103D CONGRESS
2D SESSION
H. R. 4278
AN ACT
To make improvements in the old-age, survivors, and disabil-
ity insurance program under title II of the Social Secu-
rity Act.
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 Act
Amendments of 1994’’.
SEC. 2. SIMPLIFICATION OF EMPLOYMENT TAXES ON
DOMESTIC SERVICES.
(a) COORDINATION OF COLLECTION OF DOMESTIC
SERVICE EMPLOYMENT WITH COLLECTION OF INCOME
TAXES.—
(1) IN GENERAL.—Chapter 25 of the Internal
Revenue Code of 1986 (relating to general provi-
sions relating to employment taxes) is amended by
adding at the end thereof 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 15th day of the fourth
month following the close of 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-
posed with respect to any calendar year shall be
treated as a tax imposed by chapter 2 for the tax-
able year of the employer which begins in such cal-
endar year.
‘‘(2) ANNUALIZATION.—Under regulations pre-
scribed by the Secretary, appropriate adjustments
shall be made in the application of section
6654(d)(2) in respect of the amount treated as tax
under paragraph (1).
‘‘(3) TRANSITIONAL
RULE.—For purposes of
applying section 6654 to a taxable year beginning in
1994, the amount referred to in clause (ii) of section
6654(d)(1)(B) shall be increased by 90 percent of
the amount treated as tax under paragraph (1) for
such taxable year.
‘‘(c) DOMESTIC SERVICE EMPLOYMENT TAXES.—
For purposes of this section, the term ‘domestic service
employment taxes’ means—
‘‘(1) any taxes imposed by chapter 21 or 23 on
remuneration paid for domestic service in a private
home of the employer, and
‘‘(2) any amount withheld from such remunera-
tion pursuant to an agreement under section
3402(p).
For purposes of this subsection, the term ‘domestic service
in a private home of the employer’ does not include service
described in section 3121(g)(5).
‘‘(d) EXCEPTION WHERE EMPLOYER LIABLE FOR
OTHER EMPLOYMENT TAXES.—To the extent provided in
regulations prescribed by the Secretary, this section shall
not apply to any employer for any calendar year if such
employer is liable for any tax under this subtitle with re-
spect to remuneration for services other than domestic
service in a private home of the employer.
‘‘(e) GENERAL REGULATORY AUTHORITY.—The Sec-
retary shall prescribe such regulations as may be nec-
essary or appropriate to carry out the purposes of this
section. Such regulations may treat domestic service em-
ployment taxes as taxes imposed by chapter 1 for purposes
of coordinating the assessment and collection of such em-
ployment taxes with the assessment and collection of do-
mestic employers’ income taxes.
‘‘(f) AUTHORITY TO ENTER INTO AGREEMENTS TO
COLLECT STATE UNEMPLOYMENT TAXES.—
‘‘(1) IN
GENERAL.—The Secretary is hereby
authorized to enter into an agreement with any
State to collect, as the agent of such State, such
State’s unemployment taxes imposed on remunera-
tion paid for domestic service in a private home of
the employer. Any taxes to be collected by the Sec-
retary pursuant to such an agreement shall be treat-
ed as domestic service employment taxes for pur-
poses of this section.
‘‘(2) TRANSFERS
TO
STATE
ACCOUNT.—Any
amount collected under an agreement referred to in
paragraph (1) shall be transferred by the Secretary
to the account of the State in the Unemployment
Trust Fund.
‘‘(3) SUBTITLE
F
MADE
APPLICABLE.—For
purposes of subtitle F, any amount required to be
collected under an agreement under paragraph (1)
shall be treated as a tax imposed by chapter 23.
‘‘(4) STATE.—For purposes of this subsection,
the term ‘State’ has the meaning given such term by
section 3306(j)(1).’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 25 of such Code is amended by
adding at the end thereof the following:
‘‘Sec. 3510. Coordination of collection of domestic service employ-
ment taxes with collection of income taxes.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to remuneration paid
in calendar years beginning after December 31,
1994.
(4) EXPANDED
INFORMATION
TO
EMPLOY-
ERS.—The Secretary of the Treasury or his delegate
shall prepare and make available information on the
Federal tax obligations of employers with respect to
employees performing domestic service in a private
home of the employer. Such information shall also
include a statement that such employers may have
obligations with respect to such employees under
State laws relating to unemployment insurance and
workers compensation.
(b) THRESHOLD REQUIREMENT FOR SOCIAL SECU-
RITY TAXES.—
(1) AMENDMENTS
OF
INTERNAL
REVENUE
CODE.—
(A) 
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 (within the meaning of subsection (y)), if
the cash remuneration paid in such year by the