[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1079 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1079
To amend the Internal Revenue Code of 1986 to change certain threshold
and other tests in order to decrease the amount of farm labor wages
that are subject to Social Security and Medicare taxes, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 15, 2001
Mr. Lewis of Kentucky (for himself and Mr. Schaffer) 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 change certain threshold
and other tests in order to decrease the amount of farm labor wages
that are subject to Social Security and Medicare taxes, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CHANGES IN THRESHOLD AND OTHER TESTS FOR DETERMINING AMOUNT
OF WAGES PAID TO AGRICULTURAL WORKERS THAT ARE SUBJECT TO
SOCIAL SECURITY AND MEDICARE TAXES.
(a) Increase in $150 Remuneration Threshold to $1,000 and Increase
in Total Farm Payroll Test.--
(1) Internal revenue code of 1986.--Subparagraph (B) of
section 3121(a)(8) of the Internal Revenue Code of 1986
(relating to definition of wages) is amended--
(A) in clause (i), by striking ``$150'' and
inserting ``$1,000''; and
(B) in clause (ii), by striking ``$2500'' and
inserting ``$50,000''.
(2) Social security act.--Subparagraph (B) of section
209(a)(7) of the Social Security Act (42 U.S.C. 409(a)(7)(B))
(relating to definition of wages) is amended--
(A) in clause (i), by striking ``$150'' and
inserting ``$1,000''; and
(B) in clause (ii), by striking ``$2500'' and
inserting ``$50,000''.
(b) Adjustment for Inflation.--
(1) Internal revenue code of 1986.--Subsection (i) of
section 3121 of the Internal Revenue Code of 1986 (relating to
computation of wages in certain cases) is amended by adding at
the end the following new paragraph:
``(6) Agricultural labor.--
``(A) In general.--For purposes of this chapter, in
the case of agricultural labor referred to in
subsection (a)(8), in the case of a calendar year after
2001, the $1,000 amount contained in subparagraph
(B)(i), and the $50,000 amount contained in
subparagraph (B)(ii), shall each 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 in which the taxable year begins
by substituting `calendar year 2000' for
`calendar year 1992' in subparagraph (B)
thereof.
``(B) Rounding.--If any increase determined under
subparagraph (A) is not a multiple of $50, such
increase shall be rounded to the next lowest multiple
of $50.''.
(2) Social security act.--Section 209 of the Social
Security Act (42 U.S.C. 409) is amended by adding at the end
the following new subsection:
``(l)(1) For purposes of this title, in the case of agricultural
labor referred to in subsection (a)(7), in the case of a calendar year
after 2001, the $1,000 amount contained in subparagraph (B)(i), and the
$50,000 amount contained in subparagraph (B)(ii), shall each be
increased in the same manner as the $1,000 amount and the $50,000
amount, respectively, contained in section 3121(a)(8)(B) of the
Internal Revenue Code of 1986 are increased pursuant to section
3121(i)(6) of such Code.''.
(c) Exemption for Service Performed by Certain Full Time
Students.--
(1) Internal revenue code of 1986.--Section 3121(b) of the
Internal Revenue Code of 1986 (relating to definition of
employment) is amended by striking ``or'' at the end of
paragraph (20), by striking the period at the end of paragraph
(21) and inserting ``; or'', and by adding at the end the
following new paragraph:
``(22) agricultural labor performed by a full time student
who has not attained 18 years of age.''.
(2) Social security act.--Section 210(a) of the Social
Security Act (42 U.S.C. 410(a)) is amended--
(A) by striking ``or'' at the end of paragraph
(20),
(B) by striking the period at the end of paragraph
(21) and inserting ``; or'', and
(C) by inserting after paragraph (21) the following
new paragraph:
``(22) Agricultural labor performed by a full time student
who has not attained 18 years of age.''.
(d) Effective Date.--The amendments made by this section shall
apply to remuneration paid after December 31, 2001.
SEC. 2. COORDINATION OF COLLECTION OF AGRICULTURAL LABOR EMPLOYMENT
TAXES WITH COLLECTION OF INCOME TAXES.
(a) In General.--Subsection (c) of section 3510 of the Internal
Revenue Code of 1986 (relating to coordination of collection of
domestic service employment taxes with collection of income taxes) is
amended to read as follows:
``(c) Eligible Employment Taxes.--
``(1) In general.--For purposes of this section, the term
`eligible employment taxes' means--
``(A) domestic service employment taxes, and
``(B) agricultural labor employment taxes.
``(2) Domestic service employment taxes.--For purposes of
paragraph (1), the term `domestic service employment taxes'
means--
``(A) any taxes imposed by chapter 21 or 23 on
remuneration paid for domestic service in a private
home of the employer, and
``(B) any amount withheld from such remuneration
pursuant to an agreement under section 3402(p).
For purposes of this paragraph, the term `domestic service in a
private home of the employer' includes domestic service
described in section 3121(g)(5).
``(3) Agricultural labor employment taxes.--For purposes of
paragraph (1), the term `agricultural labor employment taxes'
means--
``(A) any taxes imposed by chapter 21 or 23 on
remuneration paid for agricultural labor, and
``(B) any amount withheld from such remuneration
pursuant to an agreement under section 3402(p).
For purposes of this paragraph, the term `agricultural labor'
has the meaning provided in section 3121(g).''.
(b) Conforming Amendments.--
(1) The heading of section 3510 of such Code is amended by
inserting ``AND AGRICULTURAL LABOR'' after ``DOMESTIC
SERVICE''.
(2) Subsections (a)(1), (b)(1), (e), and (f)(1) of such
section are each amended by striking ``domestic service
employment taxes'' and inserting ``eligible employment taxes''.
(3) The heading of subsection (b) of such section is
amended by striking ``Domestic Service'' and inserting
``Eligible''.
(4) Subsection (d) and the first sentence of subsection
(f)(1) of such section are each amended by inserting before the
period at the end the following: ``or for agricultural labor''.
(5) Subsection (e) of such section is amended by inserting
before the period at the end the following: ``and agricultural
labor employers' income taxes''.
(c) Effective Date.--The amendments made by this section shall
apply to remuneration paid after December 31, 2001.
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