Date: August 1, 1997
CONGRESS PASSES THE REVENUE RECONCILIATION ACT OF 1997
IOn July 31, 1997, the House and Senate passed the conference accompanying H.R. 2014, the Revenue Reconciliation Act of 1997, by votes of 389 to 43 and 92 to 8, respectively. Provisions of interest to SSA are as follows:
Expanded SSA Records for Tax Collection
Provides that, for an application for an SSN for a person under age 18, SSA must collect the SSNs of each parent in addition to currently required evidence of age, identity, and citizenship. SSA must share this information with IRS for administration of tax benefits based on support or residency of a child.
Provides that States must make available to SSA each parent's name and SSN collected in the birth certification process. SSA must share this information with IRS.
SSA collection of parents' SSNs is effective for SSN applications made more than 180 days after the date of enactment. States' sharing of birth certificate information with SSA and SSA sharing of such informat ion with IRS applies to information obtained on, before, or after the date of enactment.
Work Opportunity Tax Credit
Adds qualified SSI recipients to the "targeted group" list, thus making their employers eligible for the tax credit. Also, increases the percentage of the existing tax credit to 40 percent of a "targeted group" individual's wages for qualified individuals working more that 400 hours a year, 25 percent for qualified individuals working 120-140 hours a year, and deny the credit for qualified individuals working less than 120 hours. In addition, extends the expiration date of the tax credit from September 30, 1997 to July I , 1998, and makes conforming amendments to welfare-to-work provisions in PRWORA.
Exclusion of Termination Payments Made to Insurance Salesmen
Excludes for Social Security purposes payments made to a self-employed insurance salesman after his agreement to work for the insurance company has terminated if: he performed no additional work for the company in that taxable year; he entered into a covenant not to compete with the company ; and the amount of the payment was based entire ly on the policies he sold or was credited with selling during the last yea r of the agreement which rema in in force rather than on his length of service or overall earnings from the company.
Status of Representatives of Security Broker-Dealers
Provides that, in determining whether a registered representative of a securities broker-dealer is an employee or independent contractor, no weight is to be given to instructions from a service recipient which imposed in order to comply with government-imposed investor protection standards.
Employer-Provided Educational Assistance
Reinstates a provision that expired in June 1997. under which ce rtain employer provided educational assi stance was excluded for Social Security and income tax purposes.
Requires partnerships with more than 100 partners to report on magnetic media.
Broadens the exclusion of employer-provided fringe benefits for Social Security and income tax purposes to apply to qualified parking provided in lieu of compensation.