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Vetting Guidance IV: Procedures Memos [1]
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Vetting Guidance IV: Procedures Memos [1]
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FOIA Number: 2006-1066-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Counsel Office
Series/Staff Member:
Jane Schaffner
Subseries:
OA/ID Number:
21519
FolderID:
Folder Title:
Vetting Guidance IV: Procedures Memos [1]
Stack:
Row:
Section:
Shelf:
Position:
S
111
2
3
2
THE WHITE HOUSE
WASHINGTON
March 24, 1997
MEMORANDUM FOR AGENCY OFFICIALS RESPONSIBLE FOR EVALUATION OF
NON-CAREER SES CANDIDATES
FROM:
Peter Erichsen
ocer
Associate Counsel to the President
Stacy Reynolds BR
Staff Attorney
SUBJECT: Procedures
This memorandum is intended to give a brief overview of the vetting process for non-
career SES (NC-SES) candidates. Our aim is to ensure uniformity in the vetting process
throughout the agencies. Such uniformity affords equal and fair treatment to all candidates,
protects the integrity of the vetting process, and maximizes our ability to prevent
embarrassment to the Administration.
As you know, agencies are responsible for vetting all NC-SES candidates who are not
being appointed to serve in regional positions (i.e., Regional Administrator). The White
House will continue to vet the regional NC-SES candidates. The vetting process includes a
careful review of the candidate's completed forms, an IRS tax check, an FBI name check, a
public record search, and an extensive interview with the candidate. This memorandum will
address each element in turn.
Enclosed are copies of the following:
1.
A set of sample forms for candidates
2.
Memoranda explaining the recommended public record search
3.
A sample interview form for the interviewer
4.
Information about certain household help issues that commonly arise
5.
A sample form for faxing the clearance notification to Presidential Personnel
This information is intended to provide a model for conducting the vetting process and should
be kept on file and referred to each time a candidate is vetted by the agency.
I.
Forms
Once a candidate has been named for an NC-SES position, the following forms should
be sent to that person immediately with instructions that they are to be completed as quickly as
possible:
1.
Personal Data Statement Questionnaire
2.
FBI Consent Form
3.
Tax Check Waiver Form
4.
Acknowledgment and Consent Regarding Intent to Appoint Form
5.
Ethics Memorandum
The candidate should complete and return items 1 through 4. Item 5 is merely informational
and is intended to educate the candidate about the ethics rules he or she will have to observe
during and after employment in the Federal government. The FBI consent form is provided as
a model; even if your agency uses its own form, you should make sure that the form you use
is approved by the FBI. Similarly, the Ethics memo provided is the one currently used for
candidates for Presidential appointments with Senate approval and may be used as a model for
a memo from the ethics officers at your agency.
II.
Public Record Search
The next step in the process is the public record research. A limited search of the
public record should be conducted on each candidate vetted. The public record research
involves looking for articles by or about the candidate in a variety of newspapers, magazines,
journals, etc. This search can be conducted on Lexis/Nexis and the search we recommend is
explained in the information included. Where practicable, all publications by the candidate
should be reviewed.
The purpose of the public record search is to determine whether there are any issues
that could prove to be controversial, embarrassing to the candidate or the Administration, or
disqualifying. Any material issues revealed in the public record should be discussed with the
candidate during the interview and should be considered in the decision whether to proceed
with the recommendation to appoint.
III.
IRS and FBI Checks
Once the forms are returned by the candidate, the FBI consent form and the IRS tax
check waiver form should be forwarded to the relevant offices in the FBI and IRS. The
vetting officials in each agency should check with their personnel and security offices to
determine whether there is already"a process for getting an FBI name check or a tax check and
who is authorized to request such checks. Each agency should have a list of people within the
agency who are authorized to request FBI name checks and IRS tax check. Such a list should
2
be approved by the General Counsel or his or her delegate. The person at the FBI to contact
regarding name checks is Peggy Larson (202-324-4895).
Some agencies do not currently participate in the IRS tax check program. If there is no
such process, one should be established by contacting Bill Lovelace at the IRS (202-622-3941).
IV.
Personal Data Statement (PDS)
Prior to interviewing the candidate, the Personal Data Statement (PDS) should be
carefully reviewed to determine whether any data is missing and to establish a complete list of
potential issues. In reviewing the PDS, check to make sure every question is answered and,
where applicable, attachments are included. The interviewer should then identify potential
issues in the answers provided and be ready to ask for additional information. For example, if
the PDS indicates that the candidate has or has had household help, the interviewer should flag
that answer as a potential household help issue and be ready to ask the candidate about tax and
immigration issues arising from the employment of household help.
V.
Interview
After reviewing the PDS, the interviewer should conduct an interview with the
candidate covering the questions in the interview form and the issues raised in the public
record search and the PDS. Additionally, if the IRS tax check report or the FBI name check
are back, the interviewer should ask about any issues raised in those reports. If the IRS tax
check report or the FBI name check report are not received until after the interview, the
interviewer should call the candidate back to ask about any additional issues raised in those
reports.
VI.
Clearance
After the public record research and the interview have been completed and the IRS tax
check report and the FBI name check report have been received, a decision must be made as to
whether to clear the candidate for appointment based on all the information received. No one
should be cleared until after each element described above has been completed satisfactorily.
Some issues that come up during the vetting process can be resolved (i.e., full compliance with
laws relating to current domestic employees), allowing the person to be cleared after such
resolution. The interviewer should continue to work with the candidate on these issues to
verify that the candidate has resolved the problem satisfactorily prior to clearance. Other
issues cannot be resolved (i.e., certain instances of past drug use) and may prevent the
candidate from being cleared for appointment. If there are issues or concerns that make you
question whether a candidate should be cleared, you can call Peter Erichsen at (202) 456-6229
for advice. If you have questions about the public record research or the interview process
itself, you can call Stacy Reynolds at (202) 456-1650 for assistance. If there are any doubts,
we should be consulted.
3
If the candidate is cleared for appointment, you should fax notification of this fact to
Doug Sheorn in the Office of Presidential Personnel, using the enclosed form. His fax number
is (202) 456-6294.
Enclosures
4
PERSONAL DATA STATEMENT QUESTIONNAIRE FOR NON-CAREER SES
APPOINTEES
As part of the clearance procedures for your prospective position, please answer all of
the following questions (please do not respond "not applicable" or "N/A" if your
response is "no" or "none"). In responding to the questions, please supply any
information regarding your spouse or relatives that you deem to be relevant. Your
responses to this questionnaire, which is not subject to public disclosure, are
confidential.
You can type your responses in memorandum form on a separate sheet of paper with
each answer corresponding to the number of the question. You do not need to retype
the questions, but please sign and date the response.
If you have any questions or need assistance in responding to this questionnaire,
please do not hesitate to contact this office. Thank you for your cooperation.
Personal and Family Background
1.
Please list your full name; home address and telephone number; office address
and telephone number; date and place of birth; citizenship; and social security
number.
2.
Please identify your current marital status; spouse's name, citizenship,
occupation, and current employer; and the names and ages of your children.
3.
Do you have any medical conditions that could interfere with your ability to
fulfill your duties? Please explain.
Professional and Educational Background
4.
Please list each high school, college, and graduate school you attended; the
dates of your attendance; and degrees awarded.
5.
Please furnish a copy of your resume and a brief biographical statement.
6.
Please chronologically list activities, other than those listed on your resume,
from which you have derived earned income (e.g., self-employment, consulting
activities, writing, speaking, royalties, and honoraria) since age 21.
7.
Please list each book, article, or publication you have authored, individually
or with others.
8.
Identify each instance in which you have testified before Congress in a non-
governmental capacity and specify the subject matter of each testimony.
9.
Please list all corporations, partnerships, trusts, or other business entities with
which you have ever been affiliated as an officer, director, trustee, partner, or holder
of a significant equity or financial interest (i.e., any ownership interest of more than
5%), or whose decisions you had the ability to influence. Please identify the entity,
your relationship to the entity, and dates of service and/or affiliation.
2
10.
Please provide the names of all corporations, firms, partnerships, trusts, or
other business enterprises, and all non-profit organizations and other institutions with
which you are now, or during the past five years have been, affiliated as an advisor,
attorney or consultant. It is only necessary to provide the names of major clients and
any client matter in which you and your firm are involved that might present a
potential conflict of interest with your proposed assignment. Please include dates of
service.
11.
With regard to each of the entities identified in the preceding question, please
identify your relationship or duty with regard to each. Please include dates of
service.
12.
Other than the entities identified in question number 10 above, please provide
the names of organizations with which you were associated which might present a
potential conflict of interest with your proposed assignment. For each entity you
identified in your response to this question, please provide your relationship or duty
with regard to each. Please include dates of service.
13.
Please describe any contractual or informal arrangement you may have made
with any person or any business enterprise in regard to future employment or
termination payments or financial benefits that will be provided you if you enter
government employment.
14.
If you are a member of any licensed profession or occupation (such as lawyer,
doctor, accountant, insurance or real estate broker, etc.), please specify: the present
status of each license; and whether any such license has ever been withdrawn,
suspended, or revoked, and the reason therefor.
3
15.
Do you have a significant interest in any relationship with the government
through contracts, consulting services, grants, loans or guarantees? If yes, please
provide details.
16.
Does your spouse or any family member or business in which you, your
spouse or any family members have a significant interest have any relationship with
the federal government through contracts, consulting services, grants, loans or
guarantees? If yes, please provide details.
17.
If you have performed any work for and/or received any payments from any
foreign government, business, or individual in the past 10 years, please describe the
circumstances, and identify the source and dates of services and/or payments.
18.
Please list any registration as an agent for a foreign principal, or any
exemption from such registration. Please provide the status of any and all such
registrations and/or exemptions (i.e., whether active and whether personally
registered).
19.
Have you ever registered as a lobbyist or other legislative agent to influence
federal or state legislation or administrative acts? If yes, please supply details
including the status of each registration.
Tax and Financial Information
20.
As of the date of this questionnaire, please list all assets with a fair market
value in excess of $1,000 for you and your spouse and provide a good faith estimate
of value.
4
21.
As of the date of this questionnaire, please list all liabilities in excess of
$10,000 for you and your spouse. Please list the name and address of the creditor,
the amount owed to the nearest thousand dollar, a brief description of the nature of
the obligation, the interest rate (if any), the date on which due, and the present status
(i.e., is the obligation current or past due).
22.
Please describe all real estate held in your name or in your spouse's name
during the last six years. Please include real estate held in combination with others,
held in trust, held by a nominee, or held by or through any other title-holding entity.
Please also include dates held.
23.
Have you and your spouse filed all federal, state and local income tax returns?
24.
Have you or your spouse ever filed a late income tax return without a valid
extension? If so, describe the circumstances and the resolution of the matter.
25.
Have you or your spouse ever paid any tax penalties? If so, describe the
circumstances and the resolution of the matter.
26.
Has a tax lien or other collection procedure ever been instituted against your
or your spouse by federal, state or local authorities? If so, describe the circumstances
and the resolution of the matter.
5
Domestic Help Issue
27.
Do you presently have or have you in the past had domestic help? (i.e., a
housekeeper, babysitter, nanny, or gardener) If yes, please indicate years of service
for each individual and also give a brief description of the services rendered.
Public and Organizational Activities
28.
Please list current and past political party affiliations.
29.
Have you ever run for public office? If yes, does your campaign have any
outstanding campaign debt? If so, are you personally liable? Please also provide
complete information as to amount of debt and creditors.
30.
Please list each membership you have had with any civic, social, charitable,
educational, professional, fraternal, benevolent or religious organization, private club,
or other membership organization (including any tax-exempt organization) during the
past 10 years. Please include dates of membership and any positions you may have
had with the organization.
31.
Have you or your spouse at any time belonged to any membership
organization, including but not limited to those described in the preceding paragraph,
that as a matter of policy or practice denied or restricted affiliation (as a matter of
either policy or practice) based on race, sex, ethnic background, religious or sexual
preference?
6
Legal and Administrative Proceedings and Filings
32.
Please list any lawsuits you have brought as a plaintiff or which were brought
against you as a defendant or third party. Include in this response any contested
divorce proceedings or other domestic relations matters.
33.
Please list and describe any administrative agency proceeding in which you
have been involved as a party.
34.
Please list any bankruptcy proceeding in which you or your spouse have been
involved as a debtor.
35.
Have you or your spouse ever been investigated by any federal, state, military
or local law enforcement agency. If so, please identify each such instance and supply
details, including: date; place; law enforcement agency; and court.
36.
Have you or your spouse ever been arrested for, charged with, or convicted of
violating any federal, state or local law, regulation or ordinance (excluding traffic
offenses for which the fine was less than $100)? If so, please identify each such
instance and supply details, including: date; place; law enforcement agency; and
court.
37.
Have you or your spouse ever been accused of or found guilty of any
violations of government or agency procedure (specifically including security
violations and/or any application, or appeal process)?
7
38.
Please list any complaint ever made against you or by any administrative
agency, professional association or organization, or federal, state or local ethics
agency, committee, or official.
39.
Please list any and all judgments rendered against you including the date,
amount. the name of each case and subject matter of the case, and the date of
satisfaction. Please include obligations of child support and alimony and provide the
status of each judgement and/or obligation.
40.
With regard to each obligation of child support and/or alimony, please state
the following: Have any payments been made late or have there been any lapses in
payment? Have any motions or court actions for modification of child support or
alimony been filed or instituted? Have any actions or motions to compel payment or
initiate collections of late payments and/or past due amounts been filed or threatened?
Have any writs of garnishment been issued? If your response was yes to any of the
above questions, please provide details.
Miscellaneous
41.
Have you ever had any association with any person, group or business venture
that could be used, even unfairly, to impugn or attack your character and
qualifications for a government position?
42.
Do you know anyone or any organization that might take any steps, overtly or
covertly, fairly or unfairly, to criticize your appointment, including any news
organization? If so, please identify and explain the basis for the potential criticism.
8
43.
Please provide any other information, including information about other
members of your family, that could suggest a conflict of interest or be a possible
source of embarrassment to you, your family or the President.
9
(3-25-97)
Date
To:
Federal Bureau of Investigation
Attn: EADSU (Room 4965)
From: (NAME OF AGENCY)
Subject's full name
Other names used (including birth, prior married, and nicknames)
Social Security Number
Date of birth
Place of birth
Permanent address
(also current residence, if different)
Current employer(s)
SUBJECT'S CONSENT: I hereby authorize the FBI to provide namecheck information to the (NAME OF AGENCY).
(Subject's Signature)
(Date)
Request of FBI (Use of this form to request information developed by the FBI or contained in FBI files requires the subject's
consent. Exceptions will only be permitted as authorized by the Attorney General/Deputy Attorney General.)
Name check (EADSU)
The applicant is being considered for:
Senior Executive Service
Schedule C
Remarks/
special instructions:
I certify, subject to 18 U.S.C. § 1001, that the above is sought for official purposes only and I understand that obtaining this
information under false pretenses or any unauthorized disclosure may be a violation of the Privacy Act, 5 U.S.C. § 552a.
Requested by:
Title:
This request has been reviewed and approved by:
THE WHITE HOUSE
wASHINGTON
TAX CHECK WAIVER
I am signing this waiver to permit the Internal Revenue Service
(IRS) to release information about me which would otherwise be
confidential. This information will be used in connection with
my appointment or employment by the United States Government.
This waiver is made pursuant to 26 U.S.C. 6103 (c).
I request that the Internal Revenue Service release the following
information to: President Clinton and the Office of Counsel to
the President, acting on behalf of the President.
1.
Have I failed to file a Federal income tax return for any of
the last three years for which the filing of a return might
have been required? (If the filing date without regard to
extensions and normal processing period for the most recent
year's return has not yet elapsed on the date IRS receives
this waiver, and the IRS records do not indicate a return
for the most recent year, the "last three years" will mean
the three years preceding the year for which returns are
currently being filed and processed.)
2.
Were any of the returns in #1 filed more than 45 days after
the due date for filing (determined with regard to any
extension (s) for time for filing)
3.
Have I failed to pay any tax, penalty or interest liability
during the current or last three calendar years within 45
days of the date on which the IRS gave notice of the amount
due and requested payment?
4.
Am I now or have I ever been under investigation by the IRS
for possible criminal offenses?
5.
Has any civil penalty for fraud been assessed against me
during the current or last three calendar years?
I authorize the IRS to release any additional relevant
information necessary to respond to the questions above.
To help the IRS find my tax records, I am voluntarily giving the
following information:
MY NAME:
MY SSN:
(Please Print or Type)
(2)
CURRENT ADDRESS:
TELEPHONE NUMBERS: (HOME)
(WORK)
(PLEASE INCLUDE AREA CODES)
IF MARRIED AND FILED A JOINT RETURN:
NAME OF SPOUSE:
SPOUSE'S SSN:
NAMES AND ADDRESSES SHOWN ON LAST THREE RETURNS (IF DIFFERENT
FROM ABOVE:)
YEAR
NAME (S)
ADDRESS
If a return for any of the last three years was not filed, please
explain why. If there was insufficient income to meet filing
requirements or filing requirements were met by filing with a
foreign tax agency (e.g., Puerto Rico or the Virgin Islands),
please describe the circumstances.
DATE:
SIGNATURE:
(WAIVER INVALID UNLESS
(SIGNATURE OF TAXPAYER AUTHORIZING
RECEIVED BY THE IRS
THE DISCLOSURE OF RETURN
WITHIN 60 DAYS OF THIS
INFORMATION)
DATE)
THE WHITE HOUSE
WASHINGTON
ACKNOWLEDGMENT AND CONSENT
REGARDING INTENT TO APPOINT
The undersigned acknowledges and agrees to the following:
1.
The undersigned (the "Prospective Appointee"), by his or her signature below,
acknowledges and consents to consideration by the President of the United States for
appointment to a position within the Executive Branch.
2.
The Prospective Appointee agrees that, following completion of a preliminary
investigation into the Prospective Appointee's background using procedures established
by the Office of Counsel to the President, the Prospective Appointee may be identified
publicly as a person the President intends to appoint to a position in the Executive
Branch, and consents to such identification.
3.
The Prospective Appointee further agrees that, notwithstanding such identification: (I)
the Prospective Appointee will not, at such time, have actually been appointed by the
President; (ii) an investigation into the personal and financial background of the
Appointee will continue, including but not limited to completion of an investigation by
the FBI and the Senate if the Prospective Appointee is subject to Senate confirmation;
(iii) the Prospective Appointee will have no vested interest of any kind in the position for
which he or she is considered; (iv) consideration of the Prospective Appointee may be
withdrawn at any time by the President; and (v) upon completion of all investigation into
the Prospective Appointee's background, the Prospective Appointee may be asked, as
part of his or her confirmation or appointment, to divest certain assets, to resign certain
positions, and/or to agree to recuse himself or herself from involvement in matters which
may arise in the conduct of Prospective Appointee's official duties.
The Prospective Appointee, by his or her signature below, agrees to the above and foregoing.
DATED THIS
DAY OF
, 1997.
(signature of Prospective Appointee)
(social security number)
Sample
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR PROSPECTIVE NOMINEES
FROM:
KATHLEEN M. WHALEN know
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Conflicts of Interest and Related Laws
President Clinton is committed to providing the citizens of the
United States with an Administration that maintains the highest
standards of integrity. It is thus important for you to be aware of
the requirements that will apply to you as a full-time Presidential
appointee. Depending on the position in question, more or fewer
requirements may apply than are described here. This is meant only
to provide general guidance. Later in the clearance process, the
Designated Agency Ethics Official (DAEO) at your prospective agency
will provide further clarification and advice. After your
appointment, the DAEO will be your primary point of contact on
ethics' matters.
Financial Conflicts of Interest
A federal criminal conflict of interest law will prevent you, as a
government employee from taking part in Government matters that will
affect your financial interests (18 U.S.C. § 208) In addition to
personal financial interests, the financial interests of your spouse,
minor children, and general partner, and those of any organization
(including a non-profit) in which you are an officer, director,
trustee, general partner, or employee or with which you have an
arrangement for future employment or are negotiating for employment,
are attributed to you.
If you have a conflict, the most practical options will likely be
disqualification, divestiture, or waiver. To handle a potential
conflict through disqualification, you will refrain from
participating in the particular matter in which the conflict exists.
Where disqualification is impracticable, a waiver may be available.
Where that too is not feasible, it may be necessary for you to divest
a holding or resign from a position. Do not divest any holdings or
resign any positions before receiving advice from the agency ethics
official after your confirmation. Regarding each of these options,
the DAEO at the agency to which you are to be appointed will provide
guidance regarding disqualification, divestiture, or waiver.
Board Membership/Officer Positions
Pursuant to White House policy, all full-time Presidential appointees
are required to resign from all for-profit boards and officer
positions. We permit retention of positions on non-profit boards
provided that the DAEO determines that there are no conflicts of
interest.
Financial Disclosure
In addition to the financial disclosure report you must file for the
nomination process, you will be required to file public financial
disclosure reports annually (May 15) and within 30 days after
termination of your position.
Standards of Conduct Regulations
You should receive a copy of the Standards of Ethical Conduct for
Employees of the Executive Branch, 5 C.F.R. Part 2635, from the DAEO
of the agency to which you will be appointed. Generally, the
regulations require that you:
refrain from using or appearing to use your office for private
gain (whether your own or another's) ;
not use any inside information obtained as a result of your
Government service for private gain;
may not, subject to certain exceptions, accept or solicit gifts
or anything of value from persons having business with your
agency or that are given because of your official position; and
avoid situations creating an appearance of a conflict of
interest.
Outside Activities
As a full-time Presidential appointee, you will be prohibited by
Executive Order from earning any outside income. This does not,
however, prohibit you from earning investment income.
In addition to the conflict of interest restrictions outlined above,
including the White House policy regarding board membership, certain
outside activities during Federal service are limited:
You are prohibited from being or acting as an agent of a foreign
principal required to register under the Foreign Agents
Registration Act. See 18 U.S.C. § 219.
You may not solicit or receive pay for representational services
before any agency on behalf of a party other than the United
States (18 U.S.C. § 203) ; or act as agent or attorney (except in
the course of your Government duties) before a federal agency or
court (18 U.S.C. § 205)
These restrictions also prohibit you from accepting a share of fees
from representations made by others with whom you are a partner.
2
Emoluments Clause
The Emoluments Clause of the Constitution prohibits Federal employees
from accepting any gift, office, title or emolument, including salary
or compensation, from any foreign government.
Post-Employment Conflicts of Interest
Depending on your level of pay, certain restrictions will apply when
you terminate government service. Because the restrictions will vary
depending on your pay level, you should consult the DAEO at the
agency to which you will be appointed regarding the prohibitions that
are applicable to you.
Generally, all former federal employees are subject to basic
statutory restrictions which prohibit them from communicating before
a government agency with respect to a "same particular matter
involving specific parties" in which they participated while employed
with the government. Former senior and very senior employees will be
limited for 1 year from making representational contacts before their
former agency with respect to all matters seeking official government
action. Similarly, an executive order enacted by President Clinton
established a pledge that extends the contact limitation for 5 years
after terminating government service. A copy of the post employment
pledge is enclosed in the package of forms you received from our
office. You should make yourself familiar with it.
Restrictions on Political Activity
There are restrictions that govern certain political activities. The
Hatch Act, which has recently been amended, permits federal
employees, particularly Presidential appointees who are Senate-
confirmed, to engage in a wide range of political activities, such as
participation in the management of campaigns or acting as a delegate
to a convention. However, the Hatch Act strictly prohibits certain
partisan political activity, such as: (1) using one's official
position to influence an election; (2) soliciting, accepting, or
receiving a contribution (other than uncompensated volunteer
services) on behalf of a political organization; (3) soliciting,
accepting, or receiving uncompensated volunteer services from
subordinate staff for a political purpose; and (4) using government
resources in conducting political activity. In addition to those
restrictions which apply to yourself, you should be aware also that
federal employees, other than political appointees who are Senate-
confirmed, are prohibited from participating in political activity
during the business day or in a federal building.
Because there may be rules that are particular to the agency to which
you are appointed, please contact the DAEO at your agency before
participating in political activities.
3
DETERMINED TO BE AN
ADMINISTRATIVE MARKING
INITIALS: JAM DATE: 2/13/15
Privileged and Confidential
2006-1066-F
Guidelines for Public Record Research
Public record research is conducted using the Lexis/Nexis on-line research
service on all political Senior Executive Service ("SES") candidates. Depending upon
the sensitivity of the position or the amount of time allowed to complete research, one
should expect to review approximately 100 cites on each candidate.
I.
NEWS;ALLNWS
A.
Name Search
The first database you will use is "news;allnws." All candidate searches begin
with a "name" search. If you are researching Jane Doe, for example, you should
type in Jane pre/2 Doe and Doe. You should use "pre/2" because you want NEXIS
to catch all the Jane's that are one or two words before the word Doe. You should
type "and Doe" so that Nexis picks up references to the name throughout an article,
and not just when the first name appears with it. In a long article about Jane Doe,
for example, she will undoubtedly be referred to as "Doe," or "Ms. Doe," after the
author's initial reference to her.
If you know the middle name or initial of the candidate, you should type in
(Jane or Jane L.) pre/1 Doe and Doe or (Jane or Jane L. or Jane Lane) pre/1 Doe
and Doe. With these searches, you can eliminate all the Jane Doe's with other
middle initials or middle names. If there are too many cites to look through at this
point, you should modify the search by using one of the mechanisms described in the
following sections.
B. Job Search
You should conduct a job search only if your original name search produces
cites on many different people with the same name. This often happens if someone
has a common name.
A job search is conducted by typing in the candidate's name and then adding
key words to your search so that it will only produce articles about your candidate.
For example, you would type Jane pre/2 Doe and Doe and Doe w/30 (assistant
ampaign
secretary or department of defense or DOD or acquisition or Clinton campaign- charat
or professor or military or army or Wesleyan or Illinois Clean Water President of Megn
should
Governor's Task Force). As the above example illustrates, a job search should
include places that the candidate has worked, positions held, schools attended, boards
on which the candidate has served and any other words that would help limit your
Privileged and Confidential
search to just your candidate, but would not lead you to miss crucial articles. This is
a delicate balancing act because you want to find as many articles about the candidate
as possible without pulling up too many other people.
C.
Scandal Search
You should use a scandal search if a job search still produces too many
stories, or if the initial name search produces too many articles, all of which involve
the correct person.
A scandal search should be conducted by typing Jane pre/2 Doe and Doe and
Doe w/30 (illegal! or drug! or convict! or arrest! or indict! or discriminat! or
harass! or clinton* or republican* or investigat! or contov! or scandal! or illicit!
or critic! or blam! or embarrass! or improp! or complain! or dispute! or
corrupt!). If you are conducting a job search and a scandal search concurrently, you
should type Jane pre/2 Doe and Doe and Doe w/30 [jobs] and Doe w/30 [scandal]
because a search should always include the last name by itself, and each of the
"w/30" modifiers should be connected to a separate entry of the last name.
If the full scandal search brings up too many articles, certain words can be
eliminated. In eliminating words, the researcher should use his or her judgment to
determine what words are likely to bring up a lot of articles containing no potential
issues. However, if at all possible, retain the base scandal search terms: (illegal! or
drug! or convict! or arrest! or indict! or discriminat! or harass!). If you still have
too many articles, it might be advisable to discuss the search with someone else.
D.
Other Limiting Searches
If the job search and scandal search still produce too many articles, there are a
few other searches that can be used to limit the search and produce a manageable
number of stories.
1.
And Not Searches
The first additional limiting search is the "and not" search. This search can be
used when there is someone with the same name as the candidate who has some
identifying characteristic. For example, if there is a Jane Doe who is a Vice
Always
Conduct
President of Mega Corp. and the candidate has never been connected to Mega Corp., earch
then you can type: Jane pre/2 Doe and Doe and not (mega corp!). A common
"and not" search to be used for candidates who often appear before Congress is: and
2
Privileged and Confidential
not (fns or reuter!). This modification is intended to primarily eliminate instances
when the candidate is named in a list of people to testify before Congress in the
daybooks published by FNS (Federal News Service) and Reuter. However, Reuter is
a wire service and should only be eliminated if there seem to be an excessive number
of Daybook entries.
It is important to remember to ALWAYS put the "and not" search last because
it will negate anything that comes after it, even in a subsequent search level.
2.
Atleast2 Searches
Another search that can be used if none of the above searches seems to help is
the "atleast2" search, which can be conducted by typing: Jane pre/2 Doe and Doe
and atleast2 (Doe). This search requires that the candidate's last name appear at
least two times in the article before retrieving it. The atleast search is a good search
to use when a person's name has been equated with a particular issue or product (i.e.
the "Zoe Baird issue") and is mentioned often in articles that are not relevant to the
candidate. The number can be can be changed from 2 to a higher number, but should
not go above 5 without consulting someone else.
3.
Headline/Lead Searches
A headline/lead search will produce only stories in which your candidate is
mentioned in the headline, or lead sentence, of an article. You write such a search by
typing Jane pre/2 Doe and Doe and Hlead (Doe). You should only use this as a last
resort, as it severely limits the number of stories your search will produce.
E.
Special Notes
It is very important to remember three things:
1. Always have one entry of a candidate's last name by itself, one connected
to the candidate's first name and one for each modification.
2. Always put the "and not" search last.
3. Always conduct a byline search when you do a jobs, scandal or other
additional search.
3
Privileged and Confidential
II.
Byline Searches
Whenever you limit a search by using a job, scandal or other additional
search, you should couple that with a byline search, produced by typing Jane pre/2
Doe and Doe and Byline (Doe). This ensures that you will catch all of the articles
or letters written by Ms. Doe. All articles by the candidate should be printed out in
full unless there is an excessive amount.
III.
GENFED;MEGA
The second database you will use is "genfed;mega." All candidate searches
begin with a basic "name" search. (See above, I.A.) If there are too many cites to
look through at this point, you should modify the search by using name ((Jane or
Jane L. or Jane Lane) pre/1 Doe) and Doe. This search will retrieve all cases in
which Jane Doe is a named party.
4
SAMPLE LEXIS/NEXIS SEARCHES ON JOHN JAY DOE
Library: nexis;allnws
I.
NAME SEARCH: (john or john j or john jay or johnny or johnny j or johnny jay or jack or
jack j or jack jay or j jay or j j or jay) pre/1 doe and doe
**Note: We try to use every possible nickname and combination of names. Always include
the last name alone so that it is highlighted throughout the article. If you do not have a middle
name, use pre/2 instead of pre/1.
If the Name Search retrieves more than about 150 articles, type ".m1" to modify and narrow it by
adding the following searches to the end of the name search:
AND NOT: and not (daybook)
**Note: Always put this last. Other terms can be added inside the parenthesis if they
definitely apply to the wrong person. For example, use: and not (daybook or football) if many
of the stories name a football player who is not our candidate. Be careful not to be too broad.
JOBS SEARCH: and doe w/30 (new job or current job or old job or old job or school)
**Note: Jobs should be listed broadly enough to retrieve all references to candidate but
narrowly enough to avoid too many other people being pulled in. Use both the position and
place of employment separately.
SCANDAL SEARCH:
and doe w/30 (illegal! or drug! or convict! or arrest! or indict! or
discriminat! or harass! or clinton! or republican! or investigat! or
controv! or scandal! or illicit! or critic! or blam! or embarrass! or
improp! or complain! or dispute! or corrupt!)
**Note: If the Scandal Search and the Job Search combined do not get you below 200 stories,
eliminate words from the Scandal Search. If at all possible, retain the words that, in the
example above, appear before clinton. If you still have too many articles, discuss the search
with someone else.
II.
BYLINE SEARCH:
(john or john j or john jay or johnny or johnny j or johnny jay or
jack or jack j or jack jay or j jay or j j or jay) pre/1 doe and doe and
byline (doe)
**Note: If you do a Jobs Search or a Scandal Search, you must do a separate Byline Search.
Library: genfed;mega
III.
GENFED SEARCH:
name ((john or john j or john jay or johnny or johnny j or johnny
jay or jack or jack j or jack jay or j jay or j j or jay) pre/1 doe) and
doe
**Note: This search is intended to find any cases in which the candidate is a named party and will not
retrieve cases where he or she was a witness or an attorney. The search may only be narrowed by
using the candidate's birth date: and date aft (00/00/1900)
INTERVIEW OF PROPOSED SENIOR EXECUTIVE SERVICE APPOINTEE
Name:
Telephone:
Position:
SSN:
Date of Interview:
Interviewing Attorney:
RECOMMENDATION:
NOTES AND COMMENTS:
1.
Do you have any medical problems that might interfere with your ability to fulfill your
duties?
2.
Have you ever experienced problems on or off the job because of any emotional or mental
condition that could interfere with your ability to fulfill your responsibilities to the
Administration?
3.
Any treatment or counseling by a psychologist, psychiatrist or similar professional?
a. Symptoms?
b. Diagnosis/prognosis?
c. Medication?
4.
a.
Have you ever had any problems with alcohol or any incidents of public
drunkenness?
b.
Any DWI/DUI or similar traffic charges involving alcohol or drugs?
2
5.
a.
Since age 18, have you used any illegal substances, including marijuana?
b.
Have you ever sold or purchased any illegal substances? Manufactured?
6.
a.
Have you ever been charged with or convicted of a felony offense?
b.
Misdemeanors (including reckless driving, etc)?
c.
Have you ever been arrested at all (including juvenile offenses)?
7.
Are there currently any charges pending against you for any criminal offense?
8.
To the best of your knowledge, are you currently the subject of any criminal, civil, or
administrative investigation?
9.
Have you ever been investigated regarding, or cited for, a security violation?
3
10.
a.
Have you ever been a defendant in a lawsuit, either in your personal or
professional capacity?
b.
Party to an arbitration proceeding?
c.
Have you ever been the subject of, or otherwise involved in, any EEO complaint?
11.
Have you ever had any problems with employees or co-workers, including any
allegations of discrimination (either racial, gender, religious, age or disability) or sexual
harassment?
12.
To your knowledge, have there ever been allegations that you engaged in domestic
violence (i.e., spousal or child abuse)?
13.
Have you ever been disciplined or cited for, or been the subject of a complaint regarding
a breach of ethics or unprofessional conduct?
4
14.
Have you filed and paid all federal, state and local taxes when due?
a. Do you ever file for valid extensions?
b. Have you ever filed beyond the extended date?
C. Have you ever paid any penalties?
If so, what was the reason?
d. Have you ever been the subject of an audit by the Internal Revenue Service or a
state or local agency responsible for tax collection?
e. Are there any tax problems or issues that the White House should be made
aware of (relating to income property, real estate or any other taxes)?
15.
a.
Do you currently have outstanding debts that exceed your assets?
5
b.
Do you currently have excessive balances on any of your credit cards (if yes, how
much and why) ?
c.
Are you current with all credit or loan payments?
d.
Any student loan problems (defaults, payments lapses, judgements, etc.)?
e.
Any incidents of bankruptcy in your personal or professional background?
f.
Are there any problems in your credit history (credit cards revoked, credit denied,
etc.) ?
16.
Have you had a chance to review the information we provided to you regarding Executive
Branch ethics policies?
Are you fully comfortable with the requirements of the ethics policy?
6
17.
At this time, a full review of your financial disclosure form has not yet occurred. Is there
anything that you own or have an interest in, or from which you receive income, that you
would not be willing to divest as a condition of employment with the Federal
Government?
18.
Are you a member of any boards of directors? Are there any from which you would be
unwilling to resign?
19.
Is there any possibility that any of your current or prior work or your past or present
clients could create a conflict of interest, relative to your new position with the Federal
Government?
20.
Do you currently have any foreign clients or business associates that could create a
potential or perceived conflict or interest?
21.
Are you now or have you ever been a registered agent for any foreign country,
government, political party or organization?
22.
a.
Are you married?
b.
Is your spouse a U.S. citizen?
7
c.
Have you ever been divorced?
d.
Are there any potentially embarrassing issues related to the divorce?
23.
a.
Have you ever had, or do you currently have, anyone providing personal services
in your household (i.e., housekeeper, child care provider, lawn care provider) on
either a full-time or part-time basis?
b.
What type of employees?
c.
Do you comply with the following:
Immigration laws (post-1986 bar on hiring individuals who do not have
authorization to work in the U.S.)?
I-9 Form?
FICA Requirements?
All other applicable laws (Federal Unemployment Tax Requirements, Worker's
Compensation, Fair Labor Standards Act, and State and local tax and employment
laws)?
8
24.
Do you vote regularly?
25.
Have you written any articles, columns, books, etc which contain positions or opinions
that might be perceived to be inconsistent with those of the Clinton Administration?
26.
Are you a member of any clubs or organizations? Do any of them discriminate in policy
or practice? Do they have any minority or female members?
27.
Have you ever been a candidate for public office?
a. As such, did you ever receive controversial or allegedly illegal contributions?
b. Do you have a campaign fund deficit?
Surplus?
c. Have you ever been the target of a significant amount of independent campaign
expenditure?
28.
Have you ever helped raise funds or received contributions on behalf of a political
candidate? If yes, were there any problems or complaints regarding your fundraising or
the sources or circumstances of contributions?
9
29.
Have you ever been the subject of any adverse media attention?
30.
Is there anything in your personal, professional or political background that you think
might be used by others to either compromise or embarrass the President or yourself?
31.
Are there any individuals or organizations that you believe might oppose your
appointment?
32.
Is there anything that I have not specifically asked that you think we should know before
you are appointed by the President?
Additional Notes and Comments:
Innured
10
Household Employer's
Publication 926
92
Cat. No. 64286 A
Tax Guide
(Rev. July 1995)
Department
of the
Treasury
Here are the tax rules you
Babysitter
Maid
Internal
should know when you
Caretaker
Nanny
Revenue
employ a household worker
Health aide
Private Nurse
Service
such as a:
Housekeeper
Yard Worker
IdEm
household
sehold wark
by
Da
Contents
worker is your employee, it does not matter whether the
work is full time or part time, or that you hired the worker
Who Is a Household Employee?
through an agency or from a list provided by an agency
2
or association.
Can Your Employee Legally Work In the United
If only the worker can control how the work is done,
States?
the worker is not your employee but is self-employed. A
2
self-employed worker usually provides his or her own
tools and offers services to the general public in an inde-
Do You Need To Pay Employment Taxes?
2
pendent business. If an agency provides the worker and
Social Security and Medicare Taxes
3
controls what work is done and how it is done, the
Federal Unemployment (FUTA) Tax
5
worker is not your employee.
More information about who is an employee is in Pub-
Do You Need To Withhold Federal Income
Tax?
lication 937, Employment Taxes.
5
Example 1. You pay Betty Shore to babysit your child
What Do You Need To Know About the Earned
and do light housework 4 days a week in your home.
Income Credit?
6
Betty follows specific instructions you give her regarding
household and child care duties. You provide the house-
How Do You Make Tax Payments?
6
hold equipment and supplies that Betty needs to do her
work. Betty is your household employee.
What Forms Must You File?
7
Example 2. You pay John Peters to care for your
lawn. John also offers lawn care services to other home-
What Records Must You Keep?
8
owners in your neighborhood He provides his own toois
and supplies, and he hires and pays any helpers he
Where Can You Get More Information?
8
needs. Neither John nor his helpers are your household
employees.
Appendix: State Unemployment Tax
Agencies
10
Employee Social Security and Medicare Tax
Can Your Employee Legally
Withholding Table
12
Work in the United States?
It is unlawful for you to knowingly hire or continue to em-
Introduction
ploy an alien who cannot legally work in the United
States. When you hire a household employee to work for
If you have a household employee, you may need to pay
you on a regular basis, he or she must complete the em-
state and federal employment taxes. This publication will
ployee part of the Immigration and Naturalization Ser-
help you decide whether you have a household em-
vice (INS) Form I-9, Employment Eligibility Verification.
ployee and, if you do, whether you need to pay federal
You must verify that the employee is either a U.S. citizen
employment taxes. It explains how to figure, pay, and re-
or an alien who can legally work and then complete the
port social security tax, Medicare tax, federal unemploy-
employer part of the form.
ment tax, and federal income tax withholding for your
Two copies of Form I-9 are contained in the INS
household employee.
Handbook for Employers. Call the INS at 1-800-755-
This publication also tells you where to find out
0777 to order the handbook or additional copies of the
whether you need to pay state unemployment tax for
form, or to get more information.
your household employee.
spouse
you
pay
to
Who Is a the Wages
wages
Do You Need To Pay
income
not
Employment Taxes?
take
The information in this publication applies to you only if
and
you pay someone to perform ibimation household work and that
If you have a household employee, you may need to
worker is your employee Household work includes work
withhold and pay social security and Medicare taxes, orFor
performed in or aroundlydut.home by babysitters, spous nan-
you may need to pay federal unemployment tax, or you
nies, health aides, private nurses, maids, caretakers,
may need to do both. To find out, read Table 1, Do You
yard workers, and similar domestic workers.
Need To Pay Employment Taxes? on page 3.
A household worker is your employee if you can con-
You do not need to withhold federal income tax from
trol not only what work is done, but how it is done. If the
your household employee's wages. But if your employee
Page 2
Table 1. Do You Need To Pay Employment Taxes?
If you:
Then you need to:
A-Pay cash wages of $1,000 or more in 1995 to any
Withhold and pay social security and Medicare taxes.
household employee.
(Page 3)
But do not count wages you pay to-
The taxes are 15.3% of cash wages.
Your spouse,
Your employee's share is 7.65%.
Your child under age 21,
(You can choose to pay it yourself
Your parent, or
See
and not withhold it.)
Any employee
}
page 4
Your share is a matching 7.65%.
under age 18
for
during 1995.
exceptions
B-Pay total cash wages of $1,000 or more in any
Pay federal unemployment tax. (Page 5)
calendar quarter of 1994 or 1995 to household employees.
The tax is usually 0.8% of cash wages.
But do not count wages you pay to-
Wages over $7,000 a year per
Your spouse,
employee are not taxed.
Your child under age 21, or
You may also owe state
Your parent.
unemployment tax.
Note: If neither A nor B above applies, you do not need to pay any federal employment taxes. But you may still need to
pay state employment taxes.
asks you to withhold it, you can choose to do so. See Do
Social Security and Medicare Taxes
You Need To Withhold Federal Income Tax? on page 5.
If you need to pay social security, Medicare, or federal
Social security and Medicare taxes pay for benefits that
workers and their families receive under the Federal In-
unemployment tax or choose to withhold federal income
tax, read Table 2, Household Employer's Checklist, on
surance Contributions Act (FICA). Social security tax
page 4 for an overview of things you may need to do.
pays for benefits under the old-age, survivors, and disa-
If you do not need to pay social security, Medicare, or
bility insurance part of FICA. Medicare tax pays for bene-
fits under the hospital insurance part.
federal unemployment tax and do not choose to with-
hold federal income tax, the rest of this publication does
Both you and your household employee may owe so-
not apply to you. But you still may have to collect or pay
cial security and Medicare taxes. The taxes for each of
state taxes for your household employee.
you are 7.65% (6.2% for social security tax and 1.45%
for Medicare tax) of the employee's social security and
State employment taxes. You should contact your
Medicare wages.
state unemployment tax agency to find out whether you
You are responsible for payment of your employee's
need to pay state unemployment tax for your household
share of the taxes as well as your own. You can either
employee. For the address and phone number, see the
withhold your employee's share from the employee's
list beginning on page 10 of this publication. You should
wages or pay it from your own funds. Pay the taxes as
also find out whether you need to pay or collect other
discussed under How Do You Make Tax Payments? on
state employment taxes, or carry workers' compensa-
page 6. Also, see What Forms Must You File? on page 7.
tion insurance.
Social security and Medicare wages. You figure so-
Taking the child and dependent care credit for em-
cial security and Medicare taxes on the social security
ployment taxes. If your household employee cares for
and Medicare wages you pay. If you pay your household
employee cash wages of $1,000 or more in 1995, all
your dependent who is under age 13 or yourspouse or
tax
you
pay
to
that
employee
in
1995
dependent
who
is
not
capable
of
self
care."sb
(regard-
the
wages
were
earned)
are
social
can
work
you
may
be
able
to
take
income
security
an
+
$1
of up to 30% of your expenses. If you can take the credit when you not wages, counted. Do not count wages you pay to
you can include your share of the federal and state em-
ployment taxes you pay, as well as the employee's
any of the following individuals as social security and
wages, in your qualifying expenses. For information
Medicare wages:
about the credit, get Publication 503, Child and Depen
1) Your spouse.
plactholding the
dent Care Expenses.
to
2)
Your child who is under age 21.
Page 3
Table 2. Household Employer's Checklist
You may need to do the following things when you have a household employee.
Page numbers are given to help you find the related discussion in this publication.
When you hire a
Find out if the person can legally work in the United States. (Page 2)
household employee:
Find out if you need to pay state taxes. (Page 3)
When you pay your
Withhold social security and Medicare taxes. (Page 3)
household employee:
Withhold federal income tax. (Page 5)
Make advance payments of the earned income credit. (Page 6)
Decide how you will make tax payments. (Page 6)
Keep records. (Page 8)
By January 31, 1996:
Get an employer identification number. (Page 7)
Give your employee Copies B,C, and 2 of Form W-2, Wage and Tax Statement. (Page 7)
By February 29, 1996:
Send Copy A of Form W-2 to the Social Security Administration. (Page 7)
By April 15, 1996:
File Schedule H (Form 1040), Household Employment Taxes. (Page 8)
Where to file: Attach Schedule H to your income tax return. See your tax booklet for the address.
3) Your parent. Exception: Count these wages if both
Withholding the employee's share. You should with-
of the following apply:
hold the employee's share of social security and Medi-
a) Your child lives with you and is either under age
care taxes if you expect to pay your household em-
18 or has a physical or mental condition that re-
ployee social security and Medicare wages of $1,000 or
quires the personal care of an adult for at least 4
more in 1995. Even if you are not sure you will pay that
continuous weeks in a calendar quarter, and
much, you may still withhold the taxes. However, if you
prefer to pay the employee's share yourself, see Not
b) You are divorced and have not remarried, or you
withholding the employee's share, next.
are a widow or widower, or you are married to
Withhold 7.65% (6.2% for social security tax and
and living with a person whose physical or
1.45% for Medicare tax) from each payment of social
mental condition prevents him or her from caring
security and Medicare wages. You can use the table on
for your child for at least 4 continuous weeks in a
page 12 to figure the proper amount to withhold. Instead
calendar quarter.
of paying this amount to your employee, you will pay it to
4) An employee who is under age 18 at any time dur-
the IRS with a matching amount for your share of the
ing the year. Exception: Count these wages if pro-
taxes. Pay the taxes as discussed under How Do You
viding household services is the employee's princi-
Make Tax Payments? on page 6.
pal occupation. If the employee is a student,
If you make an error by withholding too little, you
providing household services is not considered to
should withhold additional taxes from a later payment. If
be his or her principal occupation.
you withhold too much, you should repay the employee.
Example. You hire a household employee (who is an
Also, if your employee's social security and Medicare
unrelated individual over age 18) to care for your child
wages reach $61,200 in 1995, do not count any wages
and agree to pay cash wages of $100 every Friday. You
you pay that employee during the rest of the year as so-
expect to pay your employee $1,000 or more for the
cial security wages to figure social security tax. (But con-
year. From each $100 wage payment you should with-
tinue to count the employee's cash wages as Medicare
hold $6.20 mich ($100 X 6.2%) for your employee's share of
wages to figure Medicare tax.)
social security tax and 131 451$100 X 1,45%) for your
tax
Cash wages. Cash wages include wages you pay
share of Medicare tax You will match the
with checks. money orders, etc: Cash wages do not in-
65 ($6.20 + $1.45) on SEV you wages withhold you with pay $7.65 from your
clude the value of food, lodging, clothing, and other non-
wages own any funds when YOU taxes You pay your em-
cash items you give your household employee. How-
ployee the remaining $92.35 ($100 - $7.65) every
ever, cash you give your employee in place of these
at
oppliame for
dar
quarter
of
items is included in cash wages.
ded
your
home
If you reimburse the amount your employee pays to
Netpsithholding the employee's share. If you prefer
commute to your home by public transit (bus, train, etc.),
to pay your employee's social security and Medicare
do not count the reimbursement (up to $60 per month)
taxes from your own funds, you do not have to withhold
as wages.
them from your employee's wages. The social security
Page 4
and Medicare taxes you pay to cover your employee's
Wages not counted. To decide whether you are
share must be included in the employee's wages for in-
paying FUTA wages, do not count wages you pay to any
come tax purposes. However, they are not counted as
of the following individuals:
nom
social security and Medicare wages or as federal unem-
ployment (FUTA) wages.
1) Your spouse.
Example. You hire a household employee (who is an
2) Your child who is under age 21.
unrelated individual over age 18) to care for your child
3) Your parent.
and agree to pay cash wages of $100 every Friday. You
expect to pay your employee $1,000 or more for the
Example. You hire a household employee (who is
year. You decide to pay your employee's share of social
not related to you) on January 1, 1995, and agree to pay
security and Medicare taxes from your own funds. For
cash wages of $200 every Friday. During January, Feb-
each $100 wage payment you will pay $15.30 when you
ruary, and March you pay the employee cash wages of
pay the taxes. This is $7.65 ($6.20 for social security tax
$2,600. Because you pay cash wages of $1,000 or more
plus $1.45 for Medicare tax) to cover your employee's
in a calendar quarter of 1995, the first $7,000 of cash
share plus a matching $7.65 for your share. You pay
wages you pay the employee (or any other employee) in
your employee $100 every Friday without withholding
1995 or 1996 is FUTA wages. The FUTA wages you pay
any social security or Medicare taxes.
are also subject to your state's unemployment tax.
During 1995, you pay your household employee cash
Federal Unemployment (FUTA) Tax
wages of $10,400. You pay all your state unemployment
tax by April 15, 1996. Your FUTA tax for 1995 is $56
The federal unemployment tax is part of the federal and
($7,000 X 0.8%).
state program under the Federal Unemployment Tax Act
(FUTA) that pays unemployment compensation to work-
ers who lose their jobs. Like most employers, you may
owe both the federal unemployment tax (the FUTA tax)
and a state unemployment tax. Or, you may owe only the
Do You Need To Withhold
FUTA tax or only the state unemployment tax. To find
Federal Income Tax?
out whether you will owe state unemployment tax, con-
tact your state's unemployment tax agency. See the list
You are not required to withhold federal income tax from
of state unemployment agencies in the Appendix on
wages you pay a household employee. However, if your
page 10 for the address.
household employee asks you to withhold federal in-
The FUTA tax is 6.2% of your employee's FUTA
come tax and you agree, you must withhold federal in-
wages. But it is reduced to 0.8% for 1995 if the FUTA
come tax from the employee's wages. The employee
wages you pay are not more than the wages that are
must give you a completed Form W-4, Employee's With-
subject to state unemployment tax, and you pay all state
holding Allowance Certificate.
unemployment tax you owe for 1995 by April 15, 1996.
If you agree to withhold federal income tax, you are
Do not withhold the FUTA tax from your employee's
responsible for paying it to the IRS. Pay the tax as dis-
wages. You must pay it from your own funds. Pay the tax
cussed under How Do You Make Tax Payments? on
as discussed under How Do You Make Tax Payments?
page 6. Also, see What Forms Must You File? on page 7.
on page 6. Also, see What Forms Must You File? on
Use the income tax withholding tables in Publication
page 7.
15, Circular E, Employer's Tax Guide, to find out how
much to withhold. Figure federal income tax withholding
FUTA wages. You figure the FUTA tax on the FUTA
on wages before you deduct any amounts for other with-
wages you pay. If you pay cash wages to household em-
held taxes. Withhold federal income tax from each pay-
ployees totaling $1,000 or more in any calendar quarter
ment of wages based on the filing status and exemp-
of 1995, the first $7,000 of cash wages you pay to each
tions shown on your employee's Form W-4. Publication
household employee in 1995 and 1996 is FUTA wages.
15 contains detailed instructions.
(A calendar quarter is January through March, April
through June, July through September, or October
Wages. You figure federal income tax withholding on
Massager your employee's cash wages
both cash and noncasiev pay Measure wages
by Veach 67 docluring the year. do not figure the FUTA tax
you pay in any form than cash by theyalue althod emgla
on anywages you pay that employee during the rest of
noncash item.
abouthe 51€ only if you agree to
the following For a discussion of "cash wages," see page 4.
Do not count as wages any the following items:s WP
your
If you Pay less than $1,000 cash wages in any calen-
Meals provided at your home for your convenience.
dar quarter of 1995, but you had a household employee
oninage Mia but the income tax with
for
your 1994; the cash wages you pay in 1995 may still be
Lodging provided et your home for your convenien
FUTA wages. They are FUTA wages if the cash wages
and as a condition of employment.
to
tokeyou paid to household employees in any calendar quar-
Up to $60 a month for bus of train tokens (passes) you
after of 1994 totaled $1,000 or more.
give your employee, or for any cash reimbursement
Page 5
you make for the amount your employee pays to com-
1) A substitute Form W-2 with the same EIC Informa-
mute to your home by public transit.
tion on the back of the employee's copy that is on
Up to $160 a month for the value of parking you pro-
Copy C of the IRS Form W-2,
vide your employee at or near your home or at or near
2) Notice 797, Possible Federal Tax Refund Due to
a location from which your employee commutes to
the Earned Income Credit (EIC), or
your home.
3) Your own written statement with the same wording
as Notice 797.
See Publication 15 for more information on cash and
noncash wages.
If you must file Form W-2 for your employee, you
Paying tax without withholding. Any income tax you
must give your notice about the 1995 EIC to the em-
pay for your employee without withholding it from the
ployee by January 31, 1996, or if later, within one week
employee's wages must be included in the employee's
of the date you give the employee a substitute Form W-
wages for federal income tax purposes. It is also
2 that does not have the EIC statement. If Form W-2 is
counted as social security and Medicare wages and as
not required, you must give your notice to the employee
federal unemployment (FUTA) wages.
by February 7, 1996.
What Do You Need To Know
How Do You Make
About the Earned Income
Tax Payments?
Credit?
When you file your 1995 federal income tax return, you
will add the federal employment taxes on the wages you
Certain workers can take the earned income credit (EIC)
pay to your household employee in 1995, less any ad-
on their federal income tax return. This credit reduces
vance earned income credit payments you make to the
their tax or allows them to receive a payment from the
employee, to your income tax. (For information about re-
IRS if they do not owe tax. You may have to make ad-
porting the employment taxes on your return, see
vance payments of part of your household employee's
Schedule H on page 8.) The amount you owe with your
EIC along with the employee's wages. You also may
return is due to the IRS by April 15, 1996.
have to give your employee a notice about the EIC.
For different payment rules that may apply if your
home is on a farm or you also have employees who work
Advance EIC payments. You must make advance EIC
in your business, see Payment rules for business em-
payments if your employee gives you a properly com-
ployers, later in this discussion.
pleted Form W-5, Earned Income Credit Advance Pay-
You can avoid owing tax with your return if you pay
ment Certificate. Any advance EIC payments you make
enough federal income tax before you file to cover the
reduce the amount of social security and Medicare taxes
employment taxes for your household employee, as well
and withheld federal income tax you need to pay to the
as your income tax. If you are employed, you can ask
IRS. Use the advance EIC payment tables in Publication
your employer to withhold more federal income tax from
15, Circular E. Employer's Tax Guide, to find out how
your wages in 1995. If you get a pension or annuity, you
much to pay your employee. But do not pay more than
can ask for more federal income tax withholding from
the amount of social security and Medicare taxes and
your benefits. Or, you can make estimated tax payments
withheld federal income tax you would otherwise need
for 1995 to the IRS, or increase your payments if you al-
to pay to the IRS.
ready make them.
You may have to pay an estimated tax penalty if you
Notice about the EIC. The employee's copy (Copy C)
do not have enough federal income tax withheld or pay
of the IRS 1995 Form W-2, Wage and Tax Statement,
enough estimated tax. But for 1995, 1996, and 1997, the
has a statement about the EIC on the back. If you give
penalty does not apply to employment taxes for your
your employee that copy by January 31, 1996 (as dis-
household employee. Beginning with the taxes for 1998,
cussed under Form page 7), you do not have to
the penalty can apply.
taxes thr 900th @ any Mofice about the EIC. Oth-
For information about paying taxes through federal m-
hated erwise must give your household employee anotice
come tax withholding and estimated tax payments and
Ity, get 506 only if you agree to withhold federal in-
figuring the estimated tax penalty, get Publication 505,
Tax
come tax from the employee's wages (as discussed
Tax Withholding and Estimated Tax.
under Do You Need To Withhold Federal Income Tax?
but the income tax withholding tables show
Asking for more federal Income tax withholding. If
that tax should be withheld. Even if not required, you
you are employed and want more federal income tax
are encouraged to give the employee a notice about the
withheld from your wages to cover the employment
EJC if his orher 1995 wages are less than $26,673.
taxes for your household employee, give your employer
Your notice about the EIC can be any of the following:
a new Form W-4, Employee's Withholding Allowance
Page 6
Certificate. Complete it as before, but show the addi-
tional amount you want withheld from each paycheck on
What Forms Must You File?
line 6.
If you get a pension or annuity and want more federal
You must file certain forms to report your household em-
income tax withheld to cover the employment taxes for
ployee's wages and the federal employment taxes for
your household employee, give the payer a new Form
the employee if you:
W-4P, Withholding Certificate for Pension or Annuity
Payments (or a similar form provided by the payer).
1) Pay social security and Medicare wages,
Complete it as before, but show the additional amount
2) Pay FUTA wages, or
you want withheld from each benefit payment on line 3.
To make sure you will have the right amount withheld,
3) Withhold federal income tax.
get Publication 919, Is My Withholding Correct for 1995?
It will help you compare your total withholding for 1995
The employment tax forms and instructions you need
with the combined income tax and employment taxes
will be sent to you automatically in January 1996 if you
that you can expect to figure on your 1995 return.
reported employment taxes for 1994 on Form 942, Em-
ployer's Quarterly Tax Return for Household
Paying estimated tax. If you want to make estimated
Employees.
tax payments to cover the employment taxes for your
household employee, get Form 1040-ES, Estimated
Employer Identification number (EIN). You must in-
Tax for Individuals. Use its payment vouchers to make
clude your employer identification number (EIN) on the
your payments. You can pay all of the employment taxes
forms you file for your household employee. An EIN is a
at once, or you can pay them in installments. If you have
9-digit number issued by the IRS. It is not the same as a
already made estimated tax payments for 1995, you can
social security number. You ordinarily will have an EIN if
increase your remaining payments to cover the employ-
you previously paid taxes for employees, either as a
ment taxes. Estimated tax payments for 1995 are ordi-
household employer or in a business you own as a sole
narily due April 17, June 15, and September 15, 1995,
proprietor. If you already have an EIN, use that number.
and January 16, 1996.
If you do not have an EIN, get Form SS-4, Application
for Employer Identification Number. The instructions for
Payment rules for business employers. If you own a
Form SS-4 explain how you can apply for an EIN either
business other than a farm as a sole proprietor and pay
by mail or by telephone. If you apply by telephone (not a
federal employment taxes for business employees, you
toll-free call), an EIN will be assigned for your use imme-
can choose either of two ways to pay the 1995 federal
diately, but you must still send your completed Form SS-
employment taxes for your household employee. You
4 to the IRS. If you apply by mail, you will receive your
can pay the taxes with your federal income tax as de-
EIN in the mail in approximately 4 weeks.
scribed above, or you can pay them with your deposits or
other payments of the taxes for your business
employees.
Form W-2. File a separate 1995 Form W-2, Wage and
If your home is on a farm, you must pay the 1995 em-
Tax Statement, for each household employee to whom
ployment taxes for your household employee under the
you pay:
rules for depositing and paying employment taxes for
1) Social security and Medicare wages, or
farmworkers. For information on those rules, get Publi-
cation 51, Circular A, Agricultural Employer's Tax Guide.
2) Wages from which you withhold federal income tax.
Include the taxes for your household employee with your
deposits or payments of the taxes for other farmworkers.
You must complete Form W-2 and give Copies B, C, and
If you pay the employment taxes for your household
2 to your employee by January 31, 1996. You must send
employee with business employment taxes, you must re-
Copy A of Form W-2 to the Social Security Administra-
port them with those taxes on Form 941 and Form 940
tion by February 29, 1996.
(or 940-EZ). If your household employee is a
Employee who leaves during the year. If an em-
farmworker, you must report the employment taxes and
ployee stops working for you before the end of 1995, you
those for any other farmworkers on Form 943 and Form
may file Form W-2 and provide copies to your employee
940 (or 940-EZ). See Business employment tax returns
immediately after you make your final payment of
on page
tax question Mondawages. You do not need to wait until 1996. If the em-
hours. Check ployee asks you for Form W-2, give it to him or her within
number
or you CBI 30 days after the request or the last wage payment,
whichever is later.
Telephone hei
have access
Form W-3. If you must file Form W-2 for more than one
820
household employee, use Form W-3, Transmittal of
Wage and Tax Statements, to send the Forms W-2 to
the Social Security Administration.
Page 7
Schedule H. Use Schedule H (Form 1040), Household
4) Any federal income tax you withhold,
Employment Taxes, to report the federal employment
taxes for your household employee if you:
5) Any advance EIC payments you make, and
1) Pay social security and Medicare wages,
6) Any state employment taxes you withhold.
2) Pay FUTA wages, or
Employee's social security number. You must keep a
3) Withhold federal income tax.
record of your employee's name and social security
number exactly as they appear on his or her social se-
File Schedule H with your 1995 Form 1040 or 1040A by
curity card if you pay the employee:
April 15, 1996. If you get an extension to file your Form
1040 or 1040A, the extension will also apply to your
1) Social security and Medicare wages, or
Schedule H.
2) Wages from which you withhold federal income tax.
Business employment tax returns. Do not use Sched-
ule H (Form 1040) if you pay the employment taxes for
You must ask for your employee's social security num-
your household employee with business employment
ber no later than the first day on which you pay the
taxes. (For information on choosing to pay the taxes that
wages. You may wish to ask for it when you hire your
way, see Payment rules for business employers, on
employee.
page 7.) Instead, each calendar quarter, include the so-
An employee who does not have a social security
cial security, Medicare, and withheld federal income
number must apply for one on Form SS-5, Application
taxes for the employee for the quarter on the Form 941,
for a Social Security Card. An employee who has lost his
Employer's Quarterly Federal Tax Return, you file for
or her social security card or whose name is not cor-
your business. Include the FUTA tax for the employee on
rectly shown on the card should apply for a new card.
your Form 940 (or 940-EZ), Employer's Annual Federal
Employees may get Form SS-5 from any Social Security
Unemployment (FUTA) Tax Return.
Administration office or by calling 1-800-772-1213.
Also, do not use Schedule H if your household em-
ployee is a farmworker. Instead, report the social secur-
How long to keep records. Keep your employment tax
ity, Medicare, and withheld federal income taxes for the
records for at least 4 years after the due date of the re-
employee and any other farmworker on Form 943, Em-
turn on which you report the taxes or the date the taxes
ployer's Annual Tax Return for Agricultural Employees.
were paid, whichever is later.
Report the FUTA tax for the employee and any other
farmworker on Form 940 (or 940-EZ).
If you report the employment taxes for your house-
hold employee on Form 941 or Form 943, file Form W-2
Where Can You Get
for the employee with the Forms W-2 and Form W-3 for
your business employees.
More Information?
You can use the following phone numbers to order IRS
publications and forms or ask tax questions.
What Records Must You Keep?
Ordering publications and forms. To order free publi-
Keep your copies of the employment tax forms you file
cations and forms, call 1-800-TAX-FORM (1-800-829-
and related Forms W-2, W-3, W-4, and W-5. You must
3676). You can also write to the IRS Forms Distribution
also keep records to support the information you enter
Center nearest you. Check your income tax package for
on the forms you file. If you are required to file Form W-
the address.
2, you will need to keep a record of your employee's
name, address, and social security number.
M.Askipg tax questions. You can call the IRS with your
Box
Wage and tax records. On each payday should re-
tax question Monday through Friday during regular busi-
cord the date and amounts of:
Avenue
nes hours. Check 980F telephone book for the local
number or you can call-800-829-1040.
1) Your employee's cash and noncash wages,
2) Any employee social security tax you withhold or
MisTelephone help for hearing-Impaired persons. If you
agree to pay for your employee,
have access to TDD equipment, you can call 1-800-
Box
829-4059 with your tax questions or to order forms and
3) Any employee Medicare tax you withhold or agree
publications. See your income tax package for the hours
to pay for your employee,
of operation.
Page 8
Appendix: State Unemployment Tax Agencies
The following list of state unemploy-
Newark, DE 19714
Kentucky
ment agencies was provided to the IRS
(302) 368-6635
by the U.S. Department of Labor. If the
Division of Unemployment
District of Columbia
telephone number listed for your state
Insurance
would be a long distance call from your
Department of Employment
CHR Building
area, you can use the name of the
Services
PO Box 948
agency to look for a local number in your
500 C Street, NW
Frankfort, KY 40602
telephone book.
Washington, DC 20001
(502) 564-6838
Alabama
(202) 724-7462
Louisiana
Department of Industrial Relations
Florida
Office of Employment Security
649 Monroe Street
Department of Labor and Employ-
PO Box 44186
Montgomery, AL 36131
ment Security
Baton Rouge, LA 70804
(205) 242-8371
102 Caldwell Building
(504) 342-2992
Alaska
Tallahassee, FL 32399
Maine
(904) 921-3100
Employment Security Division
PO Box 25509
Georgia
Maine Department of Labor
20 Union Street
Juneau, AK 99802-5509
Department of Labor
PO Box 309
(907) 465-2757
148 International Blvd.
Augusta, ME 04332-0309
Artzona
Atlanta, GA 30303
(207) 287-1239
(404) 656-6225
Department of Economic Security
Maryland
Hawaii
Phoenix, AZ 85005
Office of Unemployment Insurance
(602) 255-4755
Department of Labor and Industrial
1100 North Eutaw Street
Relations
Arkansas
Baltimore, MD 21201
800 Punchbowl Street
(410) 333-5782
Employment Security Division
Honolulu, HI 96813
PO Box 2981
(808) 586-8927
Massachusetts
Little Rock, AR 72203
Idaho
Department of Employment and
(501) 682-3253
Training
Department of Employment
California
19 Staniford Street
317 Main Street
Boston, MA 02114
Employment Development Depart-
Boise, ID 83735
(617) 727-5054
ment, MIC-90
(208) 334-6240
PO Box 942880
Illinois
Michigan
Sacramento, CA 94280-0001
Bureau of Employment Security
Employment Security Division
(916) 653-1528
401 South State Street
7310 Woodward Avenue
Colorado
Chicago, IL 60604
Detroit, MI 48202
Department of Labor and
(312) 793-1916
(313) 876-5131
Employment
Indiana
Minnesota
1515 Arapahoe, Tower 3, Suite 200
Division of Employment Security
Department of Economic Security
Denver, CO 80202
10 North Senate Avenue
390 North Robert Street
(303) 839-4959
Indianapolis, IN 06204
St. Paul, MN 55101
Connecticut
(317) 232-7682
(612) 296-3736
lowa
ruman
Employment Security Division
Mississippi
PO Box 7942
GE-
Employment Secur
Labor Department
Security
Department of Job Serviceson Wi 53702
Employment(Security Commission
200 Folley Brook Blvd.
781
1000 East Grand 266-3177
227817
Wethersfield, CT 06109
Des Moines, IA 50319
deckson-3MS:3825-2781
(203) 566-2128
(515) 281-8200
(601) 961-7755
Delaware
North Dakota
Kansas
Employmer
Missouri
Department of Labor
Department of
Division Lev. Service of Employment Security
Division of Unemployment
401 Topeka Avenue Casper. WY
Box 59
Insurance
Topeka, KS 66603
1307)
235-G
Jefferson City, MO 65104
PO Box 9149
(913) 296-5026
(314) 751-3328
Page 10
Montana
Ohio
Texas
Unemployment Insurance Division
Bureau of Employment Services
Employment Commission
PO Box 1728
145 South Front Street
Tax Section
Helena, MT 59604
PO Box 923
TEC Building
(406) 444-3686
Columbus, OH 43216
Austin, TX 78778
Nebraska
(614) 466-2578
(512) 463-2712
Division of Employment
Oklahoma
Utah
Box 94600
Employment Security Commission
Department of Employment
State House Station
Will Rogers Memorial Office
Security
Lincoln, NE 68509
Building
140 East 300 South
(402) 471-9839
Oklahoma City, OK 73105
PO Box 45288
Nevada
(405) 557-7135
Salt Lake City, UT 84145
(801) 536-7755
Employment Security Department
Oregon
500 East Third Street
Vermont
Carson City, NV 89713
Employment Department
(702) 687-4599
875 Union Street, NE
Department of Employment
Salem, OR 97311
Security
New Hampshire
(503) 378-3257
PO Box 488
Montpelier, VT 05602
Department of Employment
Pennsylvania
(802) 828-4242
Security
32 South Main Street
Department of Labor and Industry
Virginia
Concord, NH 03301
Labor and Industry Building
(603) 224-3311 (ext. 270)
7th and Forster Street
Employment Commission
Harrisburg, PA 17121
PO Box 1358
New Jersey
(717) 787-2097
Richmond, VA 23211
Division of Employment Security
(804) 786-1256
Revenue
Rhode Island
Washington
Labor Building, CN 947
Trenton, NJ 08625-0947
Department of Employment and
Training
Employment Security Department
(609) 292-2810
PO Box 9046
101 Friendship Street
New Mexico
Providence, RI 02903
Olympia, WA 98507-9046
(401) 277-3688
(206) 753-3822
Employment Security Department
PO Box 2281
South Carolina
West Virginia
Albuquerque, NM 87103
Department of Employment
(505) 841-8568
Employment Security Commission
Security
PO Box 995
New York
Columbia, SC 29202
State Office Building
112 California Avenue
(803) 737-3070
State Department of Labor
Charleston, WV 25305-0112
State Campus, Building 12
South Dakota
(304) 558-1324
Albany, NY 12240
(518) 457-4120
Department of Employment
Wisconsin
Security
North Carolina
Department of Industry, Labor, and
ations
PO Box 4730
Human Relations
GEF 1 Employment Security Commission
Aberdeen, SD 57401
PO Box 7942- GEF 1
53702 PO Box 26504
(605) 626-2312
Madison, WI 53702
177
Raleigh, NC 27611
Tennessee
(608) 266-3177
(919) 733-7395
North Dakota
Department of Employment
Wyoming
Resou
Security
Employment Resources Division
Job Service of North Dakota
500 James Robertson Parkway
PO Box 2760
82
PO Box 5507
8th Floor, Volunteer Plaza Building
Casper, WY 82602
20
Bismarck, ND 58502
Nashville, TN 37245-3500
(307) 235-3201
(701) 328-2814
(615) 741-2346
Page 11
EMPLOYEE SOCIAL SECURITY (6.2%) AND MEDICARE (1.45%) TAX WITHHOLDING TABLE
(See Circular E for Income tax withholding tables.)
Note: Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. For example, on
a wage payment of $180, the employee social security tax is $11.16 ($6.20 tax on $100 plus $4.96 on $80 wages). The employee
Medicare tax is $2.61 ($1.45 tax on $100 plus $1.16 on $80 wages).
If wage
The social
The Medicare
n wage
The social
The Medicare
If wage
The social
The Medicare
tax to be
payment
security tax to
tax to be
payment
security tax to
tax to be
payment
security tax to
is:
be withheld is:
withheld is:
is:
be withheld Is:
withheld is:
is:
be withheld is:
withheld is:
$ 1.00
$ .06
$ .01
$38.00
$2.23
$ .52
$71.00
$4.40
$1.03
1.04
2.00
.12
.03
37.00
2.29
.54
72.00
4.46
3.00
.19
.04
38.00
2.36
55
73.00
4.53
1.08
4.00
25
.06
39.00
2.42
57
74.00
4.59
1.07
6.00
.31
.07
40.00
2.48
.58
76.00
4.65
1.09
.09
41.00
2.54
59
76.00
4.71
1.10
8.00
.37
7.00
43
.10
42.00
2.60
61
77.00
4.77
1.12
8.00
.50
.12
43.00
2.67
.62
78.00
4.84
1.13
9.00
.56
.13
44.00
2.73
.64
79.00
4.90
1.15
.15
45.00
2.79
.65
80.00
4.96
1.16
10.00
.62
.67
81.00
5.02
1.17
11.00
.68
.16
46.00
2.85
12.00
.74
.17
47.00
2.91
.68
82.00
5.08
1.19
.81
.19
46.00
2.98
.70
83.00
5.15
1.20
13.00
14.00
.87
.20
49.00
3.04
.71
84.00
5.21
1.22
.93
22
50.00
3.10
.73
85.00
5.27
1.23
15.00
1.25
16.00
.99
23
61.00
3.16
.74
88.00
5.33
17.00
.25
52.00
3.22
.75
$7.00
5.39
1.26
1.05
18.00
1.12
.26
53.00
3.29
.77
88.00
5.46
1.28
19.00
.28
54.00
3.35
.78
89.00
5.52
1.29
1.18
.29
55.00
3.41
.80
90.00
5.58
1.31
20.00
1.24
1.30
.30
56.00
3.47
.81
91.00
5.64
1.32
21.00
.32
57.00
3.53
.83
92.00
5.70
1.33
22.00
1.36
23.00
1.43
.33
58.00
3.60
84
93.00
5.77
1.35
.35
59.00
3.66
.86
94.00
5.83
1.38
24.00
1.49
.87
95.00
5.89
1.38
25.00
1.55
.36
60.00
3.72
26.00
1.61
.38
61.00
3.78
.88
96.00
5.95
1.39
1.67
.39
62.00
3.84
.90
97.00
6.01
1.41
27.00
28.00
1.74
63.00
3.91
91
96.00
6.08
1.42
.41
1.80
.42
64.00
3.97
.93
99.00
6.14
1.44
29.00
1.45
30.00
1.86
.44
65.00
4.03
.94
100.00
6.20
31.00
1.92
.45
66.00
4.09
.96
32.00
1.98
.46
67.00
4.15
.97
33.00
2.05
.48
68.00
4.22
.99
34.00
2.11
.49
69.00
4.28
1.00
35.00
2.17
.51
70.00
4.34
1.02
*U.S. Government Printing Office: 1995 - 387-124/34181
Page 12
07/25/93
14:32
002
SIDLEY & AUSTIN
CHICAGO
One First National Plaza
Chicago, Winois 60603
THE NEW "NANNY TAX"
(312) 853-7000
Los ANCELES
The failure of two of President Clinton's appointees to win confirmation because
553 West Fifth Street
of their non-compliance with laws governing the employment of domestic workers was first
Los Angeles, California 90013
paga naws. The Nation became more aware of the broad scope of these laws and the
(213) 896-6000
complexity of complying with them. In turn, Congress studied these laws and eventually
acted to simplify and streamline the requirements for complying with them. In general,
Congress did out lessen the scope of application of these laws, but Instead. made is more
NEW YORK
difficult to ignore the obligation to comply with them.
875 Third Avenue
New York. New York 10022
On October 22, 1994, the Social Security Domestic Employment Reform Act of
(212) 906-2000
1994 ("SSDRA"), otherwise known as the "Nanny Tax," was signed into law by President
Clinton.' The new law governs the paying and filing of taxes regarding household
employees and is in part retroactive to January 1. 1994. This memorandum summarizes
WASHINGTON
the SSDRA and the new reporting requirements that It imposes.
1722 Eye Street. N.W.
Washington, D.C. 20006
(202) 736-8000
Summary of the New Nanny Tax
The SSDRA regulates the payment of various employment taxes with respect to
TOKYO
domestic employees, Including the:employer's share of Social Security, Medicare, federal
9-1, Yurakucho 1-cheme
and state unemployment taxes, and income tax withholding, as well as the employee's
Chiyoda-ku, Tokyo 100 Japan
81-3-3218-5900
share of Social Security, Medicare, and income tax withholding. It applies 9 all
employers of household employees, which include housekeepers. babysimers, maids,
nannies, yardworkers, cooks, nurses, gardeners, etc. Note that the categories of
LONDON
babysitters and nannles are not limited to caretakers of children; thus, companions and
Royal Exchange
nurses hired for elderly or disabled persons would be included in the regulated categories.
London ECJV 3LE
44-71-360-3600
An individual who pays $1,000 or more within one year to a household employee
will Incur TAB the SSDRA. Under the former law, the threshold was much
lower: $50 within three, months. The new law also streamlines the filing requirements;
SINGAPORE
instead of the six to 18 forms (Tederal and state) needed to comply under the old law, the
36 Robinson Road. #18-01
new law provides for s new section added to Form 1040 (individual income tax return).
Singapore 0106
which potentially reducing single form filled annually.
48-45-224-5000
$600
to
to
Andually On 1040
Wage Reported
blovment taxes then he
required
to
pay
domestic
blovment
taxes
then
Medicate
Medicare. federal
a one tabed ider
applicable
Social
Modicare
Security
oblig
own
Individual
feder
Income
tax
Yearn,
Rid
Federal
ast list the amount of
make the appropriate
annual
tax
payments.
The
expayer
must
In
the
mount
of
biterbis or Be? pwn
Thousehold Apyee (The employee or Federal
increase Fe: Eldebalding
00943 because
Income Tex Withholding
enroshold and 18 year
UI 5740 %
the
Payment of State
Illinois
Opthobi:
We Case
of
State
Broom
003
07/26/95
14:33
FROM: SIDLEV & RUSTIN
PMX: 312-053-7036
18:32
PAGE: us
SIDLEY & AUSTIN
April 1995
logal obligation to report this wast income on
However, because the SSDRA does not address
annual income tax returns; but the
state Income txx withholding, such withholding
employer/mxpsyer is not responsible for an
will continue to be paid as in the past, according
employee's failure w file's the readen or failure
to the respective state's regulations. For
a pay taxes.) The may
example, in Milnois, if state income tax is 9 be
qualify for the credits allowed for child and
withheld, the employer must register wid the
dependent ésso, expenses as reported: on Form
Illinois Department of Rovenue by filling our
2441 (to be sttached to the employer/Rexpayer's
Form NUC-1; the amount withheld is paid
individual income tax return). Beginning in
quarterly initially, and annually thereafter If
1998, the federal government also will require
sufficiently small.
estimated payments or additional withholding for
SSDRA taxes.
Federal unemployment taxes will now be
paid annually with the employer/uxpayer's
The rules that generally apply so
federal income tax return (Form 1040), instead
employees regarding withholding for Income us
of separately on Form 940.° The SSDRA
purposes do not apply to domestic employees.
contemplates that state unemployment taxes also
For withholding purposes, household services
may be paid annually on Form 1040, but
are. excepted from wages, and therafore
procedures for doing so have not yet been
employer/axpayers are not required to withhold
developed. Therefore; it'may be necessary to
extimated Income tax for waged paid, w
comply separately with the omployer/uxpayer's
household employees.3
Nevertholess,
respective state laws. For example, Minois
withholding and payment of employees income
residents should continue to file Blinois Form
taxes k permitted If bath the employer and
UI-3/40 quartorly at least through 1995.
employee voluntarily agree. Beginning In 1995,
If such as agreement is reached, federal Income
A summary of the changed application
tax withholding also should be reported and paid
and filing requirements imposed by the SSDRA
on Form 1040, rather than on Form 942." If the
is found In the chart below.
employer and employee choose a whhhold for
federal income tax purposes, state Income texes
generally must also be withheld.
Summary Chart of Domestic Employer Taxes
its.filing requir
than
PRIOR-LAW
SSDRA
Filing Threshold
$50 Per CRAIMER domestic
$1000 iPer
of
pplicable
the SSI
$600
Wase Reported
week or
one
year
SurdSubse
Subsei
Payment OFFICA Medicate
Questarly babysitter
name be inv
don
estic
Reporting Federal
minatury On Sundarly, his
or
employe
Unemployment T-Hart
bab
time triggets no
Rishty Regulation $
will
be
Under
Reporting Fadomic
bosinon
to
have
bainda
Income Tex have
issue because
sustained on it
Payment of State
Quartity DE UI year 3/40 18
and
IN
DE
Clim
Anstally Oa. 1040 (Probably)
ably)
Tax
Illinois
Reporting & Payment of State
Optional; If Reported, Than
No Change
Income Tax Withholding
Quarterly in Ofingis
1006
07/28/95 14:34
2004
SIDLEY & AUSTIN
April 1995
The Enforcement Mechanism
analysis
by
reasonable and wall-infriemed analysis by a
&
person knowledgeable in the tax law would load
The linchpla of the new Nanny Tax
such a person to conclude that the position has
legislation is that k creates a mechanism that
a one in three, or greater, likelihood of being
will enforce these laws that have been widuly
sustained on its merits (realistic possibility
ignored in the past. An employer/taxpayer must
standard). Thus, in order to avoid liability, $
pay domestic employment taxes on his or her
preparer must be able w conclude that its
personal return if he or she employs sameone to
classification = an independent contractor would
work in his or her private home and pays that
be sustained at least one-third of the time. The
person at least $1,000 annually. The
punalty for taking an unreallatic position is $250.
employer/taxpayer must report such employment
unless it is shown that there is reasonable cause
on his or her income tax return in much the
for the understatement and such person acted in
same way as one would report his or her annual
good faith
earnings: Failure to report such employment
constitutes filing of 1 false federal income tax
Subsection (b) would apply. for
return; raising the prospect of liability for
example, where 2 preparer knew that the
penalties. Hance, enforcement now is thrust
taxpayer employed domestic workers and paid
upon the individual taxpayer.
them at least $1,000 annually, yet deliberately
omitted reporting this on the taxpayer's return in
This enforcement machanism has been
order to lower the taxes due. Under Treasury
further enhanced by imposing penalties on tax
Regulation $1.6694.3(b), "A preparer is
return preparers. Because the SSDRA provides
considered to have willfully attempted to
that domestic employment taxes will be reported
understate liability if the preparer disregards, in
on personal income tax returns beginning in
liubilit
an attempt wrongfully to reduce the tzt llubility
1995 (due April 15, 1996), the SSDRA will
of the taxpayer, information furnished by-the
have an effect on preparers of those returns.
taxpayer or other persons." Therefore
2
The spectre of potential liabilities creates
preparer becomes aware of potential Nanny Tax
additional responsibilities for income tax
liabilities, he or she must include them on the
preparers.
income tax return. The penalty for willfully
understating tax liability is $1,000.
Section 6694 of the Internal Revenue
Code imposes penalties DD income tax return
preparers for certain understatements of liability
What Constitutes
on a return or a claim for a refund. Subsection
Domestic Employment for Tax Purposes
(a) of Section 6694 imposes a penalty for an
understatement of liability due to a position
The key issue in determining whether a
taken by the preparer for which there was no
taxpayer must comply with the SSDRA is
realistic possibility of its being sustained on its
determining whether the taxpayer has hired an
les.
The
SSDR
merits. Subsection (b) of Section 6694 imposes
employee for SSDRA purposes. The SSDRA
ementsy loyed penalty for an understatement of liability due
excludes from its filing requirements loynes
000
animally
to a willful attempt to understate tax liability or
who (i) will earn less than $1,000 annually of
a reckless or intentional disregard of rules and
(ii) are under the age of 18 and whose principal
regulations." Both of these subsections may bu,
occupation" is note
indictiduals
unplicable
in
of
the
SSDRA.
United
States,
labe
payings
$600
to
individuals
involve
doc
works
one
week
responsibility to
bubylitters
one
works
one
45
year
be involved where
Securday
misl
who
paying
one,babysitter.
domestic worker Complete
Form
There
are
many
Naminy
Tax.
Similarly,
A
decidlag
what
endent
employee
is
1
close
part
time
triggets:
or
Under
Regulation
$1.6694
employer
these
exceptions
be
studied
be
to
have
a
because
desevelous
the
sustained
on
its
threshold
and
18-year
agailimis
Actors
to
in determing as ividuat an
in determinion Subscher as
Design
Moreover the
THE New D
accord
of
and
Service asy
u
employees
Careful
of
07/25/95
14:34
1005
FROM: SIDLEV & MUSTIN
FAX: 312-033-7836
Jul-26-95 Ned 10:54
page, 05
SIDLEY & AUSTIN
April 1993
for many individuals. Persons who require
penalties, as well as liabilities for accrued
constant nursing help or other professional
Interest on unpaid employment taxes, may be
services will not be able to avail themselves of
levied If reclassification should occur.
these explicit exemptions.
There Is 2 remaining option, while TIDE
Exsential Steps for Compliance
expressly a part of the SSDRA. that may offer
some relief: hire - Independent contractor/ An
If an Individual decides that he or she is
independent contractor. is not W "employee"
an employer of domestic help. he or she will
and If the domestic worker b: not an
aced to comply with the state and federal
"employes," one doesn't owe any tax on that
regulations associated with employers of
person. Independent contractors are responsible
domestic services. These basic requirements are
for thair own as reporting and payment
summarized below, in the general order in
obligations. In general. a person is an
which they need to be completed.
Independent contractor if be or the is self-
employed, makes his or her own Hours: uses his
.
Obtain 1 Federal Employer's
or her own equipment, and secks work from
identification Number ("FEIN") This
many sources not solely or even principally
number is assigned by the Internal
from one person: By contrast, an employee
Revenue Service and can he obtained by
works principally for one person, uses the
completing Form SS-4 and recurning k
person's materials, and follows that person's
to the Internal Revenue Service:
rules concorning how and when B work.
Obtain 2 State Employer's Identification
This option may be particularly attractive
Number. This number is assigned by
for individuals who do not require personal
each state, and can be obtained by
assistance: For example, hiring E cleaning
contacting the respective siate's
service to do housekesping would likely fall into
Department of Revenue.
the category of independent contractor, whereas
hiring a Live-in maid would Caff Into the varagory
Complete the Immigration and
of employee, with Hule difference is the services
Naturalization Service's Form 1-9,
actually Turnished to the individual.
"Employment Eligibility Verification" at
the time UII employee is hired.
be
to
The -difficulty, however, lies in
Moreover; Form I-9 must be completed? according to th
- classifying domestic help as. employees or
even If the employer pays loss attoris, in fil
Independent contractors. The example above
$1,000 per year to ab employee. This: thhol
is
was fairly dr. most signations will not be so
form is designed w ensure that the
definiting Theakey problem area for most
employee legally may accept work in if the
a
supportally smalls individuals like will involve ein that
United States, and to is the write
this report
is
regular
but
only
works
one
Share
responsibility to complete this report
less
cleie
Form -
Spenday
Share
Complete Form-W-2
Employee
are
Complete
Form
W-4,
Withholding
Certificate
shouldly,
the
is
Allowance
32
whether or include
Share
Form Hust be filled one BANK ID include the Form
W-2
played -
$hare
not the stiployer and
yes withholding for the Envenue
agreed (10)Daye the employer withholder for me
File Form Servickidi
to
ymen
File Form Wedtten ransmitta
and
Tax
Twice
B
S
5
and Tax Statement, with
and keep a
employee." Moreover, the Insernal Revenue
B
Design 1 payroll register and keep,
Service may reclassify Independent contractors
record of each employer's gross
employ Careful scrutiny of ack situation
earnings and the amount of Social
- rherefore warenued = potentially large
Security, Medicare; and with ing
07/26/95
14:35
2006
FROM: SIDLEY & AUSTIN
FAX: 312-853-7836
Jul-26-95 Wed 10:55
PHUE: ¥6
SIDLEY & AUSTIN
April 1995
taxes collected. Such records must be
Calculation of Domestic Employment Taxes
kept currently and maintained for at
least four years.
Employers may withhold 6.2% of each
employee's wages as Social Security tax and
Calculate Social Security and Medicare
1.45% of each employee's wages as Medicare
withholding and withhold the proper
tax (7.65%); employers must pay 8 6.2% share
amounts for each payroll period.
and 1.45% share themselves (7.65%). If
employers do not withhold Social Security and
Calculate Federal and State withholding,
Medicare taxes from each employee, the
if both the employer and employee have
employer must pay the full tax (15.3% in all) on
agreed to withholding for Income taxes,
an annual. basis. Any part of the employee's
and withhold the proper amounts for
share of Social Security and Medicare that the
each payroll period. In Illinois, if state
employer pays is then considered additional
income tax is to be withbeld, the
income to the employee for LEX purposes: The
employer must register with the Illinois
employer alone must pay. an additional 6.2% of
Department of Revenue by filling out
each employee's wages in federal unemployment
Form NUC-1.
taxes through 1998. State unemployment tax
varies; in Illinois, for example, first-time
Until an agreement is reached by the
employers must pay 3.7% of each employee's
respective state in allow the reporting
wages in 1995. However, state unemployment
and payment of state unemployment
taxes up to & maximum of 5.4% of wages may
taxes on the eroployer/taxpayer's
be taken 29 a credit against federal
individual income tax return (Form
unemployment taxes. The employer may also
1040), continue to file state
withhold income tax from an employee's wages
unemployment forms as required by
if they both agree. The Internal Revenue
each state: for example, in Illinois,
Service has produced tables to aid in these
Form UI-3/40 must be filed quarterly.
calculations based upon the number of
dependents declared by an employee as well as
Report hpay Social Security,
the payroll period."
Medicare, federal unemployment and
federal withholding annually on Form
An example may be helpful. Let's
1040.
assume that an Illinois resident hires & domestic
employee who earns $100 per week, or 1 total
Report and pay any state income tax
of $5,200 annually. Assuming that no income
withholding according he to the respective
tax withholding is involved, the
state's a regulations; in Illinois, state
employer/taxpayer will need to pay a total of
income tax withholding is reported and
$1,118 in taxes in 1995. This amount is
paid quarterly initially, and then
comprised of:
annuallynes If the amount fs B
as
of
domenticted
sufficient
awaraness of domestic employmen
Reg
$1.00
Sogial Security
from
the
Internal
the EXPAIOR scruting expected from
40
Employer's Share
events
Revenue
Armed
with
Complete
nov
32240
rormow-2,
Wage
and
Tax
Employee's Share
CLEAR
responsibility
about mett responsibilities is empt
Statement, anitially, the employee Willonal
Medicare
employer/taxpayer: may NW
&
need to Inche Form W-2 whhehis-org Day Employer's Share
estable a now arrangement
Dir
15.40
A
her
1994): Share
A writion secord explain
130:00 relationship the reasons for the
alternative Tm Unemployment
No.
130:00m relationship and the rd
"192 should be down File For Transmittal of Service. State://eamployment
change should be documented
card
may
emoloyer
and
with
the
Employees
DU
record may emoliorate penalties $
Mar Type
Security Admitistration.
TOTAL
$ 1,112.00
18:97 assessed for the brior your
07/26/95
14:36
007
FROM: SIDLEY 5 RUSTIN
FAX: 312-853-7836
Jul-26-45 Wed 10:55
FHUE. 6.7
SIDLEY & AUSTIN
April 1905
Final Notes
Many individuals have complied fully
with the domestic employment laws, but those
Because of the new law, future
Individuals who have not complied in the past or
compliance is expected to increase dramatically.
who have questions about the SSDRA may wish
Howover, for those for whom 1995 with be the
to consult with their own TXX advisor or a Sidley
first year that domestic employment is reported,
& Austin externey about the best approach to
the question arises whether compliance in 1995
their particular simerion. In zome cases, related
raises issues with respect to prior years'
issues may also be important, such as XP
compliance, or lack thereof. There is'no. clear
employee's own legal and tax status. More
answer, as reporting for 1995 will be done
detailed materials concerning the SSDRA and
through a revised Form 1040, which has not ytz
the classification of independent contractic status
been published. While there is no Indication
are also available from the Sidley & Austin
that the Internal Revenue Service will Investigate
estate planning group.
pust years compliance with respect to doinestic
employment, there isno guarantes that past non-
sumpliance will be ignored. Purthermore,
Kathe A. Pats
Congress politedly decided not to grand arrinesty
for prior years" failure to observe domestic
employment Lews. Despite this uncertainty, the
SSDRA nometheless imposes obligations that
1. gales 108 She 4071 (1994).
cannot be ignored easily. Therefore, compliance
0
2
I.R.C. I 340/(e) (1594).
b appropriate even if in employertaxpayer
faces the risk of exposure of prior years" non-
2.
Under the prior Law, - explayerhapper
compliance. For someone who will be reporting
needed w file Form 943 quarterly for domantic
is Illinois for the first time in 1995, the first tax-
help. The 1994 Form 942 sus as Farm 942
related return and payment (the Illinois
will not be published in 1995.
uneximployment tar)' is due on April 30, 1995.
d.
Valike Form 202, Form 940 will continue a be
published for 1994. as if & and livelsed solety -
A second issue also may arise for first-
household employees Despite this construed
time domastic employment taxpayers: If an
publication, Form 940 should not & and after
employer/taxpayer ats not pay LIKES previously
1994 w report unemployment now for domestic
because be or she believed that his or her
hdp.
domestic halp was an independent correactor,
IRC 1 seri(t) (1990)
but now believes that such halp is at employee,
what is the best way to present this
6
LRC. $ 6693(k) (1994)
reclassification? This Issue may be very
common, given the public's heightened
Treas. Reg. I 1.6694.20) (1994).
swareness
of
dome
employment
141 (1994).
the greater ted from the
Revenue
with new know
8941, 1987-1°C
about thair
is employers
employer/taxpayers wast to consider
Internal Revenue Service, Circular £
Rd Publication No. is
Beader No. "
establishing Daw arrangument
mar Service
1994): bareet Revenue Service,
employees Awritie record explaining
Tex Mythods and Tables.
and Tables
employment relations and the reasons
or
1994): Internal
Pubticarion No. 495 (Dre. 1994): Internal
change should be
Service, Environment Taxas &
Taxas for
record may amaliarate.penaltics that
its Politication No. 926
carlos No. 926
later assessed for the prior years Incorrect
1994).
classification.
686
07/26/95 14:35
1008
FROM: SIDLEY & AUSTIM
FAX: 312-053-7036
Jul-26-95 Wed 18157
PAGE: "
SIDLEY & AUSTIN
Apni 1975
PERSONAL AND
Sidley & Austin has 18 Lawyers whose pracsice focuses ON the Legal needs of Individual
ESTATE PI ANNING
clients,and their estate planning maiters. Sidley & Austin's personal and juners
lawyers offer a wide range of expertise in federal and state laws relating so assate planning.
SERVICES CROUP
I
musting charliable organizations, foundations, estate and sex !ligation, powers of
gererney guardianship, resirement plans, marital agreements, Life insurance planning and
estate and sin rex.
2 any of For further information. please call one of our Jawyers in any of our offices:
Elizabeth E Har: $ Susan T. Eart
Elizabeth E Harris
Ralok E Lerner Larry D. Berning
Ralph L Larner
875 Third Avenue Frank L. Bixby
875 Third Avenue
James:1 Carroll
New York. New York 10022
James W. Hitzeman
Telephone: (212) 906-2000
Loren E. Juhl
Jordan A. Klein
John M. McDonough
Philip M. Battaglis
Kaths A. Pate
555 W. Finh Street
KaradM. Schellin
Los Angeles, California 90013
James R. SUNEHART
Telephone: (213) 896-6000
Paul A. Svoboda
Thomas E. Swaney
Lyman W. Welch
John C. Williams
One First National Plaza
Chicago, Illinois 60603
Telephone: (312) 853-7000
a
Bland
pay
need to pay liste
de both
idi
one
October 2, 1996
MEMORANDUM TO STACY REYNOLDS
FROM:
CATHERINE WHITING
SUBJECT:
Responsibilities of Hosts of Au Pairs for Payment
of Taxes and Verification of Employment
Eligibility
You have asked whether host families of au pairs are
responsible either for employment taxes, or for verifying
employment eligibility. If the au pair is in the United States
under a J-1 visa as authorized by the Exchange Visitor Program
(22 C.F.R. § 514), then the host family has no tax liability for
the au pair. The host family is also not required to verify
employment eligibility, as that is the statutory responsibility
of the sponsor agency.
Under 26 C.F.R. § 31.3121 (b) (19) -1, services provided by an
au pair are not subject to FICA or FUTA tax "if the services are
performed to carry out a purpose for which the individual was
admitted." Id. Thus, as long as the au pair provides the
services described in 22 C.F.R. $ 514.31, FICA and FUTA taxes are
not applicable. Those services consist of "providing limited
child care services." 22 C.F.R. $ 514.31 (a)
With regard to income tax, the host family is not liable for
withholding taxes for two alternative reasons. First, au pairs
are not required to pay income tax. 26 C.F.R § 1.6851-2
(Certificates of compliance with income tax laws by departing
aliens) specifies that holders of J-1 visas are not required to
show compliance with income tax laws on income such as
educational expenses, the value of room and board, or income such
as a stipend. 26 C.F.R. § 1.6851-2 (ii) (A). Since a J-1 au pair
is not required to pay income tax, it is unlikely that a host
page
family would be subject to withholding taxes for the au pair.
Alternatively, even if an au pair were subject to federal
income tax, the host family is not subject to mandatory
withholding requirements. The stipend paid to the au pair is not
C.F.R. § considered "wages" under 26 U.S.C.S. S 3401. Under 26 "wages"
$31.3402 (p)=1 and 26 U.S.C.S 3402 (p) remuneration not (p) and
considered "wages" is subject to voluntary, rather than mandatory "wages"
between withholding Without a voluntary withholding agreement between.ng Withol
have no the au pair and the host family, the host family would have noair and
withholding obligations.
Withholding obligat
employment
The host family also has no obligation to verify employmentost family
eligibility. The host family's responsibilities include obility. The
providing private accommodations, facilitating the educational
component of the program, payment of a cash stipend, and
providing reasonable time off on a weekly, monthly and yearly
basis. There are no requirements to ensure that the au pair is
in the United States legally.
Verification of employment eligibility is the responsibility
of the sponsor agency. Under 22 C.F.R. § 514.9 - 12, the sponsor
agency must verify the eligibility of the individual to be in the
exchange visitor program. The sponsor agency is also responsible
for reporting violations, such as extending the stay or
withdrawal from the program. 22 C.F.R. S 514.13(c).
femily
considered
wages
S.C.S.
§
3401.
Under
26 C F.R.
in
consid
$31 34021 and 26.0.S.C.S. 3402(p) remuneration not
$31.34
the
considered "wages' is subject to voluntary, rather than mandator consid
withholding Without a voluntary withholding agreement between withho
the au pair and the
bost
uld
have
no
the au
withholding obligations
withho
The host family also has no obligation to verify employment
T
eligibility The host family's responsibilities include
eligib
MEMORANDUM
To:
Marvin Krislov
From:
Nick Turner 5,
Re:
IRCA's employer sanctions and to who they do not apply.
Date:
June 19, 1995
Employer Sanctions
The employer sanction provisions of the Immigration Reform and Control Act of 1986
make it illegal to:
1
knowingly hire, recruit, or refer for a fee, for employment an alien that is
unauthorized for employment;
2 hire an individual for employment in the United States without completing an I-9
form (to verify that they are authorized to work); and
3 continue to employ an alien knowing that s/he is or has become unauthorized
alien with respect to such employment.
Penalties
Violation of the employer sanction provisions may result in penalties against
employers. The INS may impose civil cease and desist orders and monetary fines, and in the
case of "pattern and practice" violations, criminal penalties - including not more than six
months of imprisonment - may be imposed. IRCA does not impose penalties against aliens
that accept employment illegally.
Who is Grandfathered or Excepted?
IRCA's employee sanction coverage is comprehensive, with the following exceptions.
Grandfathered employees. The sanctions do not apply to the hiring, recruiting and referring
of individuals that occurred prior to November 7, 1986. Regarding continuing employment
violations (Number 3), if an employee began work before November 7, 1986 and is still
continuing in his or her employment, the employer cannot be sanctioned. Additionally, there
are a number of circumstances in which an individual's employment continuity has been
disrupted, but the sanctions still do not apply to the employer as long as the individual has a
reasonable expectation of resuming employment. Those circumstances include when the
individual:
takes approved leave, paid or unpaid;
is temporarily laid off for lack of work; and
is on strike or in a labor dispute.
Otherccircumstaneestareiated in
Other circumstar
This/means
Cassa this tbyJIRCA This means
Non-come
not
subject
sporadic
iis
not
subjecthat
sporadic,
!IFE
toeemployer sanations.
to-employer sand
OI Justice
OMB No. 1115-0136
Immigration and Naturalization Service
Employment Eligibility Verification
INSTRUCTIONS
PLEASE READ ALL INSTRUCTIONS CAREFULLY BEFORE COMPLETING THIS FORM.
Anti-Discrimination Notice. It is illegal to discriminate against any individual (other than an alien not authorized to work in th
U.S.) in hiring, discharging, or recruiting or referring for a fee because of that individual's national origin or citizenship status. It
illegal to discriminate against work eligible individuals. Employers CANNOT specify which document(s) they will accept from a
employee. The refusal to hire an individual because of a future expiration date may also constitute illegal discrimination.
Section 1 - Employee. All employees, citizens and
If an employee is rehired within three (3) years of the
noncitizens, hired after November 6, 1986, must complete
date this form was originally completed and the
Section 1 of this form at the time of hire, which is the actual
employee's work authorization has expired or if a
beginning of employment. The employer is responsible for
current employee's work authorization is about to
ensuring that Section 1 is timely and properly completed.
expire (reverification), complete Block B and:
examine any document that reflects that the
employee is authorized to work in the U.S. (see
List A or C),
Preparer/Translator Certification. The Preparer/Translator
record the document title, document number and
Certification must be completed if Section 1 is prepared by a
expiration date (if any) in Block C, and
person other than the employee. A preparer/translator may be
complete the signature block.
used only when the employee is unable to complete Section 1
on his/her own. However, the employee must still sign Section
Photocopying and Retaining Form I-9. A blank I-9 may be
1
personally.
reproduced provided both sides are copied. The Instructions
must be available to all employees completing this form.
Employers must retain completed I-9s for three (3) years after
Section 2 - Employer. For the purpose of completing this
the date of hire or one (1) year after the date employment ends,
whichever is later.
form, the term "employer" includes those recruiters and
referrers for a fee who are agricultural associations, agricultural
For more detailed information, you may refer to the INS
employers, or farm labor contractors.
Handbook for Employers, (Form M-274). You may obtain
the handbook at your local INS office.
Employers must complete Section 2 by examining evidence of
identity and employment eligibility within three (3) business
Privacy Act Notice. The authority for collecting this
days of the date employment begins. If employees are
information is the Immigration Reform and Control Act of 1986,
Pub. L. 99-603 (8 U.S.C. 1324a).
authorized to work, but are unable to present the required
document(s) within three business days, they must present a
This information is for employers to verify the eligibility of
receipt for the application of the document(s) within three
individuals for employment to preclude the unlawful hiring, or
business days and the actual document(s) within ninety (90)
recruiting or referring for a fee, of aliens who are not authorized
days. However, if employers hire individuals for a duration of
to work in the United States.
less than three business days. Section 2 must be completed at
the time employment begins. Employers must record: 1)
This information will be used by employers as a record of their
document title; 2) issuing authority; 3) document number, 4)
basis for determining eligibility of an employee to work in the
expiration date. if any; and 5) the date employment begins.
United States. The form will be kept by the employer and made
available for inspection by officials of the U.S. Immigration and
Employers must sign and date the certification. Employees
Naturalization Service, the Department of Labor, and the Office
must present original documents. Employers may, but are not
of Special Counsel for Immigration Related Unfair Employment
required to, photocopy the document(s) presented. These
Practices.
photocopies may only be used for the verification process and
must be retained with the I-9. However, employers are still
Submission of the information required in this form is voluntary.
responsible for completing the I-9.
However, an individual may not begin employment unless this
form is completed since employers are subject to civil or
criminal penalties if they do not comply with the Immigration
Section 3 - Updating and Reverification. Employers
Reform and Control Act of 1986.
Representative
must complete Section 3 when updating and/or reverifying the
Reporting Burden. We try to create forms and instructions that
1-9. Employers must reverify employment eligibility of their
are accurate, can be easily understood. and which impose the
employees on or before the expiration date recorded in
least possible burden on you to provide us with information.
Section 1. Employers CANNOT specify which document(s)
Often this is difficult because some immigration laws are very
they will-accept from an employee.
complex. Accordingly, the reporting burden for this collection of
ourder for this collection of
information is computed as follows 1)-learning about this form
Clearning about this
10
yee
Synama,
changed
at
completing the form minutes or
5 minutes minutes. and for an average updated notice complete
andifiting arecordkeeping) the form, 5 minutes, for an average of
45 minutes per response NEWOU have comments regarding the
avercomments regarding the
suggestions for TAB employee is rehired within three (3) years of the 6
Cangeuracy of this burden estimate, or suggestions for making this
form simpler, you can write to both the Immigration- and
this was originally completed and the
Naturalization Servitteem Steeets NaW Repend
reals NaW stills origidate the sames
Washington, D. 20536iliand the Office of Management and
Office of asapeviously indicated on this form (updating),
OMB
Budget, Paperwork Reduction Document Time: Project *QMB No. 11.15-0136.
rect.
Title
No complete Block Band the signature block.
Expiration
Washington, D.C. 20503.
Lattest under penalty of perjury; that to the best of
TY of (Revit employee 18 eligible to work use June: the documents
appear
10
be
EMPLOYERS MUST RETAIN COMPLETED hg
PLEASE DO NOT MAIL COMPLETED I-9 TO INS
U.S. Department of Justice
OMB No. 1115-0136
Immigration and Naturalization Service
Employment Eligibility Verification
Please read Instructions carefully before completing this form. The instructions must be available during completion of
this form. ANTI-DISCRIMINATION NOTICE. It is illegal to discriminate against work eligible Individuals. Employers
CANNOT specify which document(s) they will accept from an employee. The refusal to hire an individual because of a
future expiration date may also constitute Illegal discrimination.
Section 1. Employee Information and Verification. To be completed and signed by employee at the time employment begins
Print Name: Last
First
Middle Initial
Maiden Name
Address (Street Name and Number)
Apt. #
Date of Birth (month/day/year)
City
State
Zip Code
Social Security #
I am aware that federal law provides for
I attest, under penalty of perjury, that I am (check one of the following):
Imprisonment and/or fines for false statements or
A citizen or national of the United States
use of false documents in connection with the
A Lawful Permanent Resident (Alien # A
An alien authorized to work until
/
/
completion of this form.
(Alien # or Admission #
Employee's Signature
Date (month/day/year)
Preparer and/or Translator Certification. (To be completed and signed if Section 1 is prepared by a person
other than the employee.) / attest, under penalty of perjury, that / have assisted in the completion of this form and that
to the best of my knowledge the information is true and correct.
Preparer's/Translator's Signature
Print Name
Address (Street Name and Number, City, State, Zip Code)
Date (month/day/year)
Section 2 Employer Review and Verification. To be completed and signed by employer. Examine one document from List A OR
examine one document from List B and one from List c as listed on the reverse of this form and record the title, number and expiration date, if any, of
the document(s)
List A
OR
List B
AND
List c
Document title:
ing authority:
Document #:
Expiration Date (if any):
/
/
/
/
/
/
Document #:
Expiration Date (if any):
/
/
CERTIFICATION I attest, under penalty of perjury, that I have examined the document(s) presented by the above-named
employee, that the above-listed document(s) appear to be genuine and to relate to the employee named, that the
employee began employment on (month/day/year)
/
/
and that to the best of my knowledge the employee
is eligible to work In the United States. (State employment agencies may omit the date the employee began
employment).
Signature of Employer or Authorized Representative
ag
Print Name
Title
are
Business or Organization Name
Address (Street Name and Number, City, State, Zip Code)
Date (month/day/year)
7
Unexo
10
Unexpired Employment
tion
3.
Updating
and
Revertication. propon card-
completed
and
signed
by
Authorization
Document
issued
on
by the INS which
onth/day/year) (if
New Name (if applicable) Clinic rehired doctor or hospital record
B. Data of rehire (month/day/year) (if applicable)
G. # employee's previous grant expired, provide the information below for the document that establishes current employment
stablishes eligibility.
record
Document Title:
Document #:
Expiration Date (if any):
/
/
affest, under penalty of perjury, that to the best of my knowledge, this employee is eligible to work in the United States, and If the employeed
di the document( ments HODEL 1 have examined appear to be genuine and to relate to the individual.
Signature of Employer or Authorized Representative
Date (month/day/year)
daviver
Form 1-9 (Rev. 11-21-91) N
LISTS OF ACCEPTABLE DOCUMENTS
LIST A
LIST B
LIST c
Documents that Establish Both
Documents that Establish
Documents that Establish
Identity and Employment
OR
Identity
AND
Employment Eligibility
Eligibility
1. Driver's license or ID card
1. U.S. Passport (unexpired or
1. U.S. social security card issued
expired)
issued by a state or outlying
by the Social Security
possession of the United States
Administration (other than a
provided it contains a
card stating it is not valid for
2. Certificate of U.S. Citizenship
photograph or information such
employment)
(INS Form N-560 or N-561)
as name, date of birth, sex,
height, eye color, and address
3. Certificate of Naturalization
2. Certification of Birth Abroad
2. ID card issued by federal, state,
(INS Form N-550 or N-570)
issued by the Department of
or local government agencies or
State (Form FS-545 or Form
entities provided it contains a
DS-1350)
4. Unexpired foreign passport,
photograph or information such
with I-551 stamp or attached
as name, date of birth, sex,
INS Form I-94 indicating
height, eye color, and address
unexpired employment
3. Original or certified copy of a
authorization
3. School ID card with a
birth certificate issued by a
photograph
state, county, municipal
authority or outlying possession
5. Alien Registration Receipt Card
of the United States bearing an
4. Voter's registration card
with photograph (INS Form
official seal
I-151 or I-551)
5. U.S. Military card or draft record
6. Unexpired Temporary Resident
6. Military dependent's ID card
4. Native American tribal document
Card (INS Form I-688)
7. U.S. Coast Guard Merchant
Mariner Card
7. Unexpired Employment
5. U.S. Citizen ID Card (INS Form
Authorization Card (INS Form
8. Native American tribal document
I-197)
I-688A)
9. Driver's license issued by a
Canadian government authority
8. Unexpired Reentry Permit (INS
6. ID Card for use of Resident
ano
Rev
Form I-327)
Citizen in the United States
For persons under age 18 who
(INS Form I-179)
are unable to present a
9. Unexpired Refugee Travel
document listed above:
Document (INS Form I-571)
employee
7
Unexpired employment follows
aired employment
nzatio 10 Unexpired Employment and(3)
School record discreport card
attissed
NNS rother horization Document issued
ang A.
and froms Other than the form
response Name
under byrthe INS which contains a
11. Clinic doctor or hospital record
photograph (INS Form I-688B)
IS rehired Within three years of fhr
This
and
Naturalization Service Sweet
12. ornersery school the same
Washington D. C. 206 the
record indicated on this form (uodating)
Budget. Paperwork Reduction
Brandahe signature block
Washington DC 20503
Illustrations of many of these documents appear in Handbookfor Employers (M-274)
P1 EASF DO NOT MAIL
Form I-9 (Rev. 11-21-91) N
MEMORANDUM
TO:
Doug Sheorn, Deputy Director of Information Systems,
Presidential Personnel, Rm 133/OEOB, (202) 456-2966
FROM:
(Name, title)
(Department or Agency)
(Phone number)
DATE:
RE:
This NC-SES appointee has cleared our Counsel review process and is ready to
proceed:
NAME OF APPOINTEE
TITLE/AREA
DEPARTMENT/AGENCY
DATE PUBLIC RECORD RESEARCH COMPLETED:
PERSONAL DATA STATEMENT:
(DATESSENT TO
CANDIDATE)
FROM
FROM
DATE CANDID
DATE CANDIDATE WAS INTERVIEWED:
1 (WHITE HOUSE COUNS
(WHITE HOUSE COUNSEL NOTIFIED, IF/APREICABLE:
)
OPP Form SESVETT 4/19/94
OPP Form SESVETT: 4/19/94