‘‘(1) returns with respect to domestic service

20 employment taxes shall be made on a calendar year

21 basis,

22 ‘‘(2) any such return for any calendar year

23 shall be filed on or before the 15th day of the 4th

24 month following the close of the employer’s taxable

25 year which begins in such calendar year, and
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1 ‘‘(3) no requirement to make deposits (or to

2 pay installments under section 6157) shall apply

3 with respect to such taxes.

4 ‘‘(b) DOMESTIC SERVICE EMPLOYMENT TAXES SUB5 JECT TO ESTIMATED TAX PROVISIONS.—

6 ‘‘(1) IN GENERAL.—Solely for purposes of sec7 tion 6654, domestic service employment taxes im8 posed with respect to any calendar year shall be

9 treated as a tax imposed by chapter 2 for the tax10 able year of the employer which begins in such cal11 endar year.

12 ‘‘(2) SPECIAL RULE WHERE TAXES ARE PAID

13 ON OR BEFORE APRIL 15.—If, on or before the date

14 described in subsection (a)(2) or, if earlier, the date

15 the return is filed, the employer pays in full the do16 mestic service employment taxes computed on such

17 return as payable for any calendar year, then no ad18 dition to tax shall be imposed under section 6654(a)

19 with respect to any underpayment of any required

20 installment of such taxes for the taxable year begin21 ning in such calendar year.

22 ‘‘(3) ANNUALIZATION.—Under regulations pre23 scribed by the Secretary, appropriate adjustments

24 shall be made in the application of section
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1 6654(d)(2) in respect of the amount treated as tax

2 under paragraph (1).

3 ‘‘(4) TRANSITIONAL RULE.—For purposes of

4 applying section 6654 to a taxable year beginning in

5 1994 1995, the amount referred to in clause (ii) of

6 section 6654(d)(1)(B) shall be increased by 90 per7 cent of the amount treated as tax under paragraph

8 (1) for such preceding taxable year.

9 ‘‘(c) DOMESTIC SERVICE EMPLOYMENT TAXES.—

10 For purposes of this section, the term ‘domestic service

11 employment taxes’ means—

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

13 remuneration paid for domestic service in a private

14 home of the employer, and

15 ‘‘(2) any amount withheld from such remunera16 tion pursuant to an agreement under section

17 3402(p).

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

19 in a private home of the employer’ does not include service

20 includes domestic service described in section 3121(g)(5).

21 ‘‘(d) EXCEPTION WHERE EMPLOYER LIABLE FOR

22 OTHER EMPLOYMENT TAXES.—To the extent provided in

23 regulations prescribed by the Secretary, this section shall

24 not apply to any employer for any calendar year if such

25 employer is liable for any tax under this subtitle with re-
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1 spect to remuneration for services other than domestic

2 service in a private home of the employer.

3 ‘‘(e) GENERAL REGULATORY AUTHORITY.—The Sec4 retary shall prescribe such regulations as may be nec5 essary or appropriate to carry out the purposes of this

6 section. Such regulations may treat domestic service em7 ployment taxes as taxes imposed by chapter 1 for purposes

8 of coordinating the assessment and collection of such em9 ployment taxes with the assessment and collection of do10 mestic employers’ income taxes.

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

12 COLLECT STATE UNEMPLOYMENT TAXES.—

13 ‘‘(1) IN GENERAL.—The Secretary is hereby

14 authorized to enter into an agreement with any

15 State to collect, as the agent of such State, such

16 State’s unemployment taxes imposed on remunera17 tion paid for domestic service in a private home of

18 the employer. Any taxes to be collected by the Sec19 retary pursuant to such an agreement shall be treat20 ed as domestic service employment taxes for pur21 poses of this section.

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

23 amount collected under an agreement referred to in

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

2 Trust Fund.

3 ‘‘(3) SUBTITLE F MADE APPLICABLE.—For

4 purposes of subtitle F, any amount required to be

5 collected under an agreement under paragraph (1)

6 shall 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

12 adding 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,

16 1993 1994.

17 (4) EXPANDED INFORMATION TO EMPLOY18 ERS.—The Secretary of the Treasury or his delegate

19 shall prepare and make available information on the

20 Federal tax obligations of employers with respect to

21 employees performing domestic service in a private

22 home of the employer. Such information shall also

23 include a statement that such employers may have

24 obligations with respect to such employees under
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1 State laws relating to unemployment insurance and

2 workers compensation.

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.