[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1003 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1003

  To amend the Internal Revenue Code of 1986 to increase the maximum 
 amount of wages that a farmer can pay for agricultural labor without 
being subject to the Federal unemployment tax on that labor to reflect 
  inflation since the unemployment tax was first established, and to 
 provide for an annual inflation adjustment in such maximum amount of 
                                 wages.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2001

 Mr. Schaffer (for himself, Mr. Bishop, Mr. Blunt, Mr. Doolittle, Mr. 
 Chambliss, Mr. Fletcher, Mr. Hayes, Mr. Goode, Mr. Lewis of Kentucky, 
Mr. McHugh, Mr. Otter, Mr. Paul, Mr. Pickering, Mr. Ross, Mr. Sessions, 
    Mr. Shows, Mr. Simpson, Mr. Watkins, and Mr. Watts of Oklahoma) 
 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 increase the maximum 
 amount of wages that a farmer can pay for agricultural labor without 
being subject to the Federal unemployment tax on that labor to reflect 
  inflation since the unemployment tax was first established, and to 
 provide for an annual inflation adjustment in such maximum amount of 
                                 wages.

    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 ``Tax Fairness for Agricultural 
Employers Act''.

SEC. 2. INFLATION ADJUSTMENT FOR MAXIMUM AMOUNT OF WAGES FARMERS CAN 
              PAY FOR AGRICULTURAL LABOR WITHOUT BEING SUBJECT TO 
              FEDERAL UNEMPLOYMENT TAX ON THAT LABOR.

    (a) In General.--Paragraph (2) of section 3306(a) of the Internal 
Revenue Code of 1986 (defining agricultural labor) is amended to read 
as follows:
            ``(2) Agricultural labor.--
                    ``(A) In general.--In the case of agricultural 
                labor, the term `employer' means, with respect to any 
                calendar year, any person who--
                            ``(i)(I) during any calendar quarter in the 
                        calendar year paid wages of the applicable 
                        dollar amount (or more) for such calendar year 
                        for agricultural labor, or
                            ``(II) during any calendar quarter in the 
                        preceding calendar year paid wages of the 
                        applicable dollar amount (or more) for such 
                        preceding calendar year for agricultural labor, 
                        or
                            ``(ii) on each of some 20 days during the 
                        calendar year or during the preceding calendar 
                        year, each day being in a different calendar 
                        week, employed at least 10 individuals in 
                        employment in agricultural labor for some 
                        portion of the day.
                    ``(B) Applicable dollar amount.--For purposes of 
                subparagraph (A), the term `applicable dollar amount' 
                means $50,000.
                    ``(C) Inflation adjustment.--
                            ``(i) In general.--In the case of a 
                        calendar year beginning after 2001, the dollar 
                        amount contained in subparagraph (B) shall be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year, 
                                determined by substituting `calendar 
                                year 2000' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                            ``(ii) Rounding.--If any amount as adjusted 
                        under clause (i) is not a multiple of $50, such 
                        amount shall be rounded to the next lowest 
                        multiple of $50.''.
    (b) Conforming Amendment.--Clause (i) of section 3306(c)(1)(A) of 
such Code is amended to read as follows:
                            ``(i)(I) during any calendar quarter in the 
                        calendar year paid remuneration in cash of the 
                        applicable dollar amount (as defined in 
                        subsection (a)(2)(B)) or more for such calendar 
                        year to individuals employed in agricultural 
                        labor (including labor performed by an alien 
                        referred to in subparagraph (B)), or
                            ``(II) during any calendar quarter in the 
                        preceding calendar year paid remuneration in 
                        cash of the applicable dollar amount (as 
                        defined in subsection (a)(2)(B)) or more for 
                        such preceding calendar year to individuals 
                        employed in agricultural labor (including labor 
                        performed by an alien referred to in 
                        subparagraph (B)), or''.
    (c) Effective Date.--The amendments made by this Act shall take 
effect on January 1, 2002.
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