96-18358. Miscellaneous Coverage Provisions of the Social Security Independence and Program Improvements Act of 1994; Coverage Provisions of the Social Security Domestic Employment Reform Act of 1994  

  • [Federal Register Volume 61, Number 143 (Wednesday, July 24, 1996)]
    [Rules and Regulations]
    [Pages 38363-38368]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-18358]
    
    
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    SOCIAL SECURITY ADMINISTRATION
    20 CFR Part 404
    
    RIN 0960-AE00
    
    
    Miscellaneous Coverage Provisions of the Social Security 
    Independence and Program Improvements Act of 1994; Coverage Provisions 
    of the Social Security Domestic Employment Reform Act of 1994
    
    AGENCY: Social Security Administration (SSA).
    
    ACTION: Final rules.
    
    -----------------------------------------------------------------------
    
    SUMMARY: These final regulations reflect sections 303, 305, 319 and 320 
    of the Social Security Independence and Program Improvements Act of 
    1994, which made several amendments to the Social Security Act (the 
    Act) concerning the Social Security coverage of State and local 
    government election officials and election workers effective beginning 
    January 1, 1995, police officers and firefighters effective with 
    respect to modifications filed under section 218 of the Act on and 
    after August 16, 1994, Federal employees transferred to international 
    organizations effective January 1, 1995, and nonresident aliens who 
    enter the United States under a cultural exchange program effective 
    October 1, 1994. These final regulations also reflect section 
    1001(d)(2)(E) of the Technical and Miscellaneous Revenue Act of 1988, 
    which excludes from coverage certain services performed by certain 
    nonresident aliens temporarily in the United States to pursue a 
    vocational or nonacademic technical education. In addition, these final 
    regulations also reflect section 2 of the Social Security Domestic 
    Employment Reform Act of 1994, which concerns the coverage of domestic 
    services performed in a private home of the employer.
    
    EFFECTIVE DATE: These regulations are effective July 24, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Lois Berg, Legal Assistant, Division 
    of Regulations and Rulings, Social Security Administration, 3-B-1 
    Operations Building, 6401 Security Boulevard, Baltimore, MD 21235, 
    (410) 965-1713 for information about these rules. For information on 
    eligibility, claiming benefits, or coverage of earnings, call
    
    [[Page 38364]]
    
    our national toll-free number, 1-800-772-1213.
    
    SUPPLEMENTARY INFORMATION: Public Law 103-296, which established SSA as 
    an independent agency, also made a number of miscellaneous program 
    improvements. These final rules reflect sections 303, 305, 319 and 320 
    of Public Law 103-296, which amended sections 210 and 218 of the Act 
    with respect to the Social Security coverage of certain workers.
        Section 303 of Public Law 103-296 amended section 210(a)(7)(F)(iv) 
    of the Act to provide that services performed by State and local 
    government election officials and workers who earn less than $1000 in a 
    calendar year for those services are excluded from the mandatory Social 
    Security and Medicare coverage generally provided under section 
    210(a)(7)(F) for State and local government employees who are not 
    members of a State or local government retirement system. Similarly, 
    section 303 amended section 210(p)(2)(E) of the Act to provide that 
    services of election officials and workers who earn less than the 
    $1,000 annual amount also are excluded from the mandatory Medicare only 
    coverage generally provided under section 210(p)(2) for State and local 
    government employees hired after March 31, 1986. Section 303 also 
    amended section 218(c)(8) of the Act to provide that services of 
    election officials and workers who earn less than the $1,000 annual 
    amount may, at the option of the State, be excluded from a voluntary 
    section 218 coverage agreement entered into by a State. Finally, 
    section 303 provides that the $1,000 amount will be adjusted for all 
    three exclusions beginning in calendar year 2000 to reflect changes in 
    wages in the economy. Prior to these statutory amendments, these three 
    exclusions applied to election officials and workers who earned less 
    than $100 in a calendar year, rather than $1,000. This increase in the 
    threshold amount to $1000 for these exclusions is effective for 
    services performed on or after January 1, 1995. However, the higher 
    threshold for the optional exclusion from voluntary coverage under a 
    section 218 agreement will apply only if the State executes a 
    modification to its coverage agreement electing to take the exclusion 
    with the increased $1000 based limit. We are amending 
    Secs. 404.1018b(c)(1)(v), 404.1020(a)(3)(iv) and 404.1210(e) to reflect 
    the statutory changes made by section 303.
        Section 305 of Public Law 103-296 amended section 218(l) of the Act 
    to give all States the option to extend Social Security coverage to 
    police officers and firefighters who are under the State or political 
    subdivision employer's retirement system. This amendment is effective 
    with respect to section 218 coverage modifications filed by States on 
    or after August 16, 1994. Prior to this amendment, section 218(l) 
    authorized only 23 named States to provide this coverage. We are 
    amending Secs. 404.1206 (a) and (f), 404.1211(d), and 404.1212 to 
    reflect this amendment and to update the terminology so that 
    ``policeman'' or ``policemen'' are now referred to as ``police 
    officer(s)'', and ``fireman'' or ``firemen'' are now referred to as 
    ``firefighter(s)''.
        Section 319 of Public Law 103-296 amended section 210 of the Act by 
    adding a new subsection, subsection (r), to provide for the 
    continuation of Social Security coverage as employment of services 
    performed by Federal civilian employees temporarily transferred to an 
    international organization regardless of whether the international 
    organization is within or outside the United States. Prior to this 
    amendment, which is effective with respect to services performed on or 
    after January 1, 1995, coverage would not continue if the services were 
    performed outside the United States and it would continue as self-
    employment if performed within the United States. Specifically, under 
    new subsection (r), work performed in the employ of an international 
    organization, pursuant to a temporary transfer from a Federal agency 
    under section 3582 of title 5 of the United States Code, is covered 
    employment if the individual worked in covered employment for a Federal 
    agency immediately prior to the transfer and would be entitled, upon 
    separation from the international organization and proper application, 
    to reemployment with the Federal agency under section 3582. We are 
    amending Secs. 404.1004, 404.1018, 404.1034 and 404.1068(d) to reflect 
    this statutory change.
        Section 320 of Public Law 103-296 amended section 210(a)(19) of the 
    Act to exclude from Social Security coverage certain services performed 
    by nonresident aliens who enter the United States on a temporary basis 
    as part of a cultural exchange program under a visa issued under 
    section 101(A)(15)(Q) of the Immigration and Nationality Act. This 
    provision is effective October 1, 1994. We are revising Sec. 404.1036 
    to reflect this statutory change. We also are revising Sec. 404.1036 to 
    reflect section 1001(d)(2)(E) of Public Law 100-647, the Technical and 
    Miscellaneous Revenue Act of 1988, which, effective for remuneration 
    for services received after December 31, 1986, amended section 
    210(a)(19) of the Act to exclude from coverage certain services 
    performed by nonresident aliens temporarily in the United States as 
    nonimmigrants to pursue a vocational or nonacademic technical 
    education. These individuals are ``M'' visa holders under section 
    101(a)(15)(M) of the Immigration and Nationality Act. Finally, we are 
    revising Sec. 404.1036 to reflect section 9(a)(1) of Public Law 100-525 
    which in 1988 amended section 101(a)(15)(J) of the Immigration and 
    Nationality Act by substituting ``Director of United States Information 
    Agency'' for ``Secretary of State.''
        Section 2 of Public Law 103-387, the Social Security Domestic 
    Employment Reform Act of 1994, made several changes with respect to the 
    coverage of domestic services which are also reflected in these final 
    rules. First, section 2 amended section 209(a)(6)(B) of the Act to 
    raise the threshold per employer for coverage of payments made to an 
    employee for domestic services in the employer's private home from $50 
    per calendar quarter to $1,000 per calendar year beginning in 1994. 
    However, under a special provision for calendar year 1994, if a 
    domestic employee was paid less than $1,000 by an employer, the 
    employer must report the earnings on form W-2 if the services would 
    have been covered under the law as it existed prior to the enactment of 
    Public Law 103-387. Although payment of Social Security taxes on such 
    1994 earnings is not required, the employee will receive Social 
    Security coverage credit for those 1994 earnings which must be 
    reported. In calendar years after 1995, the $1000 threshold will be 
    subject to adjustment in $100 increments based on the formula in 
    section 215(a)(1)(B)(i) of the Act to reflect changes in wages in the 
    economy. We are amending Secs. 404.1042(c)(2) and 404.1057(a) to 
    reflect the statutory increase in the coverage threshold for domestic 
    services.
        Section 2 of Public Law 103-387 also amended section 209(a)(6)(B) 
    to provide that, effective with respect to remuneration paid after 
    1993, the coverage of earnings for domestic services in the private 
    home of an employer on a farm operated for profit is determined in the 
    same manner as earnings for any other domestic services and those 
    earnings are subject to the new threshold instead of the threshold 
    applicable to other agricultural labor. Prior to the statutory 
    amendment, which is subject to the special provision for 1994 discussed 
    above, the coverage threshold generally applicable to domestic services 
    did not apply to domestic services which also
    
    [[Page 38365]]
    
    constituted agricultural labor under section 210(f) of the Act. We are 
    amending Secs. 404.1055 and 404.1056(a)(6) to reflect this statutory 
    change. In addition, we are amending Sec. 404.1055(c)(1) to provide a 
    technical clarification consistent with the example currently provided 
    in that paragraph. We are also amending Sec. 404.1056(a)(6) to update 
    cross-references to Secs. 404.1058 and 404.1059 to reflect the fact 
    that those sections were redesignated as Secs. 404.1057 and 404.1058, 
    respectively, on March 1, 1990 (55 FR 7306, 7310).
        Finally, section 2 of Public Law 103-387 added a new paragraph (21) 
    to section 210(a) of the Act to provide that domestic services 
    performed after December 31, 1994, in the private home of the employer 
    are excluded from Social Security coverage, regardless of the amount 
    earned, in any year in which the employee is under age 18 if the 
    domestic service is not the employee's principal occupation. We are 
    adding Sec. 404.1038 to reflect this provision and we are also amending 
    Secs. 404.1001(d)(2), 404.1003, 404.1004(a) and 404.1012 to provide 
    cross-references to new Sec. 404.1038.
    
    Regulatory Procedures
    
    Justification for Final Rules
    
        Pursuant to section 702(a)(5) of the Act, SSA follows the 
    Administrative Procedure Act (APA) rulemaking procedures specified in 5 
    U.S.C. 553 in the development of its regulations. The APA provides 
    exceptions to its notice and public comment procedures when an agency 
    finds there is good cause for dispensing with such procedures on the 
    basis that they are impracticable, unnecessary, or contrary to the 
    public interest. We have determined that, under 5 U.S.C. 553(b)(B), 
    good cause exists for waiver of the notice and public comment 
    procedures for these regulations. Opportunity for prior public comment 
    is unnecessary because these regulations contain no discretionary 
    policy and only reflect provisions in Public Law 103-296, Public Law 
    103-387, and Public Law 100-647 and make nonsubstantive, technical 
    changes. Therefore, we are issuing these changes to our regulations as 
    final rules. Also, since these regulations reflect the statute, the 30-
    day delay in effectuating regulations, as provided in 5 U.S.C. 553(d), 
    does not apply.
    
    Regulatory Flexibility Act
    
        We certify that these regulations will not have a significant 
    economic impact on a substantial number of small entities, including 
    small governmental jurisdictions. Any economic impact involved in the 
    regulations results directly from the statutory amendments, not from 
    the regulations. Therefore, a regulatory flexibility analysis as 
    provided in Public Law 96-354, the Regulatory Flexibility Act, is not 
    required.
    
    Executive Order 12866
    
        We have consulted with the Office of Management and Budget (OMB) 
    and determined that these rules do not meet the criteria for a 
    significant regulatory action under Executive Order 12866. Thus, they 
    were not subject to OMB review.
    
    Paperwork Reduction Act
    
        These regulations impose no reporting/recordkeeping requirements 
    necessitating clearance by OMB.
    
        (Catalog of Federal Domestic Assistance Program No. 96.001 
    Social Security--Disability Insurance; 96.002 Social Security--
    Retirement Insurance; and 96.004 Social Security--Survivors 
    Insurance)
    
    List of Subjects in 20 CFR Part 404
    
        Administrative practice and procedure, Blind benefits, Disability 
    benefits, Old-Age, Survivors and disability insurance, Reporting and 
    recordkeeping requirements, Social security.
    
        Dated: July 8, 1996.
    
        Approved:
    Shirley S. Chater,
    Commissioner of Social Security.
    
        For the reasons set forth in the preamble, subparts K and M of part 
    404 of chapter III of title 20 of the Code of Federal Regulations are 
    amended as set forth below.
    
    PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
    (1950-)
    
    Subpart K--[Amended]
    
        1. The authority citation for subpart K of part 404 continues to 
    read as follows:
    
        Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230, 
    231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v), 
    405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)).
    
        2. Section 404.1001 is amended by revising paragraph (d)(2) to read 
    as follows:
    
    
    Sec. 404.1001   Introduction.
    
    * * * * *
        (d) * * *
        (2) In Secs. 404.1012 through 404.1038 we discuss various types of 
    work that are not covered as employment for social security purposes.
    * * * * *
        3. Section 404.1003 is amended by revising the fourth sentence to 
    read as follows:
    
    
    Sec. 404.1003   Employment.
    
        * * * Exceptions to the general rule are contained in 
    Secs. 404.1012 through 404.1038 which explain the kinds of work 
    excluded from employment. * * *
        4. Section 404.1004 is amended by revising the introductory text of 
    paragraph (a) and by adding a new paragraph (a)(5) to read as follows:
    
    
    Sec. 404.1004   What work is covered as employment.
    
        (a) General requirements of employment. Unless otherwise excluded 
    from coverage under Secs. 404.1012 through 404.1038, the work you 
    perform as an employee for your employer is covered as employment under 
    social security if one of the following situations applies:
    * * * * *
        (5) Your work performed after December 31, 1994, is in the employ 
    of an international organization pursuant to a transfer from a Federal 
    agency under section 3582 of title 5 of the United States Code and both 
    the following are met:
        (i) Immediately before the transfer, your work for the Federal 
    agency was covered employment; and
        (ii) You would be entitled, upon separation from the international 
    organization and proper application, to reemployment with the Federal 
    agency under section 3582.
    * * * * *
        5. Section 404.1012 is amended by revising the second sentence to 
    read as follows:
    
    
    Sec. 404.1012   Work excluded from employment.
    
        * * * They are described in Secs. 404.1014 through 404.1038 and are 
    exceptions to the general rule in Sec. 404.1004 on the kinds of work 
    that are covered as employment. * * *
        6. Section 404.1018 is amended by redesignating paragraph (g) as 
    paragraph (h) and by adding a new paragraph (g) to read as follows:
    
    
    Sec. 404.1018   Work by civilians for the United States Government or 
    its instrumentalities--wages paid after 1983.
    
    * * * * *
        (g) Work for international organizations. Work performed for an 
    international organization by an employee who was transferred from a 
    Federal agency is generally covered as
    
    [[Page 38366]]
    
    employment if, immediately before the transfer, the employee's services 
    for the Federal agency were covered. (See Sec. 404.1004(a)(5) and 
    Sec. 404.1034(c).)
    * * * * *
        7. Section 404.1018b is amended by revising paragraph (c)(1)(v) to 
    read as follows:
    
    
    Sec. 404.1018b   Medicare qualified government employment.
    
    * * * * *
        (c) * * *
        (1) * * *
        (v) By an election official or election worker paid less than $100 
    in a calendar year for such service prior to 1995, or less than $1,000 
    for service performed in any calendar year after 1994 and before 2000, 
    or, for service performed in any calendar year after 1999, less than 
    the $1,000 base amount, as adjusted pursuant to section 218(c)(8)(B) of 
    the Social Security Act to reflect changes in wages in the economy. We 
    will publish this adjustment of the $1,000 base amount in the Federal 
    Register on or before November 1 preceding the year for which the 
    adjustment is made.
    * * * * *
        8. Section 404.1020 is amended by revising paragraph (a)(3)(iv) to 
    read as follows:
    
    
    Sec. 404.1020   Work for States and their political subdivisions and 
    instrumentalities.
    
        (a) * * *
        (3) * * *
        (iv) As an election official or election worker if the remuneration 
    paid in a calendar year for such service prior to 1995 is less than 
    $100, or less than $1000 for service performed in any calendar year 
    after 1994 and before 2000, or, for service performed in any calendar 
    year after 1999, less than the $1000 base amount, as adjusted pursuant 
    to section 218(c)(8)(B) of the Social Security Act to reflect changes 
    in wages in the economy. We will publish this adjustment of the $1000 
    base amount in the Federal Register on or before November 1 preceding 
    the year for which the adjustment is made.
        9. Section 404.1034 is amended by revising the first sentence in 
    the introductory text of paragraph (a), by redesignating paragraph (c) 
    as paragraph (d) and revising it, and by adding a new paragraph (c) to 
    read as follows:
    
    
    Sec. 404.1034  Work for an international organization.
    
        (a) If you work as an employee of an international organization 
    entitled to enjoy privileges, exemptions, and immunities as an 
    international organization under the International Organizations 
    Immunities Act (59 Stat. 669), your work is excluded from employment 
    except as described in paragraphs (b) and (c) of this section. * * *
    * * * * *
        (c) Your work performed after December 31, 1994 will not be 
    excluded under this section if you perform service in the employ of an 
    international organization pursuant to a transfer from a Federal agency 
    under section 3582 of title 5 of the United States Code and
        (i) Immediately before such transfer you performed service with a 
    Federal agency which was covered as employment; and
        (ii) You would be entitled, upon separation from the international 
    organization and proper application, to reemployment with the Federal 
    agency under section 3582.
        (d) If you are a citizen of the United States and work in the 
    United States as an employee of an international organization that 
    meets the conditions in paragraph (a) of this section and you are not 
    subject to coverage based on paragraph (c) of this section, you are 
    considered to be self-employed (Sec. 404.1068(d)).
        10. Section 404.1036 is revised to read as follows:
    
    
    Sec. 404.1036  Certain nonresident aliens.
    
        (a) Foreign students. (1) Foreign students (nonimmigrant aliens) 
    may be temporarily in the United States under subparagraph (F) of 
    section 101(a)(15) of the Immigration and Nationality Act to attend a 
    school or other recognized place of study approved by the Attorney 
    General. On-campus work or work under permission granted by the 
    Immigration and Naturalization Service which is done by these students 
    is excluded from employment. Other work done by these foreign students 
    is not excluded from employment under this section.
        (2) Foreign students (nonimmigrant aliens) may be temporarily in 
    the United States under subparagraph (M) of section 101(a)(15) of the 
    Immigration and Nationality Act to pursue a vocational or nonacademic 
    technical education approved by the Attorney General. Work done by 
    these students to carry out the purpose for which they were admitted is 
    excluded from employment. Other work done by these foreign students is 
    not excluded from employment under this section.
        (b) Exchange visitors. (1) Exchange visitors (nonimmigrant aliens) 
    may be temporarily in the United States under subparagraph (J) of 
    section 101(a)(15) of the Immigration and Nationality Act to 
    participate in exchange visitor programs designated by the Director of 
    the United States Information Agency. Work done by these exchange 
    visitors to carry out the purpose for which they were admitted and for 
    which permission has been granted by the sponsor, is excluded from 
    employment. Other work done by these exchange visitors is not excluded 
    from employment under this section.
        (2) Exchange visitors (nonimmigrant aliens) may be temporarily in 
    the United States under subparagraph (Q) of section 101(a)(15) of the 
    Immigration and Nationality Act to participate in an international 
    cultural exchange program approved by the Attorney General. Effective 
    October 1, 1994, work done by these exchange visitors to carry out the 
    purpose for which they were admitted is excluded from employment. Other 
    work done by these exchange visitors is not excluded from employment 
    under this section.
        (c) Spouse and children. Work done by a foreign student's or 
    exchange visitor's alien spouse or minor child who is also temporarily 
    in the United States under subparagraph (F), (J), (M), or (Q) of 
    section 101(a)(15) of the Immigration and Nationality Act is not 
    excluded from employment under this section unless that spouse or child 
    and the work that is done meets the conditions of paragraph (a) or (b) 
    of this section.
        11. Section 404.1038 is added under the undesignated center heading 
    ``Work Excluded From Employment'' to read as follows:
    
    
    Sec. 404.1038  Domestic employees under age 18.
    
        Domestic services you perform in a private home of your employer 
    are excluded from employment, regardless of the amount earned, in any 
    year in which you are under age 18 if domestic service is not your 
    principal occupation. The exclusion applies to the entire year if you 
    are under age 18 in any part of the year. See Sec. 404.1057.
        12. In Sec. 404.1042, paragraph (c)(2) is revised to read as 
    follows:
    
    
    Sec. 404.1042  Wages when paid and received.
    
    * * * * *
        (c) * * *
        (2) We also apply this rule to domestic work in a private home of 
    the employer, except see Sec. 404.1057(a)(1) for the applicable dollar 
    amount.
    * * * * *
        13. Section 404.1055 is amended by revising paragraph (a), the 
    heading for paragraph (b), paragraph (b)(1), and the second sentence of 
    paragraph (c)(1) to read as follows:
    
    [[Page 38367]]
    
    Sec. 404.1055  Payments for agricultural labor.
    
        (a) When cash payments are not wages. We do not include as wages 
    your cash payments in a calendar year after 1987 from an employer for 
    agricultural labor (see Sec. 404.1056) if your employer's total 
    expenditures for agricultural labor are less than $2500 in that year 
    and your employer paid you less than $150 cash remuneration in that 
    year for your agricultural labor. If you perform domestic service in 
    the private home of an employer on a farm operated for profit, we do 
    not include as wages the cash payments for those services if they are 
    less than the applicable dollar threshold described in 
    Sec. 404.1057(a).
        (b) Exclusions for noncash payments and payments for seasonal 
    agricultural labor. (1) Noncash payments for agricultural labor are not 
    wages.
    * * * * *
        (c) * * *
        (1) * * * If the amounts paid are less than $150, we count only 
    those amounts paid for agricultural labor in determining if the $2500 
    expenditure test is met. * * *
    * * * * *
        14. Section 404.1056 is amended by revising paragraph (a)(6) to 
    read as follows:
    
    
    Sec. 404.1056   Explanation of agricultural labor.
    
        (a) * * *
        (6) If you do nonbusiness work or domestic work in the private home 
    of your employer, it is agricultural labor if you do the work on a farm 
    operated for profit. However, if you do domestic work in the private 
    home of your employer on a farm operated for profit, coverage of your 
    earnings for the domestic services is determined in the same manner as 
    earnings for any other domestic employee. Whether those earnings are 
    covered will be determined based on the threshold described in 
    Sec. 404.1057(a) and the other coverage rules applicable to domestic 
    service instead of the threshold applicable to other agricultural 
    employees. A farm is not operated for profit if the employer primarily 
    uses it as a residence or for personal or family recreation or 
    pleasure. (See Sec. 404.1057 for an explanation of domestic work and 
    Sec. 404.1058(a) for an explanation of nonbusiness work.)
    * * * * *
        15. Section 404.1057 is amended by revising paragraphs (a) (1), (2) 
    and (3) and the last sentence in paragraph (a)(4) to read as follows:
    
    
    Sec. 404.1057   Domestic service in the employer's home.
    
        (a) * * *
        (1) The applicable dollar threshold. We do not include as wages 
    cash payments that an employer makes to you in any calendar year for 
    domestic service in the employer's private home if the cash pay in that 
    calendar year is less than the applicable dollar threshold. The 
    threshold per employer is $1000 in calendar year 1995. In calendar 
    years after 1995, this amount will be subject to adjustment in $100 
    increments based on the formula in section 215(a)(1)(B)(i) of the Act 
    to reflect changes in wages in the economy. Non-cash payments for 
    domestic service are not counted as wages.
        (2) How evaluation is made. We apply the applicable dollar 
    threshold described in paragraph (a)(1) of this section based on when 
    the payments are made to you rather than when the pay is earned. To 
    count toward the applicable dollar threshold, payment must be made to 
    you in cash (including checks or other forms of money). We apply the 
    applicable dollar threshold only to services performed as a domestic 
    employee. If an employer pays you for performing other work, the cash 
    pay for the nondomestic work does not count toward the applicable 
    dollar threshold domestic service pay required for the remuneration to 
    count as wages.
        (3) More than one domestic employer. The applicable dollar 
    threshold as explained in paragraph (a)(1) of this section applies to 
    each employer when you perform domestic services for more than one 
    employer in a calendar year. The wages paid by more than one employer 
    for domestic services may not be combined to decide whether you have 
    been paid the applicable dollar threshold or more in a calendar year. 
    The standard applies to each employee when an employer has two or more 
    domestic employees during a calendar year.
        (4) * * * If an employer uses this method to report a cash payment 
    to you for domestic services in his or her private home in a calendar 
    year, he or she must use the same method to report payments to other 
    employees in that year for similar services.
    * * * * *
        16. Section 404.1068 is amended by revising paragraph (d) to read 
    as follows:
    
    
    Sec. 404.1068   Employees who are considered self-employed.
    
    * * * * *
        (d) Employees of a foreign government, an instrumentality wholly 
    owned by a foreign government, or an international organization. If you 
    are a United States citizen and perform the services that are described 
    in Sec. 404.1032, Sec. 404.1033(a), or Sec. 404.1034(a), you are 
    engaged in a trade or business if the services are performed in the 
    United States and are not covered as employment based upon 
    Sec. 404.1034(c).
    * * * * *
    
    Subpart M--[Amended]
    
        17. The authority citation for subpart M of part 404 continues to 
    read as follows:
    
        Authority: Secs. 205, 210, 218, and 702(a)(5) of the Social 
    Security Act (42 U.S.C. 405, 410, 418, and 902(a)(5)); sec. 12110, 
    Pub. L. 99-272, 100 Stat. 287 (42 U.S.C. 418 note); sec. 9002, Pub. 
    L. 99-509, 100 Stat. 1970.
    
        18. Section 404.1206 is amended by revising the introductory text 
    of paragraph (a), paragraphs (a)(6) and (a)(7), by adding a new 
    paragraph (a)(8), and by revising the last sentence in paragraph (f)(2) 
    to read as follows:
    
    
    Sec. 404.1206   Retirement system coverage groups.
    
        (a) General. Section 218(d) of the Act authorizes coverage of 
    services of employees in positions under a retirement system. For 
    purposes of obtaining coverage, a system may be considered a separate 
    retirement system authorized by sections 218(d)(6) (A) or (B) or 218(l) 
    of the Act. Under these sections of the Act a State may designate the 
    positions of any one of the following groupings of employees as a 
    separate retirement system:
    * * * * *
        (6) The employees of each institution of higher learning, including 
    junior colleges and teachers colleges;
        (7) The employees of a hospital which is an integral part of a 
    political subdivision; or
        (8) The employees in police officers' positions or firefighters' 
    positions, or both.
    * * * * *
        (f) * * *
        (2) * * * This rule also applies to the coverage of services in 
    police officers' and firefighters' positions in States and interstate 
    instrumentalities as discussed in Sec. 404.1212(c).
        19. Section 404.1210 is amended by revising paragraph (e) to read 
    as follows:
    
    
    Sec. 404.1210   Optionally excluded services.
    
    * * * * *
        (e) For modifications executed after 1994, services performed by 
    election officials or election workers if the payments for those 
    services in a calendar year are less than $1000 for calendar years 
    after 1994 and before 2000, or, for calendar years after 1999,
    
    [[Page 38368]]
    
    are less than the $1000 base amount as adjusted pursuant to section 
    218(c)(8)(B) of the Act to reflect changes in wages in the economy. We 
    will publish this adjustment of the $1000 base amount in the Federal 
    Register on or before November 1 preceding the year for which the 
    adjustment is made.
        20. Section 404.1211 is amended by revising paragraph (d) to read 
    as follows:
    
    
    Sec. 404.1211   Interstate instrumentalities.
    
    * * * * *
        (d) They may provide coverage for firefighters and police officers 
    in positions under a retirement system.
        21. Section 404.1212 is revised to read as follows:
    
    
    Sec. 404.1212   Police officers and firefighters.
    
        (a) General. For Social Security coverage purposes under section 
    218 of the Act, a police officer's or firefighter's position is any 
    position so classified under State statutes or court decisions. 
    Generally, these positions are in the organized police and fire 
    departments of incorporated cities, towns, and villages. In most 
    States, a police officer is a member of the ``police'' which is an 
    organized civil force for maintaining order, preventing and detecting 
    crimes, and enforcing laws. The terms ``police officer'' and 
    ``firefighter'' do not include services in positions which, although 
    connected with police and firefighting functions, are not police 
    officer or firefighter positions.
        (b) Providing coverage. A State may provide coverage of:
        (1) Police officers' and firefighters' positions not under a 
    retirement system as part of an absolute coverage group; or
        (2) Police officers' of firefighters' positions, or both, as part 
    of a retirement system coverage group.
        (c) Police officers and firefighters in positions under a 
    retirement system. All States and interstate instrumentalities may 
    provide coverage for employees in police officers' or firefighters' 
    positions, or both, which are under a retirement system by following 
    the majority vote referendum procedures in Sec. 404.1206(d). In 
    addition, all interstate instrumentalities and the States listed in 
    Sec. 404.1207 may use the desire for coverage procedures described in 
    Sec. 404.1207.
    
    [FR Doc. 96-18358 Filed 7-23-96; 8:45 am]
    BILLING CODE 4190-29-P
    
    
    

Document Information

Effective Date:
7/24/1996
Published:
07/24/1996
Department:
Social Security Administration
Entry Type:
Rule
Action:
Final rules.
Document Number:
96-18358
Dates:
These regulations are effective July 24, 1996.
Pages:
38363-38368 (6 pages)
RINs:
0960-AE00: Coverage Provisions of Social Security Independence and Program Improvements Act of 1994 and of the Domestic Employment Reform Act of 1994 (503F)
RIN Links:
https://www.federalregister.gov/regulations/0960-AE00/coverage-provisions-of-social-security-independence-and-program-improvements-act-of-1994-and-of-the-
PDF File:
96-18358.pdf
CFR: (24)
20 CFR 404.1057(a)
20 CFR 404.1058(a)
20 CFR 404.1034(c).)
20 CFR 404.1034(c)
20 CFR 404.1001
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