1994 Changes in OASDI, SSI, Medicare, Food Stamp, and Vetera

Social Security Bulletin, Winter 1994 | Go to article overview

1994 Changes in OASDI, SSI, Medicare, Food Stamp, and Vetera


The Annual Statistical Supplement to the Social Security Bulletin contains program summaries for various social welfare programs as well as program histories for the Old-Age, Survivors, and Disability Insurance (OASDI); Supplemental Security Income (SSI); Medicare; veterans' benefits; and Food Stamp programs. Through the 1992 edition, the Supplements were published at the end of the year or early in the following year and, therefore, included changes resulting from the automatic adjustment provisions as well as from new legislation.

Beginning with the 1993 edition, the Supplement has been released earlier in order to make the statistical tables available as promptly as possible. The 1994 edition was issued in September 1994. This note serves to update that edition to take account of changes in provisions since then.

Annual automatic adjustments of monthly benefits; maximum annual taxable earnings; premium, deductible, and coinsurance amounts; and other program elements are provided in the legislation governing the above programs. The cost-of-living adjustment (COLA) for OASDI and SSI monthly benefits, effective December 1994 for OASDI and January 1995 for SSI, is 2.8 percent. The announcement of this and other information regarding automatic adjustments under the OASDI and SSI programs appeared in the Federal Register on October 31, 1994.(1) Information about changes applicable to Medicare appeared in the Federal Register on December 1, 1994.(2) Food Stamp increases became effective October 1, 1994, and rises in veterans' benefits, in December 1994.

In addition to providing the new program amounts, this note discusses the major program changes introduced by the Social Security Domestic Employment Reform Act of 1994 (P.L.103-387), which became law on October 22, 1994.

The tables included here are selected, updated tables--in some cases, shortened versions--from the 1994 Supplement. Accordingly, the table numbers are taken from the corresponding tables in the Supplement.

Old-Age, Survivors, and Disability Insurance (OASDI) Coverage, Financing, and Insured Status

The Social Security Domestic Employment Reform Act of 1994 simplifies the procedures for the reporting of wages paid to domestic employees and the payment of Social Security taxes on those wages. Under previous provisions, individuals who hired domestic employees generally were required to withhold and pay Social Security taxes when the worker's cash wages were $50 or more in a calendar quarter; the exception was that the wages paid to domestic employees of farm operators were subject to the annual thresholds that are used for determining coverage for agricultural employees. When the $50 threshold was reached, the employer had to file a quarterly report with the Internal Revenue Service, submitting with it the required Social Security tax for both the employer and the employee.

The 1994 legislation requires individuals who employ domestic workers to report any Social Security (and applicable State unemployment insurance) taxes for wages paid these workers on a calendar-year basis. It also enables an individual who employs only domestic workers to report these taxes on his or her own Federal income tax return. The quarterly threshold of $50 is replaced with an annual threshold of $1,000, which is subject to automatic adjustments in proportion to increases in the average wage level. Increases in the threshold occur only in $100 increments. The same threshold applies to wages paid for domestic work on a farm. However, the new legislation exempts from Social Security coverage any wages paid to a worker for domestic service performed in any year during which the worker is under age 18, unless household employment is the principal occupation of the worker. Being a student is considered to be an occupation under this definition.

The $1,000 threshold is effective for calendar year 1994 and will be subject to automatic adjustments for years after 1995. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

1994 Changes in OASDI, SSI, Medicare, Food Stamp, and Vetera
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.