PUBLIC LAW 103-387—OCT. 22, 1994
108 STAT. 4071
Public Law 103-387
103d Congress
An Act
To make improvements in the old-age, survivors, and disability insurance program
under title II of the Social Security Act.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Social Security Domestic Employ-
ment Reform Act of 1994".
SEC. 2. SIMPLIFICATION OF EMPLOYMENT TAXES ON DOMESTIC
SERVICES.
(a) THRESHOLD REQUIREMENT FOR SOCIAL SECURITY 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 employer in any
calendar year to an employee for domestic service in a
private home of the employer (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 appHcable 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 purposes of subsection (a)(7)(B), the term 'applicable dollar tirreshold' means
$1,000. In the case of calendar years after 1995, the Commissioner
of Social Security shall ac^ust such $1,000 amount at the same
time and in the same manner as under section 215(a)(l)(B)(ii)
of the Social Security Act with respect to the amounts referred
to in section 215(a)(l)(B)(i) of such Act, except tiaat, for purposes
of this paragraph, 1993 shall be substituted for the calendar year
referred to in section 215(a)(l)(B)(u)(II) of such Act If any amount
as adjusted under the preceding sentence is not a multiple of
$100, such amount shall be rounded to the next lowest multiple
of $100.".
(C) EMPLOYMENT OF DOMESTIC EMPLOYEES UNDER AGE
18 EXCLUDED FROM COVERAGE.— Section 3121(b) of such
Code (defining employment) is amended—
(i) by striking "or" at the end of paragraph (19),
(ii) by striking the period at the end of paragraph
(20) and inserting "; or", and
Oct. 22, 1994
[H.R. 4278]
Social Security
Domestic
Employment
Reform Act of
1994.
26 USC 1 note.
26 USC 3121.
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