Social Security Act Amendments of 1994

Social Security Act Amendments of 1994 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act (SSA) and the Internal Revenue Code (IRC) to raise from $50 to $1,250 the minimum amount of cash remuneration payable to a domestic employee in any year which is subject to social security employment taxes. Provides for annual adjustments of such threshold.

Amends IRC to: (1) provide for the coordination of the collection of domestic service employment taxes with the collection of income taxes; (2) subject domestic service employment taxes to estimated tax provisions; (3) exempt certain employers from the payment of such taxes; and (4) authorize the Secretary of the Treasury to enter into agreements to collect State unemployment taxes imposed on such remuneration.

Directs the Secretary to prepare and make available to employers information on their tax obligations under Federal and State law with regard to domestic employees.

Absolves employers from liability for certain underpaid taxes and associated penalty and interest payments owed before this Act becomes effective.

Directs the Secretary of Health and Human Services to study and report to the Congress on the reasons for rising costs payable from such Fund.

Amends SSA title II to: (1) increase the portion of wages and self-employment income subject to social security taxation that is allocated to the Federal Disability Insurance Trust Fund (Fund); and (2) modify restrictions on social security benefit payments to incarcerated felons, with changes converting such restrictions into an outright prohibition applicable to all individuals sentenced to imprisonment for more than one year (currently only convicted felons), as well as to individuals confined pursuant to a court order based on verdicts of insanity or similar mental disorders.