TN 21 (01-98)

Citations:

Sections 209 and 210 of the Social Security Act

Social Security Act

A. POLICY - WAGES

• For the calendar years 1994 through 1997, the earnings threshold for coverage of domestic employees is $1,000 per calendar year per employer.

• Beginning with calendar year 1998, the earnings threshold is $1,100.

• For calendar years after 1998, the earnings threshold will adjust in multiples of $100 in a given year, as average wages adjust.

• For 1994 only, in cases where domestic employees were paid $50 or more but less than $1,000, the employee will still receive the credit. If the total earnings on the worker's record equal $620 or more, but less than $1,000, only one quarter of coverage is credited. However, no FICA tax is due for earnings under $1,000.

• Beginning January 1, 1995, domestic employees on farms operated for profit are no longer treated as agricultural employees. Instead they are subject to the new domestic threshold.

B. POLICY - COVERAGE

EMPLOYMENT EXCLUSION

Effective for services performed after December 31, 1994, domestic service in the private home of the employer is excluded from employment if:

• Such service is performed in any year by an individual who was under the age of 18 during any portion of such year; and

• Domestic service is not the individual's principal occupation.