TN 21 (01-98)
RS 01402.216 Domestic Services - 1994 And Later
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
Effective for services performed after December 31, 1994, domestic service in the private home of the employer is excluded from employment if: