I 
108TH CONGRESS 
1ST SESSION H. R. 2097
To amend the Internal Revenue Code of 1986 to change certain threshold 
and other tests in order to decrease the amount of farm labor wages 
that are subject to Social Security and Medicare taxes, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2003
Mr. LEWIS of Kentucky 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 change 
certain threshold and other tests in order to decrease 
the amount of farm labor wages that are subject to 
Social Security and Medicare taxes, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CHANGES IN THRESHOLD AND OTHER TESTS 
FOR DETERMINING AMOUNT OF WAGES PAID 
TO AGRICULTURAL WORKERS THAT ARE SUB-
JECT TO SOCIAL SECURITY AND MEDICARE 
TAXES. 
(a) INCREASE IN $150 REMUNERATION THRESHOLD 
TO $1,000 AND INCREASE IN TOTAL FARM PAYROLL 
TEST.—
(1) INTERNAL REVENUE CODE OF 1986.—Sub-
paragraph (B) of section 3121(a)(8) of the Internal 
Revenue Code of 1986 (relating to definition of 
wages) is amended—
(A) in clause (i), by striking ‘‘$150’’ and 
inserting ‘‘$1,000’’; and 
(B) in clause (ii), by striking ‘‘$2500’’ and 
inserting ‘‘$50,000’’. 
(2) SOCIAL SECURITY ACT.—Subparagraph (B) 
of section 209(a)(7) of the Social Security Act (42 
U.S.C. 409(a)(7)(B)) (relating to definition of 
wages) is amended—
(A) in clause (i), by striking ‘‘$150’’ and 
inserting ‘‘$1,000’’; and 
(B) in clause (ii), by striking ‘‘$2500’’ and 
inserting ‘‘$50,000’’. 
(b) ADJUSTMENT FOR INFLATION.—
(1) INTERNAL REVENUE CODE OF 1986.—Sub-
section (i) of section 3121 of the Internal Revenue 
Code of 1986 (relating to computation of wages in 
certain cases) is amended by adding at the end the 
following new paragraph: 
‘‘(6) AGRICULTURAL LABOR.—
‘‘(A) IN GENERAL.—For purposes of this 
chapter, in the case of agricultural labor re-
ferred to in subsection (a)(8), in the case of a 
calendar year after 2003, the $1,000 amount 
contained in subparagraph (B)(i), and the 
$50,000 amount contained in subparagraph 
(B)(ii), shall each be increased by an amount 
equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins by substituting ‘calendar year 2002’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(B) ROUNDING.—If any increase deter-
mined under subparagraph (A) is not a multiple 
of $50, such increase shall be rounded to the 
next lowest multiple of $50.’’.
(2) SOCIAL SECURITY ACT.—Section 209 of the 
Social Security Act (42 U.S.C. 409) is amended by 
adding at the end the following new subsection: 
‘‘(l)(1) For purposes of this title, in the case of agri-
cultural labor referred to in subsection (a)(7), in the case 
of a calendar year after 2003, the $1,000 amount con-
tained in subparagraph (B)(i), and the $50,000 amount 
contained in subparagraph (B)(ii), shall each be increased 
in the same manner as the $1,000 amount and the 
$50,000 amount, respectively, contained in section 
3121(a)(8)(B) of the Internal Revenue Code of 1986 are 
increased pursuant to section 3121(i)(6) of such Code.’’. 
(c) EXEMPTION FOR SERVICE PERFORMED BY CER-
TAIN FULL-TIME STUDENTS.—
(1) INTERNAL REVENUE CODE OF 1986.—Sec-
tion 3121(b) of the Internal Revenue Code of 1986 
(relating to definition of employment) is amended by 
striking ‘‘or’’ at the end of paragraph (20), by strik-
ing the period at the end of paragraph (21) and in-
serting ‘‘; or’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(22) agricultural labor performed by a full-
time student who has not attained 18 years of age.’’.
(2) SOCIAL SECURITY ACT.—Section 210(a) of 
the Social Security Act (42 U.S.C. 410(a)) is 
amended—
(A) by striking ‘‘or’’ at the end of para-
graph (20), 
(B) by striking the period at the end of 
paragraph (21) and inserting ‘‘; or’’, and 
(C) by inserting after paragraph (21) the 
following new paragraph: 
‘‘(22) Agricultural labor performed by a full-
time student who has not attained 18 years of age.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to remuneration paid after Decem-
ber 31, 2003. 
SEC. 2. COORDINATION OF COLLECTION OF AGRICUL-
TURAL LABOR EMPLOYMENT TAXES WITH 
COLLECTION OF INCOME TAXES. 
(a) IN GENERAL.—Subsection (c) of section 3510 of 
the Internal Revenue Code of 1986 (relating to coordina-
tion of collection of domestic service employment taxes 
with collection of income taxes) is amended to read as fol-
lows: 
‘‘(c) ELIGIBLE EMPLOYMENT TAXES.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘eligible employment taxes’ means—