[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4278 Reported in House (RH)]
Union Calendar No. 274
103d CONGRESS
2d Session
H. R. 4278
[Report No. 103-491]
_______________________________________________________________________
A BILL
To make improvements in the old-age, survivors, and disability
insurance program under title II of the Social Security Act.
_______________________________________________________________________
May 4, 1994
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
Union Calendar No. 274
103d CONGRESS
2d Session
H. R. 4278
[Report No. 103-491]
To make improvements in the old-age, survivors, and disability
insurance program under title II of the Social Security Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 1994
Mr. Jacobs (for himself, Mrs. Kennelly, Mr. Bunning, Mr. Houghton, and
Mrs. Meek) introduced the following bill; which was referred to the
Committee on Ways and Means
May 4, 1994
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
_______________________________________________________________________
A BILL
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 Act Amendments of
1994''.
SEC. 2. 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 1994, 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 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, 1994.
(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 (within the meaning of
subsection (y)), 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 (y)) for such year;''.
(B) Section 3121 of such Code is amended by adding
at the end thereof the following new subsection:
``(y) Domestic Service in a Private Home.--For purposes of
subsection (a)(7)(B)--
``(1) Exclusion for certain farm service.--The term
`domestic service in a private home of the employer' does not
include service described in subsection (g)(5).
``(2) Applicable dollar threshold.--The term `applicable
dollar threshold' means $1,250. In the case of calendar years
after 1995, the Secretary of Health and Human Services shall
adjust such $1,250 amount at the same time and in the same
manner as under section 215(a)(1)(B)(ii) of the Social Security
Act with respect to the amounts referred to in section
215(a)(1)(B)(i) of such Act, except that, for purposes of this
paragraph, 1993 shall be substituted for the calendar year
referred to in section 215(a)(1)(B)(ii)(II) of such Act. If the
amount determined under the preceding sentence is not a
multiple of $50, such amount shall be rounded to the nearest
multiple of $50.''.
(C) 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
``the applicable dollar threshold (as defined
in section 3121(y)(2)) for such year''.
(2) Amendment of social security act.--Subparagraph (B) of
section 209(a)(6) of the Social Security Act (42 U.S.C.
409(a)(6)(B)) 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 the
applicable dollar threshold (as defined in section 3121(y)(2)
of the Internal Revenue Code of 1986) for such year. 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, 1994.
(4) Relief from liability for certain underpayment
amounts.--
(A) In general.--On and after the date of the
enactment of this Act, an underpayment to which this
paragraph applies (and any penalty, addition to tax,
and interest with respect to such underpayment) shall
not be assessed (or, if assessed, shall not be
collected).
(B) Underpayments to which paragraph applies.--This
paragraph shall apply to an underpayment to the extent
of the amount thereof which would not be an
underpayment if--
(i) the amendments made by paragraph (1)
had applied to calendar years 1993 and 1994,
and
(ii)(I) the applicable dollar threshold for
calendar year 1993 were $1,150, and
(II) the applicable dollar threshold for
calendar year 1994 were $1,200.
SEC. 3. ALLOCATIONS TO FEDERAL DISABILITY INSURANCE TRUST FUND.
(a) Allocation With Respect to Wages.--Section 201(b)(1) of the
Social Security Act (42 U.S.C. 401(b)(1)) is amended by striking ``(O)
1.20 per centum'' and all that follows through ``December 31, 1999, and
so reported,'' and inserting ``(O) 1.20 per centum of the wages (as so
defined) paid after December 31, 1989, and before January 1, 1994, and
so reported, (P) 1.88 per centum of the wages (as so defined) paid
after December 31, 1993, and before January 1, 2000, and so reported,
and (Q) 1.80 per centum of the wages (as so defined) paid after
December 31, 1999, and so reported,''.
(b) Allocation With Respect to Self-Employment Income.--Section
201(b)(2) of such Act (42 U.S.C. 401(b)(2)) is amended striking ``(O)
1.20 per centum'' and all that follows through ``December 31, 1999,''
and inserting ``(O) 1.20 per centum of the amount of self-employment
income (as so defined) so reported for any taxable year beginning after
December 31, 1989, and before January 1, 1994, (P) 1.88 per centum of
the amount of self-employment income (as so defined) so reported for
any taxable year beginning after December 31, 1993, and before January
1, 2000, and (Q) 1.80 per centum of the amount of self-employment
income (as so defined) so reported for any taxable year beginning after
December 31, 1999,''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to wages paid after December 31, 1993, and self-
employment income for taxable years beginning after such date.
(d) Study on Rising Costs of Disability Benefits.--
(1) In general.--As soon as practicable after the date of
the enactment of this Act, the Secretary of Health and Human
Services shall conduct a comprehensive study of the reasons for
rising costs payable from the Federal Disability Insurance
Trust Fund.
(2) Matters to be included in study.--In conducting the
study under this subsection, the Secretary shall--
(A) determine the relative importance of the
following factors in increasing the costs payable from
the Trust Fund:
(i) increased numbers of applications for
benefits;
(ii) higher rates of benefit allowances;
and
(iii) decreased rates of benefit
terminations; and
(B) identify, to the extent possible, underlying
social, economic, demographic, programmatic, and other
trends responsible for changes in disability benefit
applications, allowances, and terminations.
(3) Report.--Not later than December 31, 1995, the
Secretary shall transmit a report to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate setting forth the results of the study
conducted under this subsection, together with any
recommendations for legislative changes which the Secretary
determines appropriate.
SEC. 4. NONPAYMENT OF BENEFITS TO INCARCERATED INDIVIDUALS AND
INDIVIDUALS CONFINED IN CRIMINAL CASES PURSUANT TO
CONVICTION OR BY COURT ORDER BASED ON FINDINGS OF
INSANITY.
(a) In General.--Section 202(x) of the Social Security Act (42
U.S.C. 402(x)) is amended--
(1) in the heading, by inserting ``and Certain Other
Inmates of Publicly Funded Institutions'' after ``Prisoners'';
(2) in paragraph (1) by striking ``during which such
individual'' and inserting ``during which such individual--'',
and by striking ``is confined'' and all that follows and
inserting the following:
``(A) is confined in a jail, prison, or other penal
institution or correctional facility pursuant to his conviction
of an offense punishable by imprisonment for more than 1 year
(regardless of the actual sentence imposed), or
``(B) is confined by court order in an institution at
public expense in connection with--
``(i) a verdict that the individual is guilty but
insane, with respect to an offense punishable by
imprisonment for more than 1 year,
``(ii) a verdict that the individual is not guilty
of such an offense by reason of insanity,
``(iii) a finding that such individual is
incompetent to stand trial under an allegation of such
an offense, or
``(iv) a similar verdict or finding with respect to
such an offense based on similar factors (such as a
mental disease, a mental defect, or mental
incompetence),
and, for purposes of this subparagraph, an individual so
confined shall be treated as remaining so confined until he or
she is unconditionally released from the care and supervision
of such institution and such institution ceases to meet the
individual's basic living needs.''; and
(3) in paragraph (3), by striking ``any individual'' and
all that follows and inserting ``any individual who is confined
as described in paragraph (1) if the confinement is under the
jurisdiction of such agency and the Secretary requires such
information to carry out the provisions of this section.''.
(b) Conforming Amendments.--
(1) Section 226 of such Act (42 U.S.C. 426) is amended by
adding at the end the following new subsection:
``(i) The requirements of subsections (a)(2) and (b)(2) shall not
be treated as met with respect to any individual for any month if a
monthly benefit to which such individual is entitled under section 202
or 223 for such month is not payable under section 202(x).''.
(2) Section 226A of such Act (42 U.S.C. 426-1) is amended
by adding at the end the following new subsection:
``(d) The requirements of subsection (a)(1) shall not be treated as
met with respect to any individual for any month if a monthly benefit
to which such individual is entitled under section 202 or 223 for such
month is not payable under section 202(x).''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to benefits for months commencing after 90 days
after the date of the enactment of this Act and with respect to items
and services provided after such 90-day period.