In the Senate of the United States,
May 25 (legislative day, May 16), 1994.
Resolved, That the bill from the House of Representa-
tives (H.R. 4278) entitled ‘‘An Act to make improvements in
the old-age, survivors, and disability insurance program
under title II of the Social Security Act’’, do pass with the
following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Social Security Domes-
tic Employment Reform Act of 1994’’.
SEC. 2. SIMPLIFICATION OF EMPLOYMENT TAXES ON DO-
MESTIC SERVICES.
(a) THRESHOLD REQUIREMENT FOR SOCIAL SECU-
RITY TAXES.—
(1) 
AMENDMENTS
OF
INTERNAL
REVENUE
CODE.—
(A) GENERAL RULE.—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
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domestic service in a private home of the em-
ployer (including domestic service described in
subsection (g)(5)), if the cash remuneration paid
in such year by the employer to the employee for
such service is less than the applicable dollar
threshold (as defined in subsection (x)) for such
year;’’.
(B) APPLICABLE
DOLLAR
THRESHOLD.—
Section 3121 of such Code is amended by adding
at the end thereof the following new subsection:
‘‘(x) APPLICABLE DOLLAR THRESHOLD.—For pur-
poses of subsection (a)(7)(B), the term ‘applicable dollar
threshold’ means the amount required for a quarter of cov-
erage as determined under section 213(d)(2) of the Social
Security Act for calendar year 1995. In the case of calendar
years after 1995, the Secretary of Health and Human Serv-
ices shall adjust such amount at the same time and in the
same manner as the amount under section 213(d)(2) of the
Social Security Act, except that such adjustment shall not
take effect in any year in which the otherwise adjusted
amount does not exceed the amount in effect under this sub-
section for the preceding calendar year by at least $50.’’
(C) EMPLOYMENT OF DOMESTIC EMPLOYEES
UNDER AGE 18 EXCLUDED FROM COVERAGE.—
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Section 3121(b) of such Code (defining employ-
ment) is amended—
(i) by striking ‘‘or’’ at the end of para-
graph (19),
(ii) by striking the period at the end of
paragraph (20) and inserting ‘‘; or’’, and
(iii) by adding at the end the following
new paragraph:
‘‘(21) domestic service in a private home of the
employer performed in any year by an individual
under the age of 18 during any portion of such
year.’’.
(D) CONFORMING AMENDMENTS.—The sec-
ond sentence of section 3102(a) of such Code is
amended—
(i) by striking ‘‘calendar quarter’’ each
place it appears and inserting ‘‘calendar
year’’, and
(ii) by striking ‘‘$50’’ and inserting
‘‘the applicable dollar threshold (as defined
in section 3121(x)) for such year’’.
(2) AMENDMENT OF SOCIAL SECURITY ACT.—
(A) GENERAL RULE.—Subparagraph (B) of
section 209(a)(6) of the Social Security Act (42
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U.S.C. 409(a)(6)(B)) is amended to read as fol-
lows:
‘‘(B) Cash remuneration paid by an employer in
any calendar year to an employee for domestic service
in a private home of the employer (including domes-
tic service described in section 210(f)(5)), if the cash
remuneration paid in such year by the employer to
the employee for such service is less than the applica-
ble dollar threshold (as defined in section 3121(x) of
the Internal Revenue Code of 1986) for such year;’’.
(B) EMPLOYMENT
OF
DOMESTIC
EMPLOY-
EES
UNDER
AGE
EXCLUDED
FROM
COV-
ERAGE.—Section 210(a) of such Act (42 U.S.C.
410(a)) is amended—
(i) by striking ‘‘or’’ at the end of para-
graph (19),
(ii) by striking the period at the end of
paragraph (20) and inserting ‘‘; or’’, and
(iii) by adding at the end the following
new paragraph:
‘‘(21) Domestic service in a private home of the
employer performed in any year by an individual
under the age of 18 during any portion of such
year.’’.
(3) EFFECTIVE DATES.—
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(A) IN GENERAL.—Except as provided in
subparagraph (B), the amendments made by this
subsection shall apply to remuneration paid in
calendar years beginning after December 31,
1994.
(B) EXCLUDED EMPLOYMENT.—The amend-
ments made by paragraphs (1)(C) and (2)(B)
shall apply to services performed after December
31, 1994.
(b) 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 provisions
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 em-
ployment taxes shall be made on a calendar year
basis,
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‘‘(2) any such return for any calendar year shall
be filed on or before the 15th day of the 4th 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 re-
spect to such taxes.
‘‘(b) DOMESTIC SERVICE EMPLOYMENT TAXES SUB-
JECT TO ESTIMATED TAX PROVISIONS.—
‘‘(1) IN GENERAL.—Solely for purposes of section
6654, domestic service employment taxes imposed
with respect to any calendar year shall be treated as
a tax imposed by chapter 2 for the taxable year of the
employer which begins in such calendar year.
‘‘(2) SPECIAL RULE WHERE TAXES ARE PAID ON
OR BEFORE APRIL 15.—If, on or before the date de-
scribed in subsection (a)(2) or, if earlier, the date the
return is filed, the employer pays in full the domestic
service employment taxes computed on such return as
payable for any calendar year, then no addition to
tax shall be imposed under section 6654(a) with re-
spect to any underpayment of any required install-
ment of such taxes for the taxable year beginning in
such calendar year.
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‘‘(3) 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 para-
graph (1).
‘‘(4) TRANSITIONAL RULE.—For purposes of ap-
plying section 6654 to a taxable year beginning in
1995, 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
preceding taxable year.
‘‘(c) DOMESTIC SERVICE EMPLOYMENT TAXES.—For
purposes of this section, the term ‘domestic service employ-
ment 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’ includes domestic 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
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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 serv-
ice in a private home of the employer.
‘‘(e) GENERAL REGULATORY AUTHORITY.—The Sec-
retary shall prescribe such regulations as may be necessary
or appropriate to carry out the purposes of this section.
Such regulations may treat domestic service employment
taxes as taxes imposed by chapter 1 for purposes of coordi-
nating the assessment and collection of such employment
taxes with the assessment and collection of domestic employ-
ers’ income taxes.
‘‘(f) AUTHORITY TO ENTER INTO AGREEMENTS TO
COLLECT STATE UNEMPLOYMENT TAXES.—
‘‘(1) IN GENERAL.—The Secretary is hereby au-
thorized to enter into an agreement with any State to
collect, as the agent of such State, such State’s unem-
ployment taxes imposed on remuneration paid for do-
mestic service in a private home of the employer. Any
taxes to be collected by the Secretary pursuant to such
an agreement shall be treated as domestic service em-
ployment taxes for purposes 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
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the account of the State in the Unemployment Trust
Fund.
‘‘(3) SUBTITLE F MADE APPLICABLE.—For pur-
poses of subtitle F, any amount required to be col-
lected 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 add-
ing 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 EMPLOYERS.—
The Secretary of the Treasury or his delegate shall
prepare and make available information on the Fed-
eral tax obligations of employers with respect to em-
ployees 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 relat-
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ing to unemployment insurance and workers com-
pensation.
SEC. 3. ADDITIONAL DEBT COLLECTION PRACTICES.
(a) IN GENERAL.—Section 204 of the Social Security
Act (42 U.S.C. 404) is amended by adding at the end the
following new subsection:
‘‘(f)(1) With respect to any delinquent amount, the
Secretary may use the collection practices described in sec-
tions 3711(f), 3716, and 3718 of title 31, United States
Code, as in effect on April 1, 1994.
‘‘(2) For purposes of paragraph (1), the term ‘delin-
quent amount’ means an amount—
‘‘(A) in excess of the correct amount of payment
under this title;
‘‘(B) paid to a person after such person has at-
tained 18 years of age; and
‘‘(C) determined by the Secretary, under regula-
tions, to be otherwise unrecoverable under this section
after such person ceases to be a beneficiary under this
title.’’.
(b) CONFORMING AMENDMENT.—Section 3701(d) of
title 31, United States Code, is amended by inserting ‘‘,
except to the extent provided under section 204(f) of such
Act (42 U.S.C. 404(f)),’’ after ‘‘the Social Security Act (42
U.S.C. 301 et seq.)’’.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to collection activities begun on or after
the date of the enactment of this Act and before October
1, 1999.
SEC. 4. PROHIBITION ON PAYMENT OF BENEFITS TO CER-
TAIN INDIVIDUALS CONFINED BY COURT
ORDER TO PUBLIC INSTITUTIONS.
(a) IN GENERAL.—Section 202(x)(1) of the Social Se-
curity Act (42 U.S.C. 402(x)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) Notwithstanding any other provision of this title,
no monthly benefits shall be paid under this section or
under section 223 to any individual for any month during
which such individual is confined in any public institution
by a court order pursuant to a verdict or finding that the
individual is—
‘‘(i) guilty of an offense described in subpara-
graph (A), but insane (or having a similar condition,
such as a mental disease, a mental defect, or mental
incompetence); or
‘‘(ii) not guilty of such an offense by reason of
insanity (or by reason of a similar finding, such as
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a mental disease, a mental defect, or mental incom-
petence).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 202(x)(3) of the Social Security Act
(42 U.S.C. 402(x)(3)) is amended by striking ‘‘any
individual’’ and all that follows and inserting ‘‘any
individual confined as described in paragraph (1) if
the jail, prison, penal institution, correctional facil-
ity, or other public institution to which such individ-
ual is so confined is under the jurisdiction of such
agency and the Secretary requires such information
to carry out the provisions of this section.’’.
(2) The heading for section 202(x) of such Act is
amended by inserting ‘‘and Certain Other Inmates of
Public Institutions’’ after ‘‘Prisoners’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to benefits for months com-
mencing after 90 days after the date of the enactment of
this Act.
SEC. 5. NURSING HOMES REQUIRED TO REPORT ADMIS-
SIONS OF SSI RECIPIENTS.
(a) IN GENERAL.—Section 1631(e)(1) (42 U.S.C.
1383(e)(1)) is amended by adding at the end the following
new subparagraph:
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‘‘(C) For purposes of making determinations under
section 1611(e), the requirements prescribed by the Sec-
retary pursuant to subparagraph (A) shall require each ad-
ministrator of a nursing home, extended care facility, or
intermediate care facility to report to the Secretary of the
admission of any eligible individual or eligible spouse
receiving benefits under this title within 2 weeks of such
admission.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to admissions occurring on or after
October 1, 1995.
Attest:
Secretary.