[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2334 Introduced in House (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.

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