I

103D CONGRESS

1ST SESSION H. R. 1114

To amend the Internal Revenue Code of 1986 to simplify the application

of employment taxes in the case of domestic services.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 24, 1993

Mrs. MEEK 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 simplify

the application of employment taxes in the case of

domestic services.

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

3 SECTION 1. SIMPLIFICATION OF EMPLOYMENT TAXES ON

4 DOMESTIC SERVICES.

5 (a) THRESHOLD REQUIREMENT FOR SOCIAL SECU6 RITY TAXES.—

7 (1) Subparagraph (B) of section 3121(a)(7) of

8 the Internal Revenue Code of 1986 (defining wages)

9 is amended to read as follows:
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1 ‘‘(B) cash remuneration paid by an em2 ployer in any calendar year to an employee for

3 domestic service in a private home of the em4 ployer, if the cash remuneration paid in such

5 year by the employer to the employee for such

6 service is less than $300. As used in this sub7 paragraph, the term ‘domestic service in a pri8 vate home of the employer’ does not include

9 service described in subsection (g)(5);’’

10 (2) Subparagraph (B) of section 209(a)(6) of

11 the Social Security Act is amended to read as

12 follows:

13 ‘‘(B) Cash remuneration paid by an em14 ployer in any calendar year to an employee for

15 domestic service in a private home of the em16 ployer, if the cash remuneration paid in such

17 year by the employer to the employee for such

18 service is less than $300. As used in this sub19 paragraph, the term ‘domestic service in a pri20 vate home of the employer’ does not include

21 service described in section 210(f)(5).’’

22 (3) The second sentence of section 3102(a) of

23 such Code is amended—
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1 (A) by striking ‘‘calendar quarter’’ each

2 place it appears and inserting ‘‘calendar year’’,

3 and

4 (B) by striking ‘‘$50’’ and inserting

5 ‘‘$300’’.

6 (b) COORDINATION OF COLLECTION OF DOMESTIC

7 SERVICE EMPLOYMENT WITH COLLECTION OF INCOME

8 TAXES.—

9 (1) IN GENERAL.—Chapter 25 of such Code

10 (relating to general provisions relating to employ11 ment taxes) is amended by adding at the end thereof

12 the following new section:

13 SEC. 3510. COORDINATION OF COLLECTION OF DOMESTIC

14 SERVICE EMPLOYMENT TAXES WITH COLLEC15 TION OF INCOME TAXES.

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

17 in this section—

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

19 employment taxes shall be made on a calendar year

20 basis,

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

22 shall be filed on or before the 15th day of the fourth

23 month following the close of the employer’s taxable

24 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

11 calendar year.

12 ‘‘(2) ANNUALIZATION.—Under regulations pre13 scribed by the Secretary, appropriate adjustments

14 shall be made in the application of section

15 6654(d)(2) in respect of the amount treated as tax

16 under paragraph (1).

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

18 applying section 6654 to a taxable year beginning in

19 1993, the amount referred to in clause (ii) of section

20 6654(d)(1)(B) shall be increased by 90 percent of

21 the amount treated as tax under paragraph (1) for

22 such taxable year.

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

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

25 employment taxes’ means—
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1 ‘‘(1) any taxes imposed by chapter 21 or 23 on

2 remuneration paid for domestic service in a private

3 home of the employer, and

4 ‘‘(2) any amount withheld from such remunera5 tion pursuant to an agreement under section

6 3402(p).

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

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

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

10 ‘‘(d) EXCEPTION WHERE EMPLOYER LIABLE FOR

11 OTHER EMPLOYMENT TAXES.—To the extent provided in

12 regulations prescribed by the Secretary, this section shall

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

14 employer is liable for any tax under this subtitle with re15 spect to remuneration for services other than domestic

16 service in a private home of the employer.

17 ‘‘(e) GENERAL REGULATORY AUTHORITY.—The Sec18 retary shall prescribe such regulations as may be nec19 essary or appropriate to carry out the purposes of this

20 section. Such regulations may treat domestic service em21 ployment taxes as taxes imposed by chapter 1 for purposes

22 of coordinating the assessment and collection of such em23 ployment taxes with the assessment and collection of do24 mestic employers’ income taxes.
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1 ‘‘(f) AUTHORITY TO ENTER INTO AGREEMENTS TO

2 COLLECT STATE UNEMPLOYMENT TAXES.—

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

4 authorized to enter into an agreement with any

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

6 State’s unemployment taxes imposed on remunera7 tion paid for domestic service in a private home of

8 the employer. Any taxes to be collected by the Sec9 retary pursuant to such an agreement shall be

10 treated as domestic service employment taxes for

11 purposes of this section.

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

13 amount collected under an agreement referred to in

14 paragraph (1) shall be transferred by the Secretary

15 to the account of the State in the Unemployment

16 Trust Fund.

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

18 purposes of subtitle F, any amount required to be

19 collected under an agreement under paragraph (1)

20 shall be treated as a tax imposed by chapter 23.

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

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

23 section 3306(j)(1).’’
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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions for chapter 25 of such Code is amended by

3 adding at the end thereof the following:

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

4 (c) EFFECTIVE DATE.—The amendments made by

5 this section shall apply to remuneration paid in calendar

6 years after 1993.

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