I
103D CONGRESS
1ST SESSION
H. R. 1240
To amend title II of the Social Security Act and the Internal Revenue
Code of 1986 to increase from $50 per quarter to $2,000 per year
the threshold level at which cash remuneration payable to a domestic
employee in any year becomes subject to social security employment
taxes, to provide for annual adjustments in such threshold amount,
and to annualize the payment of domestic service employment taxes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 4, 1993
Mr. SHAW introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend title II of the Social Security Act and the Internal
Revenue Code of 1986 to increase from $50 per quarter
to $2,000 per year the threshold level at which cash
remuneration payable to a domestic employee in any
year becomes subject to social security employment taxes,
to provide for annual adjustments in such threshold
amount, and to annualize the payment of domestic serv-
ice employment taxes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Social Security Domes-
tic Employment Tax Act of 1993’’.
SEC. 2. INCREASE IN THRESHOLD LEVEL AT WHICH CASH
REMUNERATION FOR DOMESTIC SERVICES
BECOMES SUBJECT TO SOCIAL SECURITY EM-
PLOYMENT TAXES.
(a) AMOUNTS EXCLUDED FROM WAGES UNDER THE
SOCIAL SECURITY ACT.—Subparagraph (B) of section
209(a)(6) of the Social Security Act (42 U.S.C.
409(a)(6)(B)) is amended to read as follows:
‘‘(B)(i) Cash remuneration paid by an employer
in any calendar year to an employee for domestic
service in a private home of the employer, if the cash
remuneration paid in such year by the employer to
the employee for such service is less than the thresh-
old amount determined under clause (ii) for such
year.
‘‘(ii) The threshold amount for 1993 shall be
$2,000. The Secretary shall, on or after November
1 of 1993 and of every year thereafter, determine
and publish in the Federal Register the threshold
amount for the succeeding calendar year. Such
threshold amount shall be the larger of—
‘‘(I) the amount in effect for the calendar
year in which the determination under this
clause is made, or
‘‘(II) the product of $2,000 and the ratio
of the deemed average total wages (as defined
in section 209(k)(1)) for the calendar year be-
fore the year in which the determination under
this clause is made to the deemed average total
wages (as so defined) for 1991, with such prod-
uct, if not a multiple of $10, being rounded to
the next higher multiple of $10 where such
amount is a multiple of $5 but not of $10 and
to the nearest multiple of $10 in any other
case.
‘‘(iii) As used in this subparagraph, the term
‘domestic service in a private home of the employer’
does not include service described in section
210(f)(5).’’.
(b) AMOUNTS EXCLUDED FROM WAGES UNDER THE
INTERNAL REVENUE CODE OF 1986.—
(1) IN GENERAL.—Subparagraph (B) of section
3121(a)(7) of the Internal Revenue Code of 1986
(defining wages) is amended to read as follows:
‘‘(B) cash remuneration paid by an em-
ployer in any calendar year to an employee for
domestic service in a private home of the em-
ployer, if the cash remuneration paid in such
year by the employer to the employee for such
service is less than the threshold amount deter-
mined under section 209(a)(6)(B)(ii) of the So-
cial Security Act for such year. As used in this
subparagraph, the term ‘domestic service in a
private home of the employer’ does not include
service described in subsection (g)(5);’’.
(2) CONFORMING
AMENDMENT.—The second
sentence of section 3102(a) of such Code (relating to
deduction of tax from wages) is amended—
(A) by striking ‘‘calendar quarter’’ each
place it appears and inserting ‘‘calendar year’’,
and
(B) by striking ‘‘$50’’ and inserting ‘‘the
threshold amount determined under section
209(a)(6)(B)(ii) of the Social Security Act for
such year’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to remuneration paid in calendar
years after 1992.
SEC. 3. COORDINATION OF COLLECTION OF DOMESTIC
SERVICE EMPLOYMENT TAXES WITH COLLEC-
TION OF INCOME TAXES.
(a) IN GENERAL.—Chapter 25 of the Internal Reve-
nue Code of 1986 (relating to general provisions relating
to employment taxes) is amended by adding at the end
the following new section:
‘‘SEC. 3510. COORDINATION OF COLLECTION OF DOMESTIC
SERVICE EMPLOYMENT TAXES WITH COLLEC-
TION OF INCOME TAXES.
‘‘(a) GENERAL RULE.—Except as otherwise provided
in this section—
‘‘(1) returns with respect to domestic service
employment taxes shall be made on a calendar year
basis,
‘‘(2) any such return for any calendar year
shall be filed on or before the due date (including ex-
tensions) of the income tax return for the employer’s
taxable year which begins in such calendar year, and
‘‘(3) no requirement to make deposits (or to
pay installments under section 6157) shall apply
with respect to such taxes.
‘‘(b) DOMESTIC SERVICE EMPLOYMENT TAXES SUB-
JECT TO ESTIMATED TAX PROVISIONS.—
‘‘(1) IN GENERAL.—Solely for purposes of sec-
tion 6654, domestic service employment taxes im-