I
103D CONGRESS
1ST SESSION
H. R. 2334
To amend the Internal Revenue Code of 1986 to simplify the collection
of employment taxes on domestic services.
IN THE HOUSE OF REPRESENTATIVES
JUNE 8, 1993
Mr. HOUGHTON 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 collection of employment taxes on domestic services.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. 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) 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,
1993.
(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, if the cash remuneration paid in such
year by the employer to the employee for such
service is less than $800. As used in this sub-
paragraph, the term ‘domestic service in a pri-
vate home of the employer’ does not include
service described in subsection (g)(5);’’
(B) The second sentence of section
3102(a) of such Code is amended—
(i) by striking ‘‘calendar quarter’’
each place it appears and inserting ‘‘cal-
endar year’’, and
(ii) by striking ‘‘$50’’ and inserting
‘‘$800’’.
(2) AMENDMENT OF SOCIAL SECURITY ACT.—
Subparagraph (B) of section 209(a)(6) of the Social
Security Act 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 $800. As used in this sub-
paragraph, the term ‘domestic service in a pri-
vate home of the employer’ does not include
service described in section 210(f)(5).’’
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to remuneration paid
in calendar years beginning after December 31,
1993.
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