< Back to H.R. 2334 (103rd Congress, 1993–1994)

Text of Domestic Employment bill

This bill was introduced on June 8, 1993, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 8, 1993 (Introduced).

Source: GPO

HR 2334 IH

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 Representatives 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 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 COLLECTION 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 SUBJECT 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) ANNUALIZATION- Under regulations prescribed 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 paragraph (1).

      ‘(3) TRANSITIONAL RULE- For purposes of applying section 6654 to a taxable year beginning in 1993, 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 taxable year.

    ‘(c) DOMESTIC SERVICE EMPLOYMENT TAXES- For purposes of this section, the term ‘domestic service employment 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 remuneration pursuant to an agreement under section 3402(p).

    For purposes of this subsection, the term ‘domestic service in a private home of the employer’ does not include service described in section 3121(g)(5).

    ‘(d) EXCEPTION WHERE EMPLOYER IS LIABLE FOR OTHER EMPLOYMENT TAXES- To the extent provided in regulations prescribed by the Secretary, this section shall not apply to any employer for any calendar year if such employer is liable for any tax under this subtitle with respect to remuneration for services other than domestic service in a private home of the employer.

    ‘(e) GENERAL REGULATORY AUTHORITY- The Secretary 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 coordinating the assessment and collection of such employment taxes with the assessment and collection of domestic employers’ income taxes.

    ‘(f) AUTHORITY TO ENTER INTO AGREEMENTS TO COLLECT STATE UNEMPLOYMENT TAXES-

      ‘(1) IN GENERAL- The Secretary is hereby authorized to enter into an agreement with any State to collect, as the agent of such State, such State’s unemployment taxes imposed on remuneration paid for domestic 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 employment 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 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 sections for chapter 25 of such Code is amended by adding at the end thereof the following:

‘Sec. 3510. Coordination of collection of domestic service employment 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 EMPLOYERS- 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 SECURITY 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 employer in any calendar year to an employee for domestic service in a private home of the employer, 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 subparagraph, the term ‘domestic service in a private 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 ‘calendar 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 employer in any calendar year to an employee for domestic service in a private home of the employer, 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 subparagraph, the term ‘domestic service in a private 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.