article: SECTION 1. COORDINATION OF COLLECTION OF DOMESTIC SERVICE EMPLOYMENT TAXES WITH COLLECTION OF INCOME TAXES. (a) 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 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 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).'' (b) 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.'' (c) Effective Date.--The amendments made by this section shall apply to remuneration paid in calendar years beginning after December 31, 1993. (d) 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. 2. THRESHOLD REQUIREMENT FOR SOCIAL SECURITY TAXES. (a) Amendments of Internal Revenue Code.-- (1) Treatment as wages.--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 (other than 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 (y)) for such year;''. (2) Applicable dollar threshold.--Section 3121 of such Code is amended by adding at the end the following new subsection: ``(y) Applicable Dollar Threshold for Domestic Employees.--For purposes of subsection (a)(7)(B), the term `applicable dollar threshold' means $800. In the case of calendar years after 1994, the Secretary of Health and Human Services shall adjust such $800 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 subparagraph, 1992 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.'' (3) Employment of domestic employees 16 and under excluded from coverage.--Section 3121(b) of such Code (defining employment) is amended-- (A) by striking ``or'' at the end of paragraph (19), (B) by striking the period at the end of paragraph (20) and inserting ``; or'', and (C) 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 16 and under during any portion of such year.'' (4) Conforming amendments.--The second sentence of section 3102(a) of such Code is amended-- (A) by striking ``calendar quarter'' each place it appears and inserting ``calendar year'', and (B) by striking ``$50'' and inserting ``the applicable dollar threshold (as defined in section 3121(y)) for such year''. (b) Amendment of Social Security Act.-- (1) In general.--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 (other than 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(y) of the Internal Revenue Code of 1986) for such year;''. (2) Employment of domestic employees 16 and under excluded from coverage.--Section 210(a) of such Act (42 U.S.C. 410(a)) is amended-- (A) by striking ``or'' at the end of paragraph (19), (B) by striking the period at the end of paragraph (20) and inserting ``; or'', and (C) 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 16 and under during any portion of such year.'' (c) Effective Date.--The amendments made by this section shall apply to remuneration paid in calendar years beginning after December 31, 1993.
summary: Amends the Internal Revenue Code and title II of the Social Security Act (Old Age, Survivors and Disability Insurance) to set forth rules for filing returns with respect to domestic service employment taxes and requires such returns to be made on a calendar year basis. Subjects such taxes to estimated tax provisions. Makes filing requirements inapplicable to any employer liable for tax concerning remuneration for services other than domestic service in a private home. Authorizes the Secretary of the Treasury to enter into agreements with States to collect the State unemployment tax imposed on remuneration for domestic service and transfers such amounts to a State's account in the Unemployment Trust Fund. Treats such taxes as domestic service employment taxes. Requires the Secretary to inform domestic service employers in private homes of their tax obligations. Adjusts the threshold (from $50 a calendar quarter to $800 a year) for paying and withholding social security taxes on wages paid for domestic service in a private home. Requires the Secretary of Health and Human Services to adjust such threshold amount in the same manner as adjustments to certain social security insurance amounts. Excludes domestic service in a private home by an individual 16 years and under from amendments made by this Act.