PUBLIC LAW 103-387—OCT. 22, 1994 108 STAT. 4071 Public Law 103-387 103d Congress An Act To make improvements in the old-age, survivors, and disability insurance program under title II of the Social Security Act. 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 "Social Security Domestic Employ- ment 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 appHcable 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 tirreshold' means $1,000. In the case of calendar years after 1995, the Commissioner of Social Security shall ac^ust such $1,000 amount at the same time and in the same manner as under section 215(a)(l)(B)(ii) of the Social Security Act with respect to the amounts referred to in section 215(a)(l)(B)(i) of such Act, except tiaat, for purposes of this paragraph, 1993 shall be substituted for the calendar year referred to in section 215(a)(l)(B)(u)(II) of such Act If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100.". (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 Oct. 22, 1994 [H.R. 4278] Social Security Domestic Employment Reform Act of 1994. 26 USC 1 note. 26 USC 3121.
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