[Congressional Record Volume 140, Number 67 (Wednesday, May 25, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 25, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               THE SOCIAL SECURITY ACT AMENDMENTS OF 1994

  Mr. MOYNIHAN. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of Calendar No. 431, H.R. 4278, the Social 
Security Act Amendments bill, and that all after the enacting clause be 
stricken and the text of calendar 415, S. 1231, the Social Security 
Domestic Employment Reform Act of 1994 be inserted in lieu thereof, the 
bill be read a third time and passed, the motion to reconsider laid 
upon the table, the Senate insist on its amendment, request a 
conference with the House on the disagreeing votes of the two Houses, 
and the Chair be authorized to appoint conferees; that the preceding 
all occur without intervening action or debate, and that any statements 
thereon appear in the Record at the appropriate place as if read.
  The PRESIDING OFFICER. Is there objection?
  Mr. DOLE. Reserving the right to object, I shall not object. I want 
the Record to reflect Senator Packwood, the ranking Republican on the 
Finance Committee, supports the action taken by the chairman as do I 
and every other Republican on this side.
  Mr. MOYNIHAN. As does, if I may say, Mr. President, a unanimous 
Finance Committee which reported out the measure which we have just 
proposed as a substitute. It was completely bipartisan--nonpartisan. 
Every Republican member voted for it. Every Democratic member did. We 
are proud of it. Not to extend this debate, but I would like to make 
the point that 45 years ago the United States Congress decided that 
cleaning women should be eligible for Social Security. Forty-five years 
later, only 25 percent of households with domestic workers report wages 
paid to these employees. And this is simply not acceptable.
  We found an arrangement, user friendly arrangement where the payments 
are to be made on 1040's once a year. We do not turn housewives into 
accountants. But we want to have people who are entitled to their 
Social Security get it when they need it. Our provision--we have an 
amendment--our provision simply provides that when you earn the amount 
of money that entitles you to one quarter of coverage, that amount is 
paid, and when you acquired 40 quarters of coverage you are vested in 
Social Security.
  I thank the majority leader, who voted for this, the Republican 
leader, who voted for this, and say we are very pleased that this 
matter, long overdue, is now about to be done.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill (H.R. 4278) was read the third time and passed as follows:

       Resolved, That the bill from the House of Representatives 
     (H.R. 4278) entitled ``An Act to make improvements in the 
     old-age, survivors, and disability insurance program under 
     title II of the Social Security Act'', do pass with the 
     following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Social Security Domestic 
     Employment Reform Act of 1994''.

     SEC. 2. SIMPLIFICATION OF EMPLOYMENT TAXES ON DOMESTIC 
                   SERVICES.

       (a) Threshold Requirement for Social Security Taxes.--
       (1) Amendments of internal revenue code.--
       (A) General rule.--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 (including domestic service described in 
     subsection (g)(5)), 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 (x)) for such year;''.
       (B) Applicable dollar threshold.--Section 3121 of such Code 
     is amended by adding at the end thereof the following new 
     subsection:
       ``(x) Applicable Dollar Threshold.--For purposes of 
     subsection (a)(7)(B), the term `applicable dollar threshold' 
     means the amount required for a quarter of coverage as 
     determined under section 213(d)(2) of the Social Security Act 
     for calendar year 1995. In the case of calendar years after 
     1995, the Secretary of Health and Human Services shall adjust 
     such amount at the same time and in the same manner as the 
     amount under section 213(d)(2) of the Social Security Act, 
     except that such adjustment shall not take effect in any year 
     in which the otherwise adjusted amount does not exceed the 
     amount in effect under this subsection for the preceding 
     calendar year by at least $50.''
       (C) Employment of domestic employees under age 18 excluded 
     from coverage.--Section 3121(b) of such Code (defining 
     employment) is amended--
       (i) by striking ``or'' at the end of paragraph (19),
       (ii) by striking the period at the end of paragraph (20) 
     and inserting ``; or'', and
       (iii) by adding at the end the following new paragraph:
       ``(21) domestic service in a private home of the employer 
     performed in any year by an individual under the age of 18 
     during any portion of such year.''.
       (D) Conforming amendments.--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(x)) for such 
     year''.
       (2) Amendment of social security act.--
       (A) General rule.--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 (including domestic service described in section 
     210(f)(5)), 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(x) of 
     the Internal Revenue Code of 1986) for such year;''.
       (B) Employment of domestic employees under age 18 excluded 
     from coverage.--Section 210(a) of such Act (42 U.S.C. 410(a)) 
     is amended--
       (i) by striking ``or'' at the end of paragraph (19),
       (ii) by striking the period at the end of paragraph (20) 
     and inserting ``; or'', and
       (iii) by adding at the end the following new paragraph:
       ``(21) Domestic service in a private home of the employer 
     performed in any year by an individual under the age of 18 
     during any portion of such year.''.
       (3) Effective dates.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to 
     remuneration paid in calendar years beginning after December 
     31, 1994.
       (B) Excluded employment.--The amendments made by paragraphs 
     (1)(C) and (2)(B) shall apply to services performed after 
     December 31, 1994.
       (b) 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 4th 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) Special rule where taxes are paid on or before april 
     15.--If, on or before the date described in subsection (a)(2) 
     or, if earlier, the date the return is filed, the employer 
     pays in full the domestic service employment taxes computed 
     on such return as payable for any calendar year, then no 
     addition to tax shall be imposed under section 6654(a) with 
     respect to any underpayment of any required installment of 
     such taxes for the taxable year beginning in such calendar 
     year.
       ``(3) 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).
       ``(4) Transitional rule.--For purposes of applying section 
     6654 to a taxable year beginning in 1995, 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 preceding 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' includes domestic 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.

     SEC. 3. ADDITIONAL DEBT COLLECTION PRACTICES.

       (a) In General.--Section 204 of the Social Security Act (42 
     U.S.C. 404) is amended by adding at the end the following new 
     subsection:
       ``(f)(1) With respect to any delinquent amount, the 
     Secretary may use the collection practices described in 
     sections 3711(f), 3716, and 3718 of title 31, United States 
     Code, as in effect on April 1, 1994.
       ``(2) For purposes of paragraph (1), the term `delinquent 
     amount' means an amount--
       ``(A) in excess of the correct amount of payment under this 
     title;
       ``(B) paid to a person after such person has attained 18 
     years of age; and
       ``(C) determined by the Secretary, under regulations, to be 
     otherwise unrecoverable under this section after such person 
     ceases to be a beneficiary under this title.''.
       (b) Conforming Amendment.--Section 3701(d) of title 31, 
     United States Code, is amended by inserting ``, except to the 
     extent provided under section 204(f) of such Act (42 U.S.C. 
     404(f)),'' after ``the Social Security Act (42 U.S.C. 301 et 
     seq.)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to collection activities begun on or after the 
     date of the enactment of this Act and before October 1, 1999.

     SEC. 4. PROHIBITION ON PAYMENT OF BENEFITS TO CERTAIN 
                   INDIVIDUALS CONFINED BY COURT ORDER TO PUBLIC 
                   INSTITUTIONS.

       (a) In General.--Section 202(x)(1) of the Social Security 
     Act (42 U.S.C. 402(x)(1)) is amended--
       (1) by inserting ``(A)'' after ``(1)'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Notwithstanding any other provision of this title, no 
     monthly benefits shall be paid under this section or under 
     section 223 to any individual for any month during which such 
     individual is confined in any public institution by a court 
     order pursuant to a verdict or finding that the individual 
     is--
       ``(i) guilty of an offense described in subparagraph (A), 
     but insane (or having a similar condition, such as a mental 
     disease, a mental defect, or mental incompetence); or
       ``(ii) not guilty of such an offense by reason of insanity 
     (or by reason of a similar finding, such as a mental disease, 
     a mental defect, or mental incompetence).''.
       (b) Conforming Amendments.--
       (1) Section 202(x)(3) of the Social Security Act (42 U.S.C. 
     402(x)(3)) is amended by striking ``any individual'' and all 
     that follows and inserting ``any individual confined as 
     described in paragraph (1) if the jail, prison, penal 
     institution, correctional facility, or other public 
     institution to which such individual is so confined is under 
     the jurisdiction of such agency and the Secretary requires 
     such information to carry out the provisions of this 
     section.''.
       (2) The heading for section 202(x) of such Act is amended 
     by inserting ``and Certain Other Inmates of Public 
     Institutions'' after ``Prisoners''.
       (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.

     SEC. 5. NURSING HOMES REQUIRED TO REPORT ADMISSIONS OF SSI 
                   RECIPIENTS.

       (a) In General.--Section 1631(e)(1) (42 U.S.C. 1383(e)(1)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) For purposes of making determinations under section 
     1611(e), the requirements prescribed by the Secretary 
     pursuant to subparagraph (A) shall require each administrator 
     of a nursing home, extended care facility, or intermediate 
     care facility to report to the Secretary of the admission of 
     any eligible individual or eligible spouse receiving benefits 
     under this title within 2 weeks of such admission.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to admissions occurring on or after October 1, 
     1995.

  The PRESIDING OFFICER (Mr. Graham) appointed Mr. Moynihan, Mr. 
Baucus, Mr. Breaux, Mr. Packwood and Mr. Dole conferees on the part of 
the Senate.
  Mr. MOYNIHAN. Mr. President, I ask unanimous consent that the Senate 
number be indefinitely postponed.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. MITCHELL addressed the Chair.
  The PRESIDING OFFICER. The majority leader.
  Mr. MITCHELL. Mr. President, I commend my colleague, the 
distinguished chairman of the Senate Finance Committee, for the 
legislation which has just been approved by the Senate. He provided not 
only leadership in getting the bill prepared, ushered through the 
Finance Committee, but also extraordinary perseverance and tenacity in 
getting it through the Senate in such fashion.
  It is not easy to do. Tax bills frequently require a lengthy process 
with a lot of amendments, and I think it is clear to all concerned that 
this bill would not have progressed to this point but for the 
leadership and the perseverance of the chairman, and I commend him for 
it. It is an important measure, as he has noted.
  I wish also to thank the distinguished Republican leader for his 
cooperation in making this possible.
  Mr. MOYNIHAN addressed the Chair.
  The PRESIDING OFFICER. The Senator from New York.
  Mr. MOYNIHAN. Mr. President, may I thank the majority leader for his 
gracious remarks. This was an entirely collective effort on behalf of 
the Finance Committee, and it is characteristic of him to be gracious 
to colleagues.
  I would like to return the compliment and say to the Republican 
leader that we very much appreciate his help. This matter will now be 
done, and I fully predict a White House South Lawn ceremony with ice 
cream, balloons and the distinguished Republican leader on hand.
  Mr. President, I yield the floor.
  Mr. MITCHELL. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. MITCHELL. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________