Social Security Domestic Employment Reform Act Law and Legal Definition

Social Security Domestic Employment Reform Act of 1994 is a federal law that reduces the paperwork burden on housekeepers and raises the wage threshold at which employment taxes must be paid by housekeepers. The Act requires employers of independent housekeepers and child care providers to pay Social Security taxes to the federal government on a yearly basis if a worker's income exceeds $ 1,000 annually. If such help is hired, the employer must file schedule H with the income tax return. Household workers under 18 years of age are exempt unless domestic service is the worker's full-time occupation.

On October 22, 1994, President Clinton signed the Social Security Domestic Employment Reform Act of 1994, Pub. L. No. 103-387, into law. [Josephson v. Secretary of Health & Human Servs., 1994 U.S. Dist. LEXIS 21063 (W.D. Mich. Nov. 17, 1994)].