neration for that employer before Jan-
uary 1, 1995,
‘‘(II) who is a bona fide employee
of that employer on December 31,
1994, and
‘‘(III) whose employment rela-
tionship with that employer was not
entered into for purposes of meeting
the requirements of this subpara-
graph, and
‘‘(ii) the employment relationship with
that employer has not been terminated
after December 31, 1994.
‘‘(B) TREATMENT OF MULTIPLE AGENCIES
AND
INSTRUMENTALITIES.—For purposes of
subparagraph (A), under regulations—
‘‘(i) all agencies and instrumentalities
of a State (as defined in section 218(b) of
the Social Security Act) or of the District
of Columbia shall be treated as a single
employer, and
‘‘(ii) all agencies and instrumen-
talities of a political subdivision of a State
(as so defined) shall be treated as a single
employer and shall not be treated as de-
scribed in clause (i).
‘‘(3) EXCEPTION FOR CERTAIN SERVICES.—
‘‘(A) IN GENERAL.—The requirements of
this paragraph are met with respect to service
if such service is performed—
‘‘(i) by an individual who is employed
by a State or political subdivison thereof to
relieve such individual from unemployment,
‘‘(ii) in a hospital, home, or other in-
stitution by a patient or inmate thereof as
an employee of a State or political subdivi-
sion thereof or of the District of Columbia,
‘‘(iii) by an individual, as an employee
of a State or political subdivision thereof
or of the District of Columbia, serving on
a temporary basis in case of fire, storm,
snow, earthquake, flood, or other similar
emergency,
‘‘(iv) by any individual as an employee
included under section 5351(2) of title 5,
United States Code (relating to certain in-
terns, student nurses, and other student
employees of hospitals of the District of
Columbia Government), other than as a
medical or dental intern or a medical or
dental resident in training,
‘‘(v) by an election official or election
worker if the remuneration paid in a cal-
endar year for such service is less than
$1,000 with respect to service performed
during 1995, and the adjusted amount de-
termined under section 210(r)(3)(C) of the
Social Security Act for any subsequent
year with respect to service performed dur-
ing such subsequent year, except to the ex-
tent that service by such election official or
election worker is included in employment
under an agreement under section 218 of
the Social Security Act, or
‘‘(vi) by an employee in a position
compensated solely on a fee basis which is
treated pursuant to section 1402(c)(2)(E)
as a trade or business for purposes of in-
clusion of such fees in net earnings from
self-employment.
‘‘(B) DEFINITIONS.—As used in this para-
graph, the terms ‘State’ and ‘political subdivi-
sion’ have the meanings given those terms in
section 218(b) of the Social Security Act.’’.
(c) CONFORMING AMENDMENTS.—
(1) Subsection (j) of such section 3121 (relat-
ing to covered transportation service) is repealed.
(2) Paragraph (2) of section 3121(u) of such
Code (relating to application of hospital insurance
tax to Federal, State, and local employment) is
amended—
(A) in subparagraph (B), by striking
‘‘service is performed’’ in clause (ii) and all that
follows through the end of such subparagraph
and inserting ‘‘service is service described in
subsection (t)(3)(A).’’; and
(B) in subparagraph (C)(i), by inserting
‘‘under subsection (b)(7) as in effect in March
1994’’ after ‘‘chapter’’.
SEC. 303. EFFECTIVE DATE OF TITLE.
Except as otherwise provided in this title, the amend-
ments made by this title shall apply with respect to service
performed after December 31, 1994.
TITLE IV—SOCIAL SECURITY
PAYROLL TAX
SEC. 401. LEVEL OF OASDI TAX.
(a) TAX ON EMPLOYEES.—Subsection (a) of section
3101 of the Internal Revenue Code of 1986 (relating to
tax on employees for old-age, survivors, and disability in-
surance) is amended in the table—
(1) by striking the following:
‘‘1990 or thereafter .................................................................. 6.2 percent.’’;
and
(2) by inserting the following:
‘‘1990 through 2019 ................................................................ 6.2 percent
2020 .......................................................................................6.43 percent
2021 .......................................................................................6.66 percent
2022 .......................................................................................6.89 percent
2023 .......................................................................................7.12 percent
2024 through 2054 ................................................................7.35 percent
2055 .......................................................................................7.55 percent
2056 .......................................................................................7.75 percent
2057 .......................................................................................7.95 percent
2058 or thereafter ..................................................................8.15 percent.’’
(b) TAX ON EMPLOYERS.—Subsection (a) of section
3111 of such Code (relating to tax on employers for old-
age, survivors, and disability insurance) is amended in the
table—
(1) by striking the following:
‘‘1990 or thereafter .................................................................. 6.2 percent.’’;
and
(2) by inserting the following:
‘‘1990 through 2019 ................................................................ 6.2 percent
2020 .......................................................................................6.43 percent
2021 .......................................................................................6.66 percent
2022 .......................................................................................6.89 percent
2023 .......................................................................................7.12 percent
2024 through 2054 ................................................................7.35 percent
2055 .......................................................................................7.55 percent
2056 .......................................................................................7.75 percent
2057 .......................................................................................7.95 percent
2058 or thereafter ..................................................................8.15 percent.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to remuneration paid
after December 31, 1994.
SEC. 402. LEVEL OF SELF-EMPLOYMENT TAX.
(a) IN GENERAL.—Subsection (a) of section 1401 of
the Internal Revenue Code of 1986 (relating to rate of
tax on self-employment income for old-age, survivors, and
disability insurance) is amended in the table—
(1) by striking the following:
‘‘December 31, 1989 .........
...........................................
12.40’’;
and
(2) by inserting the following:
‘‘December 31, 1989 .........
January 1, 2020 ...............
12.40
December 31, 2019 .........
January 1, 2021 ...............
12.86
December 31, 2020 .........
January 1, 2022 ...............
13.32
December 31, 2021 .........
January 1, 2023 ...............
13.78
December 31, 2022 .........
January 1, 2024 ...............
14.24
December 31, 2023 .........
January 1, 2055 ...............
14.70
December 31, 2054 .........
January 1, 2056 ...............
15.10
December 31, 2055 .........
January 1, 2057 ...............
15.50
December 31, 2056 .........
January 1, 2058 ...............
15.90
December 31, 2057 .........
...........................................
16.30.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to taxable years begin-
ning after December 31, 1994.
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