26 U.S.C. § 3121 — Definitions

Page 2693 TITLE 26—INTERNAL REVENUE CODE § 3121 Sec. 3128. Short title. Editorial Notes AMENDMENTS 1988—Pub. L. 100–647, title VIII, § 8007(a)(2), Nov. 10, 1988, 102 Stat. 3782, added item 3127 and redesignated former item 3127 as 3128. 1986—Pub. L. 99–509, title IX, § 9002(a)(2), Oct. 21, 1986, 100 Stat. 1971, added item 3126 and redesignated former item 3126 as 3127. Pub. L. 99–272, title XIII, § 13205(a)(2)(A)(iii), Apr. 7, 1986, 100 Stat. 315, inserted ‘‘States,’’ in item 3125. 1965—Pub. L. 89–97, title III, § 317(c)(3), July 30, 1965, 79 Stat. 389, inserted reference to the District of Columbia in item 3125. 1960—Pub. L. 86–778, title I, § 103(q)(2), Sept. 13, 1960, 74 Stat. 940, added item 3125 and redesignated former item 3125 as 3126. § 3121. Definitions (a) Wages For purposes of this chapter, the term ‘‘wages’’ means all remuneration for employ- ment, including the cash value of all remunera- tion (including benefits) paid in any medium other than cash; except that such term shall not include— (1) in the case of the taxes imposed by sec- tions 3101(a) and 3111(a) that part of the remu- neration which, after remuneration (other than remuneration referred to in the suc- ceeding paragraphs of this subsection) equal to the contribution and benefit base (as deter- mined under section 230 of the Social Security Act) with respect to employment has been paid to an individual by an employer during the calendar year with respect to which such contribution and benefit base is effective, is paid to such individual by such employer dur- ing such calendar year. If an employer (herein- after referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of an- other employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and imme- diately after the acquisition employs in his trade or business an individual who imme- diately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining whether the successor employer has paid remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment equal to the contribu- tion and benefit base (as determined under section 230 of the Social Security Act) to such individual during such calendar year, any re- muneration (other than remuneration referred to in the succeeding paragraphs of this sub- section) with respect to employment paid (or considered under this paragraph as having been paid) to such individual by such prede- cessor during such calendar year and prior to such acquisition shall be considered as having been paid by such successor employer; (2) the amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of his dependents under a plan or system established by an employer which makes provision for his employees gen- erally (or for his employees generally and their dependents) or for a class or classes of his employees (or for a class or classes of his employees and their dependents), on account of— (A) sickness or accident disability (but, in the case of payments made to an employee or any of his dependents, this subparagraph shall exclude from the term ‘‘wages’’ only payments which are received under a work- man’s compensation law), or (B) medical or hospitalization expenses in connection with sickness or accident dis- ability, or (C) death, except that this paragraph does not apply to a payment for group-term life insurance to the extent that such payment is includible in the gross income of the em- ployee; [(3) Repealed. Pub. L. 98–21, title III, § 324(a)(3)(B), Apr. 20, 1983, 97 Stat. 123] (4) any payment on account of sickness or accident disability, or medical or hospitaliza- tion expenses in connection with sickness or accident disability, made by an employer to, or on behalf of, an employee after the expira- tion of 6 calendar months following the last calendar month in which the employee worked for such employer; (5) any payment made to, or on behalf of, an employee or his beneficiary— (A) from or to a trust described in section 401(a) which is exempt from tax under sec- tion 501(a) at the time of such payment un- less such payment is made to an employee of the trust as remuneration for services ren- dered as such employee and not as a bene- ficiary of the trust, (B) under or to an annuity plan which, at the time of such payment, is a plan de- scribed in section 403(a), (C) under a simplified employee pension (as defined in section 408(k)(1)), other than any contributions described in section 408(k)(6), (D) under or to an annuity contract de- scribed in section 403(b), other than a pay- ment for the purchase of such contract which is made by reason of a salary reduc- tion agreement (whether evidenced by a written instrument or otherwise), (E) under or to an exempt governmental deferred compensation plan (as defined in subsection (v)(3)), (F) to supplement pension benefits under a plan or trust described in any of the fore- going provisions of this paragraph to take into account some portion or all of the in- crease in the cost of living (as determined by the Secretary of Labor) since retirement but only if such supplemental payments are under a plan which is treated as a welfare plan under section 3(2)(B)(ii) of the Em- ployee Retirement Income Security Act of 1974, (G) under a cafeteria plan (within the meaning of section 125) if such payment would not be treated as wages without re- Page 2694 TITLE 26—INTERNAL REVENUE CODE § 3121 gard to such plan and it is reasonable to be- lieve that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received, (H) under an arrangement to which section 408(p) applies, other than any elective con- tributions under paragraph (2)(A)(i) thereof, or (I) under a plan described in section 457(e)(11)(A)(ii) and maintained by an eligi- ble employer (as defined in section 457(e)(1)); (6) the payment by an employer (without de- duction from the remuneration of the em- ployee)— (A) of the tax imposed upon an employee under section 3101, or (B) of any payment required from an em- ployee under a State unemployment com- pensation law, with respect to remuneration paid to an em- ployee for domestic service in a private home of the employer or for agricultural labor; (7)(A) remuneration paid in any medium other than cash to an employee for service not in the course of the employer’s trade or busi- ness or for domestic service in a private home of the employer; (B) cash remuneration paid by an employer in any calendar year to an employee for do- mestic service in a private home of the em- ployer (including domestic service on a farm operated for profit), if the cash remuneration paid in such year by the employer to the em- ployee for such service is less than the appli- cable dollar threshold (as defined in subsection (x)) for such year; (C) cash remuneration paid by an employer in any calendar year to an employee for serv- ice not in the course of the employer’s trade or business, if the cash remuneration paid in such year by the employer to the employee for such service is less than $100. As used in this subparagraph, the term ‘‘service not in the course of the employer’s trade or business’’ does not include domestic service in a private home of the employer and does not include service described in subsection (g)(5); (8)(A) remuneration paid in any medium other than cash for agricultural labor; (B) cash remuneration paid by an employer in any calendar year to an employee for agri- cultural labor unless— (i) the cash remuneration paid in such year by the employer to the employee for such labor is $150 or more, or (ii) the employer’s expenditures for agri- cultural labor in such year equal or exceed $2,500, except that clause (ii) shall not apply in deter- mining whether remuneration paid to an em- ployee constitutes ‘‘wages’’ under this section if such employee (I) is employed as a hand har- vest laborer and is paid on a piece rate basis in an operation which has been, and is custom- arily and generally recognized as having been, paid on a piece rate basis in the region of em- ployment, (II) commutes daily from his per- manent residence to the farm on which he is so employed, and (III) has been employed in agriculture less than 13 weeks during the pre- ceding calendar year; [(9) Repealed. Pub. L. 98–21, title III, § 324(a)(3)(B), Apr. 20, 1983, 97 Stat. 123] (10) remuneration paid by an employer in any calendar year to an employee for service described in subsection (d)(3)(C) (relating to home workers), if the cash remuneration paid in such year by the employer to the employee for such service is less than $100; (11) remuneration paid to or on behalf of an employee if (and to the extent that) at the time of the payment of such remuneration it is reasonable to believe that a corresponding deduction is allowable under section 217 (de- termined without regard to section 274(n)); (12)(A) tips paid in any medium other than cash; (B) cash tips received by an employee in any calendar month in the course of his employ- ment by an employer unless the amount of such cash tips is $20 or more; (13) any payment or series of payments by an employer to an employee or any of his depend- ents which is paid— (A) upon or after the termination of an employee’s employment relationship be- cause of (i) death, or (ii) retirement for dis- ability, and (B) under a plan established by the em- ployer which makes provision for his em- ployees generally or a class or classes of his employees (or for such employees or class or classes of employees and their dependents), other than any such payment or series of pay- ments which would have been paid if the em- ployee’s employment relationship had not been so terminated; (14) any payment made by an employer to a survivor or the estate of a former employee after the calendar year in which such em- ployee died; (15) any payment made by an employer to an employee, if at the time such payment is made such employee is entitled to disability insur- ance benefits under section 223(a) of the Social Security Act and such entitlement com- menced prior to the calendar year in which such payment is made, and if such employee did not perform any services for such em- ployer during the period for which such pay- ment is made; (16) remuneration paid by an organization exempt from income tax under section 501(a) (other than an organization described in sec- tion 401(a)) or under section 521 in any cal- endar year to an employee for service rendered in the employ of such organization, if the re- muneration paid in such year by the organiza- tion to the employee for such service is less than $100; [(17) Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(19)(B)(iv), Dec. 19, 2014, 128 Stat. 4040] (18) any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 127, 129, 134(b)(4), or 134(b)(5); (19) the value of any meals or lodging fur- nished by or on behalf of the employer if at Page 2695 TITLE 26—INTERNAL REVENUE CODE § 3121 1 So in original. the time of such furnishing it is reasonable to believe that the employee will be able to ex- clude such items from income under section 119; (20) any benefit provided to or on behalf of an employee if at the time such benefit is pro- vided it is reasonable to believe that the em- ployee will be able to exclude such benefit from income under section 74(c), 108(f)(4), 117, or 132; (21) in the case of a member of an Indian tribe, any remuneration on which no tax is im- posed by this chapter by reason of section 7873 (relating to income derived by Indians from exercise of fishing rights); (22) remuneration on account of— (A) a transfer of a share of stock to any in- dividual pursuant to an exercise of an incen- tive stock option (as defined in section 422(b)) or under an employee stock purchase plan (as defined in section 423(b)), or (B) any disposition by the individual of such stock; or (23) any benefit or payment which is exclud- able from the gross income of the employee under section section 1 139B(a). Nothing in the regulations prescribed for pur- poses of chapter 24 (relating to income tax with- holding) which provides an exclusion from ‘‘wages’’ as used in such chapter shall be con- strued to require a similar exclusion from ‘‘wages’’ in the regulations prescribed for pur- poses of this chapter. Except as otherwise pro- vided in regulations prescribed by the Secretary, any third party which makes a payment in- cluded in wages solely by reason of the par- enthetical matter contained in subparagraph (A) of paragraph (2) shall be treated for purposes of this chapter and chapter 22 as the employer with respect to such wages. (b) Employment For purposes of this chapter, the term ‘‘em- ployment’’ means any service, of whatever na- ture, performed (A) by an employee for the per- son employing him, irrespective of the citizen- ship or residence of either, (i) within the United States, or (ii) on or in connection with an Amer- ican vessel or American aircraft under a con- tract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, or (B) outside the United States by a citizen or resident of the United States as an employee for an American employer (as defined in subsection (h)), or (C) if it is service, regardless of where or by whom performed, which is designated as employment or recognized as equivalent to employment under an agreement entered into under section 233 of the Social Security Act; except that such term shall not include— (1) service performed by foreign agricultural workers lawfully admitted to the United States from the Bahamas, Jamaica, and the other British West Indies, or from any other foreign country or possession thereof, on a temporary basis to perform agricultural labor; (2) domestic service performed in a local col- lege club, or local chapter of a college frater- nity or sorority, by a student who is enrolled and is regularly attending classes at a school, college, or university; (3)(A) service performed by a child under the age of 18 in the employ of his father or mother; (B) service not in the course of the employ- er’s trade or business, or domestic service in a private home of the employer, performed by an individual under the age of 21 in the employ of his father or mother, or performed by an in- dividual in the employ of his spouse or son or daughter; except that the provisions of this subparagraph shall not be applicable to such domestic service performed by an individual in the employ of his son or daughter if— (i) the employer is a surviving spouse or a divorced individual and has not remarried, or has a spouse living in the home who has a mental or physical condition which results in such spouse’s being incapable of caring for a son, daughter, stepson, or stepdaughter (referred to in clause (ii)) for at least 4 con- tinuous weeks in the calendar quarter in which the service is rendered, and (ii) a son, daughter, stepson, or step- daughter of such employer is living in the home, and (iii) the son, daughter, stepson, or step- daughter (referred to in clause (ii)) has not attained age 18 or has a mental or physical condition which requires the personal care and supervision of an adult for at least 4 continuous weeks in the calendar quarter in which the service is rendered; (4) service performed by an individual on or in connection with a vessel not an American vessel, or on or in connection with an aircraft not an American aircraft, if (A) the individual is employed on and in connection with such vessel or aircraft, when outside the United States and (B)(i) such individual is not a cit- izen of the United States or (ii) the employer is not an American employer; (5) service performed in the employ of the United States or any instrumentality of the United States, if such service— (A) would be excluded from the term ‘‘em- ployment’’ for purposes of this title if the provisions of paragraphs (5) and (6) of this subsection as in effect in January 1983 had remained in effect, and (B) is performed by an individual who— (i) has been continuously performing service described in subparagraph (A) since December 31, 1983, and for purposes of this clause— (I) if an individual performing service described in subparagraph (A) returns to the performance of such service after being separated therefrom for a period of less than 366 consecutive days, regardless of whether the period began before, on, or after December 31, 1983, then such service shall be considered continuous, (II) if an individual performing service described in subparagraph (A) returns to Page 2696 TITLE 26—INTERNAL REVENUE CODE § 3121 the performance of such service after being detailed or transferred to an inter- national organization as described under section 3343 of subchapter III of chapter 33 of title 5, United States Code, or under section 3581 of chapter 35 of such title, then the service performed for that orga- nization shall be considered service de- scribed in subparagraph (A), (III) if an individual performing service described in subparagraph (A) is reem- ployed or reinstated after being sepa- rated from such service for the purpose of accepting employment with the Amer- ican Institute in Taiwan as provided under section 3310 of chapter 48 of title 22, United States Code, then the service performed for that Institute shall be con- sidered service described in subpara- graph (A), (IV) if an individual performing service described in subparagraph (A) returns to the performance of such service after performing service as a member of a uni- formed service (including, for purposes of this clause, service in the National Guard and temporary service in the Coast Guard Reserve) and after exer- cising restoration or reemployment rights as provided under chapter 43 of title 38, United States Code, then the service so performed as a member of a uniformed service shall be considered service described in subparagraph (A), and (V) if an individual performing service described in subparagraph (A) returns to the performance of such service after employment (by a tribal organization) to which section 104(e)(2) of the Indian Self- Determination Act applies, then the service performed for that tribal organi- zation shall be considered service de- scribed in subparagraph (A); or (ii) is receiving an annuity from the Civil Service Retirement and Disability Fund, or benefits (for service as an em- ployee) under another retirement system established by a law of the United States for employees of the Federal Government (other than for members of the uniformed service); except that this paragraph shall not apply with respect to any such service performed on or after any date on which such individual per- forms— (C) service performed as the President or Vice President of the United States, (D) service performed— (i) in a position placed in the Executive Schedule under sections 5312 through 5317 of title 5, United States Code, (ii) as a noncareer appointee in the Sen- ior Executive Service or a noncareer mem- ber of the Senior Foreign Service, or (iii) in a position to which the individual is appointed by the President (or his des- ignee) or the Vice President under section 105(a)(1), 106(a)(1), or 107 (a)(1) or (b)(1) of title 3, United States Code, if the max- imum rate of basic pay for such position is at or above the rate for level V of the Ex- ecutive Schedule, (E) service performed as the Chief Justice of the United States, an Associate Justice of the Supreme Court, a judge of a United States court of appeals, a judge of a United States district court (including the district court of a territory), a judge of the United States Court of Federal Claims, a judge of the United States Court of International Trade, a judge or special trial judge of the United States Tax Court, a United States magistrate judge, or a referee in bankruptcy or United States bankruptcy judge, (F) service performed as a Member, Dele- gate, or Resident Commissioner of or to the Congress, (G) any other service in the legislative branch of the Federal Government if such service— (i) is performed by an individual who was not subject to subchapter III of chapter 83 of title 5, United States Code, or to an- other retirement system established by a law of the United States for employees of the Federal Government (other than for members of the uniformed services), on December 31, 1983, or (ii) is performed by an individual who has, at any time after December 31, 1983, received a lump-sum payment under sec- tion 8342(a) of title 5, United States Code, or under the corresponding provision of the law establishing the other retirement system described in clause (i), or (iii) is performed by an individual after such individual has otherwise ceased to be subject to subchapter III of chapter 83 of title 5, United States Code (without having an application pending for coverage under such subchapter), while performing service in the legislative branch (determined with- out regard to the provisions of subpara- graph (B) relating to continuity of employ- ment), for any period of time after Decem- ber 31, 1983, and for purposes of this subparagraph (G) an individual is subject to such subchapter III or to any such other retirement system at any time only if (a) such individual’s pay is subject to deductions, contributions, or similar payments (concurrent with the serv- ice being performed at that time) under sec- tion 8334(a) of such title 5 or the cor- responding provision of the law establishing such other system, or (in a case to which section 8332(k)(1) of such title applies) such individual is making payments of amounts equivalent to such deductions, contribu- tions, or similar payments while on leave without pay, or (b) such individual is receiv- ing an annuity from the Civil Service Re- tirement and Disability Fund, or is receiving benefits (for service as an employee) under another retirement system established by a law of the United States for employees of the Federal Government (other than for members of the uniformed services), or (H) service performed by an individual— Page 2697 TITLE 26—INTERNAL REVENUE CODE § 3121 (i) on or after the effective date of an election by such individual, under section 301 of the Federal Employees’ Retirement System Act of 1986, section 307 of the Cen- tral Intelligence Agency Retirement Act (50 U.S.C. 2157), or the Federal Employees’ Retirement System Open Enrollment Act of 1997, to become subject to the Federal Employees’ Retirement System provided in chapter 84 of title 5, United States Code, or (ii) on or after the effective date of an election by such individual, under regula- tions issued under section 860 of the For- eign Service Act of 1980, to become subject to the Foreign Service Pension System provided in subchapter II of chapter 8 of title I of such Act; (6) service performed in the employ of the United States or any instrumentality of the United States if such service is performed— (A) in a penal institution of the United States by an inmate thereof; (B) by any individual as an employee in- cluded under section 5351(2) of title 5, United States Code (relating to certain interns, stu- dent nurses, and other student employees of hospitals of the Federal Government), other than as a medical or dental intern or a med- ical or dental resident in training; or (C) by any individual as an employee serv- ing on a temporary basis in case of fire, storm, earthquake, flood, or other similar emergency; (7) service performed in the employ of a State, or any political subdivision thereof, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, ex- cept that this paragraph shall not apply in the case of— (A) service which, under subsection (j), constitutes covered transportation service, (B) service in the employ of the Govern- ment of Guam or the Government of Amer- ican Samoa or any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, performed by an officer or employee thereof (including a member of the legislature of any such Government or polit- ical subdivision), and, for purposes of this title with respect to the taxes imposed by this chapter— (i) any person whose service as such an officer or employee is not covered by a re- tirement system established by a law of the United States shall not, with respect to such service, be regarded as an em- ployee of the United States or any agency or instrumentality thereof, and (ii) the remuneration for service de- scribed in clause (i) (including fees paid to a public official) shall be deemed to have been paid by the Government of Guam or the Government of American Samoa or by a political subdivision thereof or an in- strumentality of any one or more of the foregoing which is wholly owned thereby, whichever is appropriate, (C) service performed in the employ of the District of Columbia or any instrumentality which is wholly owned thereby, if such serv- ice is not covered by a retirement system es- tablished by a law of the United States (other than the Federal Employees Retire- ment System provided in chapter 84 of title 5, United States Code); except that the pro- visions of this subparagraph shall not be ap- plicable to service performed— (i) in a hospital or penal institution by a patient or inmate thereof; (ii) by any individual as an employee in- cluded under section 5351(2) of title 5, United States Code (relating to certain in- terns, student nurses, and other student employees of hospitals of the District of Columbia Government), other than as a medical or dental intern or as a medical or dental resident in training; (iii) by any individual as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood or other similar emergency; or (iv) by a member of a board, committee, or council of the District of Columbia, paid on a per diem, meeting, or other fee basis, (D) service performed in the employ of the Government of Guam (or any instrumen- tality which is wholly owned by such Gov- ernment) by an employee properly classified as a temporary or intermittent employee, if such service is not covered by a retirement system established by a law of Guam; except that (i) the provisions of this subparagraph shall not be applicable to services performed by an elected official or a member of the leg- islature or in a hospital or penal institution by a patient or inmate thereof, and (ii) for purposes of this subparagraph, clauses (i) and (ii) of subparagraph (B) shall apply, (E) service included under an agreement entered into pursuant to section 218 of the Social Security Act, or (F) service in the employ of a State (other than the District of Columbia, Guam, or American Samoa), of any political subdivi- sion thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, by an individual who is not a member of a retirement system of such State, political subdivision, or instru- mentality, except that the provisions of this subparagraph shall not be applicable to serv- ice performed— (i) by an individual who is employed to relieve such individual from unemploy- ment; (ii) in a hospital, home, or other institu- tion by a patient or inmate thereof; (iii) by any individual as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency; (iv) by an election official or election worker if the remuneration paid in a cal- endar year for such service is less than $1,000 with respect to service performed during any calendar year commencing on or after January 1, 1995, ending on or be- fore December 31, 1999, and the adjusted amount determined under section 218(c)(8)(B) of the Social Security Act for Page 2698 TITLE 26—INTERNAL REVENUE CODE § 3121 any calendar year commencing on or after January 1, 2000, with respect to service performed during such calendar year; or (v) by an employee in a position com- pensated solely on a fee basis which is treated pursuant to section 1402(c)(2)(E) as a trade or business for purposes of inclu- sion of such fees in net earnings from self- employment; for purposes of this subparagraph, except as provided in regulations prescribed by the Secretary, the term ‘‘retirement system’’ has the meaning given such term by section 218(b)(4) of the Social Security Act; (8)(A) service performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order, except that this subparagraph shall not apply to service per- formed by a member of such an order in the exercise of such duties, if an election of cov- erage under subsection (r) is in effect with re- spect to such order, or with respect to the au- tonomous subdivision thereof to which such member belongs; (B) service performed in the employ of a church or qualified church-controlled organi- zation if such church or organization has in ef- fect an election under subsection (w), other than service in an unrelated trade or business (within the meaning of section 513(a)); (9) service performed by an individual as an employee or employee representative as de- fined in section 3231; (10) service performed in the employ of— (A) a school, college, or university, or (B) an organization described in section 509(a)(3) if the organization is organized, and at all times thereafter is operated, exclu- sively for the benefit of, to perform the func- tions of, or to carry out the purposes of a school, college, or university and is oper- ated, supervised, or controlled by or in con- nection with such school, college, or univer- sity, unless it is a school, college, or univer- sity of a State or a political subdivision thereof and the services performed in its em- ploy by a student referred to in section 218(c)(5) of the Social Security Act are cov- ered under the agreement between the Com- missioner of Social Security and such State entered into pursuant to section 218 of such Act; if such service is performed by a student who is enrolled and regularly attending classes at such school, college, or university; (11) service performed in the employ of a for- eign government (including service as a con- sular or other officer or employee or a nondip- lomatic representative); (12) service performed in the employ of an instrumentality wholly owned by a foreign government— (A) if the service is of a character similar to that performed in foreign countries by employees of the United States Government or of an instrumentality thereof; and (B) if the Secretary of State shall certify to the Secretary of the Treasury that the foreign government, with respect to whose instrumentality and employees thereof ex- emption is claimed, grants an equivalent ex- emption with respect to similar service per- formed in the foreign country by employees of the United States Government and of in- strumentalities thereof; (13) service performed as a student nurse in the employ of a hospital or a nurses’ training school by an individual who is enrolled and is regularly attending classes in a nurses’ train- ing school chartered or approved pursuant to State law; (14)(A) service performed by an individual under the age of 18 in the delivery or distribu- tion of newspapers or shopping news, not in- cluding delivery or distribution to any point for subsequent delivery or distribution; (B) service performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him at a fixed price, his compensation being based on the re- tention of the excess of such price over the amount at which the newspapers or magazines are charged to him, whether or not he is guar- anteed a minimum amount of compensation for such service, or is entitled to be credited with the unsold newspapers or magazines turned back; (15) service performed in the employ of an international organization, except service which constitutes ‘‘employment’’ under sub- section (y); (16) service performed by an individual under an arrangement with the owner or tenant of land pursuant to which— (A) such individual undertakes to produce agricultural or horticultural commodities (including livestock, bees, poultry, and fur- bearing animals and wildlife) on such land, (B) the agricultural or horticultural com- modities produced by such individual, or the proceeds therefrom, are to be divided be- tween such individual and such owner or tenant, and (C) the amount of such individual’s share depends on the amount of the agricultural or horticultural commodities produced; [(17) Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(99)(C)(i), Dec. 19, 2014, 128 Stat. 4052] (18) service performed in Guam by a resident of the Republic of the Philippines while in Guam on a temporary basis as a non- immigrant alien admitted to Guam pursuant to section 101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)); (19) Service which is performed by a non- resident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigra- tion and Nationality Act, as amended, and which is performed to carry out the purpose specified in subparagraph (F), (J), (M), or (Q), as the case may be; (20) service (other than service described in paragraph (3)(A)) performed by an individual Page 2699 TITLE 26—INTERNAL REVENUE CODE § 3121 on a boat engaged in catching fish or other forms of aquatic animal life under an arrange- ment with the owner or operator of such boat pursuant to which— (A) such individual does not receive any cash remuneration other than as provided in subparagraph (B) and other than cash remu- neration— (i) which does not exceed $100 per trip; (ii) which is contingent on a minimum catch; and (iii) which is paid solely for additional duties (such as mate, engineer, or cook) for which additional cash remuneration is traditional in the industry, (B) such individual receives a share of the boat’s (or the boats’ in the case of a fishing operation involving more than one boat) catch of fish or other forms of aquatic ani- mal life or a share of the proceeds from the sale of such catch, and (C) the amount of such individual’s share depends on the amount of the boat’s (or the boats’ in the case of a fishing operation in- volving more than one boat) catch of fish or other forms of aquatic animal life, but only if the operating crew of such boat (or each boat from which the individual receives a share in the case of a fishing operation involv- ing more than one boat) is normally made up of fewer than 10 individuals; (21) domestic service in a private home of the employer which— (A) is performed in any year by an indi- vidual under the age of 18 during any portion of such year; and (B) is not the principal occupation of such employee; or (22) service performed by members of Indian tribal councils as tribal council members in the employ of an Indian tribal government, ex- cept that this paragraph shall not apply in the case of service included under an agreement under section 218A of the Social Security Act. For purposes of paragraph (20), the operating crew of a boat shall be treated as normally made up of fewer than 10 individuals if the average size of the operating crew on trips made during the preceding 4 calendar quarters consisted of fewer than 10 individuals. (c) Included and excluded service For purposes of this chapter, if the services performed during one-half or more of any pay period by an employee for the person employing him constitute employment, all the services of such employee for such period shall be deemed to be employment; but if the services performed during more than one-half of any such pay pe- riod by an employee for the person employing him do not constitute employment, then none of the services of such employee for such period shall be deemed to be employment. As used in this subsection, the term ‘‘pay period’’ means a period (of not more than 31 consecutive days) for which a payment of remuneration is ordinarily made to the employee by the person employing him. This subsection shall not be applicable with respect to services performed in a pay pe- riod by an employee for the person employing him, where any of such service is excepted by subsection (b)(9). (d) Employee For purposes of this chapter, the term ‘‘em- ployee’’ means— (1) any officer of a corporation; or (2) any individual who, under the usual com- mon law rules applicable in determining the employer-employee relationship, has the sta- tus of an employee; or (3) any individual (other than an individual who is an employee under paragraph (1) or (2)) who performs services for remuneration for any person— (A) as an agent-driver or commission-driv- er engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry-cleaning services, for his principal; (B) as a full-time life insurance salesman; (C) as a home worker performing work, ac- cording to specifications furnished by the person for whom the services are performed, on materials or goods furnished by such per- son which are required to be returned to such person or a person designated by him; or (D) as a traveling or city salesman, other than as an agent-driver or commission-driv- er, engaged upon a full-time basis in the so- licitation on behalf of, and the transmission to, his principal (except for side-line sales activities on behalf of some other person) of orders from wholesalers, retailers, contrac- tors, or operators of hotels, restaurants, or other similar establishments for merchan- dise for resale or supplies for use in their business operations; if the contract of service contemplates that substantially all of such services are to be per- formed personally by such individual; except that an individual shall not be included in the term ‘‘employee’’ under the provisions of this paragraph if such individual has a substantial investment in facilities used in connection with the performance of such services (other than in facilities for transportation), or if the services are in the nature of a single trans- action not part of a continuing relationship with the person for whom the services are per- formed; or (4) any individual who performs services that are included under an agreement entered into pursuant to section 218 or 218A of the So- cial Security Act. (e) State, United States, and citizen For purposes of this chapter— (1) State The term ‘‘State’’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. (2) United States The term ‘‘United States’’ when used in a geographical sense includes the Common- wealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. Page 2700 TITLE 26—INTERNAL REVENUE CODE § 3121 An individual who is a citizen of the Common- wealth of Puerto Rico (but not otherwise a cit- izen of the United States) shall be considered, for purposes of this section, as a citizen of the United States. (f) American vessel and aircraft For purposes of this chapter, the term ‘‘Amer- ican vessel’’ means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither docu- mented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any State; and the term ‘‘American aircraft’’ means an air- craft registered under the laws of the United States. (g) Agricultural labor For purposes of this chapter, the term ‘‘agri- cultural labor’’ includes all service performed— (1) on a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any ag- ricultural or horticultural commodity, includ- ing the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife; (2) in the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, im- provement, or maintenance of such farm and its tools and equipment, or in salvaging tim- ber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm; (3) in connection with the production or har- vesting of any commodity defined as an agri- cultural commodity in section 15(g) of the Ag- ricultural Marketing Act, as amended (12 U.S.C. 1141j), or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for prof- it, used exclusively for supplying and storing water for farming purposes; (4)(A) in the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, stor- ing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity; but only if such op- erator produced more than one-half of the commodity with respect to which such service is performed; (B) in the employ of a group of operators of farms (other than a cooperative organization) in the performance of service described in sub- paragraph (A), but only if such operators pro- duced all of the commodity with respect to which such service is performed. For purposes of this subparagraph, any unincorporated group of operators shall be deemed a coopera- tive organization if the number of operators comprising such group is more than 20 at any time during the calendar year in which such service is performed; (C) the provisions of subparagraphs (A) and (B) shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freez- ing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for con- sumption; or (5) on a farm operated for profit if such serv- ice is not in the course of the employer’s trade or business. As used in this subsection, the term ‘‘farm’’ in- cludes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agri- cultural or horticultural commodities, and or- chards. (h) American employer For purposes of this chapter, the term ‘‘Amer- ican employer’’ means an employer which is— (1) the United States or any instrumentality thereof, (2) an individual who is a resident of the United States, (3) a partnership, if two-thirds or more of the partners are residents of the United States, (4) a trust, if all of the trustees are residents of the United States, or (5) a corporation organized under the laws of the United States or of any State. (i) Computation of wages in certain cases (1) Domestic service For purposes of this chapter, in the case of domestic service described in subsection (a)(7)(B), any payment of cash remuneration for such service which is more or less than a whole-dollar amount shall, under such condi- tions and to such extent as may be prescribed by regulations made under this chapter, be computed to the nearest dollar. For the pur- pose of the computation to the nearest dollar, the payment of a fractional part of a dollar shall be disregarded unless it amounts to one- half dollar or more, in which case it shall be increased to $1. The amount of any payment of cash remuneration so computed to the nearest dollar shall, in lieu of the amount actually paid, be deemed to constitute the amount of cash remuneration for purposes of subsection (a)(7)(B). (2) Service in the uniformed services For purposes of this chapter, in the case of an individual performing service, as a member of a uniformed service, to which the provisions of subsection (m)(1) are applicable, the term ‘‘wages’’ shall, subject to the provisions of subsection (a)(1) of this section, include as such individual’s remuneration for such serv- ice only (A) his basic pay as described in chap- ter 3 and section 1009 of title 37, United States Code, in the case of an individual performing service to which subparagraph (A) of such sub- section (m)(1) applies, or (B) his compensation for such service as determined under section 206(a) of title 37, United States Code, in the case of an individual performing service to which subparagraph (B) of such subsection (m)(1) applies. (3) Peace Corps volunteer service For purposes of this chapter, in the case of an individual performing service, as a volun- Page 2701 TITLE 26—INTERNAL REVENUE CODE § 3121 teer or volunteer leader within the meaning of the Peace Corps Act, to which the provisions of section 3121(p) are applicable, the term ‘‘wages’’ shall, subject to the provisions of subsection (a)(1) of this section, include as such individual’s remuneration for such serv- ice only amounts paid pursuant to section 5(c) or 6(1) of the Peace Corps Act. (4) Service performed by certain members of religious orders For purposes of this chapter, in any case where an individual is a member of a religious order (as defined in subsection (r)(2)) per- forming service in the exercise of duties re- quired by such order, and an election of cov- erage under subsection (r) is in effect with re- spect to such order or with respect to the au- tonomous subdivision thereof to which such member belongs, the term ‘‘wages’’ shall, sub- ject to the provisions of subsection (a)(1), in- clude as such individual’s remuneration for such service the fair market value of any board, lodging, clothing, and other perquisites furnished to such member by such order or subdivision thereof or by any other person or organization pursuant to an agreement with such order or subdivision, except that the amount included as such individual’s remu- neration under this paragraph shall not be less than $100 a month. (5) Service performed by certain retired jus- tices and judges For purposes of this chapter, in the case of an individual performing service under the provisions of section 294 of title 28, United States Code (relating to assignment of retired justices and judges to active duty), the term ‘‘wages’’ shall not include any payment under section 371(b) of such title 28 which is received during the period of such service. (j) Covered transportation service For purposes of this chapter— (1) Existing transportation systems—General rule Except as provided in paragraph (2), all serv- ice performed in the employ of a State or po- litical subdivision in connection with its oper- ation of a public transportation system shall constitute covered transportation service if any part of the transportation system was ac- quired from private ownership after 1936 and prior to 1951. (2) Existing transportation systems—Cases in which no transportation employees, or only certain employees, are covered Service performed in the employ of a State or political subdivision in connection with the operation of its public transportation system shall not constitute covered transportation service if— (A) any part of the transportation system was acquired from private ownership after 1936 and prior to 1951, and substantially all service in connection with the operation of the transportation system was, on December 31, 1950, covered under a general retirement system providing benefits which, by reason of a provision of the State constitution deal- ing specifically with retirement systems of the State or political subdivisions thereof, cannot be diminished or impaired; or (B) no part of the transportation system operated by the State or political subdivi- sion on December 31, 1950, was acquired from private ownership after 1936 and prior to 1951; except that if such State or political subdivi- sion makes an acquisition after 1950 from pri- vate ownership of any part of its transpor- tation system, then, in the case of any em- ployee who— (C) became an employee of such State or political subdivision in connection with and at the time of its acquisition after 1950 of such part, and (D) prior to such acquisition rendered serv- ice in employment (including as employ- ment service covered by an agreement under section 218 of the Social Security Act) in connection with the operation of such part of the transportation system acquired by the State or political subdivision, the service of such employee in connection with the operation of the transportation sys- tem shall constitute covered transportation service, commencing with the first day of the third calendar quarter following the calendar quarter in which the acquisition of such part took place, unless on such first day such serv- ice of such employee is covered by a general retirement system which does not, with re- spect to such employee, contain special provi- sions applicable only to employees described in subparagraph (C). (3) Transportation systems acquired after 1950 All service performed in the employ of a State or political subdivision thereof in con- nection with its operation of a public trans- portation system shall constitute covered transportation service if the transportation system was not operated by the State or polit- ical subdivision prior to 1951 and, at the time of its first acquisition (after 1950) from private ownership of any part of its transportation system, the State or political subdivision did not have a general retirement system covering substantially all service performed in connec- tion with the operation of the transportation system. (4) Definitions For purposes of this subsection— (A) The term ‘‘general retirement system’’ means any pension, annuity, retirement, or similar fund or system established by a State or by a political subdivision thereof for employees of the State, political subdivi- sion, or both; but such term shall not in- clude such a fund or system which covers only service performed in positions con- nected with the operation of its public trans- portation system. (B) A transportation system or a part thereof shall be considered to have been ac- quired by a State or political subdivision from private ownership if prior to the acqui- sition service performed by employees in connection with the operation of the system Page 2702 TITLE 26—INTERNAL REVENUE CODE § 3121 or part thereof acquired constituted employ- ment under this chapter or subchapter A of chapter 9 of the Internal Revenue Code of 1939 or was covered by an agreement made pursuant to section 218 of the Social Secu- rity Act and some of such employees became employees of the State or political subdivi- sion in connection with and at the time of such acquisition. (C) The term ‘‘political subdivision’’ in- cludes an instrumentality of— (i) a State, (ii) one or more political subdivisions of a State, or (iii) a State and one or more of its polit- ical subdivisions. [(k) Repealed. Pub. L. 98–21, title I, § 102(b)(2), Apr. 20, 1983, 97 Stat. 71] (l) Agreements entered into by American employ- ers with respect to foreign affiliates (1) Agreement with respect to certain employ- ees of foreign affiliate The Secretary shall, at the American em- ployer’s request, enter into an agreement (in such manner and form as may be prescribed by the Secretary) with any American employer (as defined in subsection (h)) who desires to have the insurance system established by title II of the Social Security Act extended to serv- ice performed outside the United States in the employ of any 1 or more of such employer’s foreign affiliates (as defined in paragraph (6)) by all employees who are citizens or residents of the United States, except that the agree- ment shall not apply to any service performed by, or remuneration paid to, an employee if such service or remuneration would be ex- cluded from the term ‘‘employment’’ or ‘‘wages’’, as defined in this section, had the service been performed in the United States. Such agreement may be amended at any time so as to be made applicable, in the same man- ner and under the same conditions, with re- spect to any other foreign affiliate of such American employer. Such agreement shall be applicable with respect to citizens or residents of the United States who, on or after the effec- tive date of the agreement, are employees of and perform services outside the United States for any foreign affiliate specified in the agree- ment. Such agreement shall provide— (A) that the American employer shall pay to the Secretary, at such time or times as the Secretary may by regulations prescribe, amounts equivalent to the sum of the taxes which would be imposed by sections 3101 and 3111 (including amounts equivalent to the in- terest, additions to the taxes, additional amounts, and penalties which would be ap- plicable) with respect to the remuneration which would be wages if the services covered by the agreement constituted employment as defined in this section; and (B) that the American employer will com- ply with such regulations relating to pay- ments and reports as the Secretary may pre- scribe to carry out the purposes of this sub- section. (2) Effective period of agreement An agreement entered into pursuant to para- graph (1) shall be in effect for the period begin- ning with the first day of the calendar quarter in which such agreement is entered into or the first day of the succeeding calendar quarter, as may be specified in the agreement; except that in case such agreement is amended to in- clude the services performed for any other af- filiate and such amendment is executed after the first month following the first calendar quarter for which the agreement is in effect, the agreement shall be in effect with respect to service performed for such other affiliate only after the calendar quarter in which such amendment is executed. Notwithstanding any other provision of this subsection, the period for which any such agreement is effective with respect to any foreign entity shall terminate at the end of any calendar quarter in which the foreign entity, at any time in such quar- ter, ceases to be a foreign affiliate as defined in paragraph (6). (3) No termination of agreement No agreement under this subsection may be terminated, either in its entirety or with re- spect to any foreign affiliate, on or after June 15, 1989. (4) Deposits in trust funds For purposes of section 201 of the Social Se- curity Act, relating to appropriations to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insur- ance Trust Fund, such remuneration— (A) paid for services covered by an agree- ment entered into pursuant to paragraph (1) as would be wages if the services constituted employment, and (B) as is reported to the Secretary pursu- ant to the provisions of such agreement or of the regulations issued under this subsection, shall be considered wages subject to the taxes imposed by this chapter. (5) Overpayments and underpayments (A) If more or less than the correct amount due under an agreement entered into pursuant to this subsection is paid with respect to any payment of remuneration, proper adjustments with respect to the amounts due under such agreement shall be made, without interest, in such manner and at such times as may be re- quired by regulations prescribed by the Sec- retary. (B) If an overpayment cannot be adjusted under subparagraph (A), the amount thereof shall be paid by the Secretary, through the Fiscal Service of the Treasury Department, but only if a claim for such overpayment is filed with the Secretary within two years from the time such overpayment was made. (6) Foreign affiliate defined For purposes of this subsection and section 210(a) of the Social Security Act— (A) In general A foreign affiliate of an American em- ployer is any foreign entity in which such American employer has not less than a 10- percent interest. Page 2703 TITLE 26—INTERNAL REVENUE CODE § 3121 2 See Change of Name note below. (B) Determination of 10-percent interest For purposes of subparagraph (A), an American employer has a 10-percent interest in any entity if such employer has such an interest directly (or through one or more en- tities)— (i) in the case of a corporation, in the voting stock thereof, and (ii) in the case of any other entity, in the profits thereof. (7) American employer as separate entity Each American employer which enters into an agreement pursuant to paragraph (1) of this subsection shall, for purposes of this sub- section and section 6413(c)(2)(C), relating to special refunds in the case of employees of cer- tain foreign entities, be considered an em- ployer in its capacity as a party to such agree- ment separate and distinct from its identity as a person employing individuals on its own account. (8) Regulations Regulations of the Secretary to carry out the purposes of this subsection shall be de- signed to make the requirements imposed on American employers with respect to services covered by an agreement entered into pursu- ant to this subsection the same, so far as prac- ticable, as those imposed upon employers pur- suant to this title with respect to the taxes imposed by this chapter. (m) Service in the uniformed services For purposes of this chapter— (1) Inclusion of service The term ‘‘employment’’ shall, notwith- standing the provisions of subsection (b) of this section, include— (A) service performed by an individual as a member of a uniformed service on active duty, but such term shall not include any such service which is performed while on leave without pay, and (B) service performed by an individual as a member of a uniformed service on inactive duty training. (2) Active duty The term ‘‘active duty’’ means ‘‘active duty’’ as described in paragraph (21) of section 101 of title 38, United States Code, except that it shall also include ‘‘active duty for training’’ as described in paragraph (22) of such section. (3) Inactive duty training The term ‘‘inactive duty training’’ means ‘‘inactive duty training’’ as described in para- graph (23) of such section 101. (n) Member of a uniformed service For purposes of this chapter, the term ‘‘mem- ber of a uniformed service’’ means any person appointed, enlisted, or inducted in a component of the Army, Navy, Air Force, Marine Corps, or Coast Guard (including a reserve component as defined in section 101(27) of title 38, United States Code), or in one of those services without specification of component, or as a commis- sioned officer of the Coast and Geodetic Survey, the National Oceanic and Atmospheric Adminis- tration Corps, or the Regular or Reserve Corps 2 of the Public Health Service, and any person serving in the Army or Air Force under call or conscription. The term includes— (1) a retired member of any of those services; (2) a member of the Fleet Reserve or Fleet Marine Corps Reserve; (3) a cadet at the United States Military Academy, a midshipman at the United States Naval Academy, and a cadet at the United States Coast Guard Academy or United States Air Force Academy; (4) a member of the Reserve Officers’ Train- ing Corps, the Naval Reserve Officers’ Train- ing Corps, or the Air Force Reserve Officers’ Training Corps, when ordered to annual train- ing duty for fourteen days or more, and while performing authorized travel to and from that duty; and (5) any person while en route to or from, or at, a place for final acceptance or for entry upon active duty in the military, naval, or air service— (A) who has been provisionally accepted for such duty; or (B) who, under the Military Selective Service Act, has been selected for active military, naval, or air service; and has been ordered or directed to proceed to such place. The term does not include a temporary member of the Coast Guard Reserve. (o) Crew leader For purposes of this chapter, the term ‘‘crew leader’’ means an individual who furnishes indi- viduals to perform agricultural labor for an- other person, if such individual pays (either on his own behalf or on behalf of such person) the individuals so furnished by him for the agricul- tural labor performed by them and if such indi- vidual has not entered into a written agreement with such person whereby such individual has been designated as an employee of such person; and such individuals furnished by the crew lead- er to perform agricultural labor for another per- son shall be deemed to be the employees of such crew leader. For purposes of this chapter and chapter 2, a crew leader shall, with respect to service performed in furnishing individuals to perform agricultural labor for another person and service performed as a member of the crew, be deemed not to be an employee of such other person. (p) Peace Corps volunteer service For purposes of this chapter, the term ‘‘em- ployment’’ shall, notwithstanding the provisions of subsection (b) of this section, include service performed by an individual as a volunteer or volunteer leader within the meaning of the Peace Corps Act. (q) Tips included for both employee and em- ployer taxes For purposes of this chapter, tips received by an employee in the course of his employment shall be considered remuneration for such em- ployment (and deemed to have been paid by the Page 2704 TITLE 26—INTERNAL REVENUE CODE § 3121 employer for purposes of subsections (a) and (b) of section 3111). Such remuneration shall be deemed to be paid at the time a written state- ment including such tips is furnished to the em- ployer pursuant to section 6053(a) or (if no state- ment including such tips is so furnished) at the time received; except that, in determining the employer’s liability in connection with the taxes imposed by section 3111 with respect to such tips in any case where no statement includ- ing such tips was so furnished (or to the extent that the statement so furnished was inaccurate or incomplete), such remuneration shall be deemed for purposes of subtitle F to be paid on the date on which notice and demand for such taxes is made to the employer by the Secretary. (r) Election of coverage by religious orders (1) Certificate of election by order A religious order whose members are re- quired to take a vow of poverty, or any auton- omous subdivision of such order, may file a certificate (in such form and manner, and with such official, as may be prescribed by regula- tions under this chapter) electing to have the insurance system established by title II of the Social Security Act extended to services per- formed by its members in the exercise of du- ties required by such order or such subdivision thereof. Such certificate of election shall pro- vide that— (A) such election of coverage by such order or subdivision shall be irrevocable; (B) such election shall apply to all current and future members of such order, or in the case of a subdivision thereof to all current and future members of such order who be- long to such subdivision; (C) all services performed by a member of such an order or subdivision in the exercise of duties required by such order or subdivi- sion shall be deemed to have been performed by such member as an employee of such order or subdivision; and (D) the wages of each member, upon which such order or subdivision shall pay the taxes imposed by sections 3101 and 3111, will be de- termined as provided in subsection (i)(4). (2) Definition of member For purposes of this subsection, a member of a religious order means any individual who is subject to a vow of poverty as a member of such order and who performs tasks usually re- quired (and to the extent usually required) of an active member of such order and who is not considered retired because of old age or total disability. (3) Effective date for election (A) A certificate of election of coverage shall be in effect, for purposes of subsection (b)(8) and for purposes of section 210(a)(8) of the So- cial Security Act, for the period beginning with whichever of the following may be des- ignated by the order or subdivision thereof: (i) the first day of the calendar quarter in which the certificate is filed, (ii) the first day of the calendar quarter succeeding such quarter, or (iii) the first day of any calendar quarter preceding the calendar quarter in which the certificate is filed, except that such date may not be earlier than the first day of the twentieth calendar quarter preceding the quarter in which such certificate is filed. Whenever a date is designated under clause (iii), the election shall apply to services per- formed before the quarter in which the certifi- cate is filed only if the member performing such services was a member at the time such services were performed and is living on the first day of the quarter in which such certifi- cate is filed. (B) If a certificate of election filed pursuant to this subsection is effective for one or more calendar quarters prior to the quarter in which such certificate is filed, then— (i) for purposes of computing interest and for purposes of section 6651 (relating to addi- tion to tax for failure to file tax return), the due date for the return and payment of the tax for such prior calendar quarters result- ing from the filing of such certificate shall be the last day of the calendar month fol- lowing the calendar quarter in which the certificate is filed; and (ii) the statutory period for the assessment of such tax shall not expire before the expi- ration of 3 years from such due date. [(4) Repealed. Pub. L. 98–21, title I, § 102(b)(3)(B), Apr. 20, 1983, 97 Stat. 71] (s) Concurrent employment by two or more em- ployers For purposes of sections 3102, 3111, and 3121(a)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations. [(t) Repealed. Pub. L. 100–203, title IX, § 9006(b)(2), Dec. 22, 1987, 101 Stat. 1330–289] (u) Application of hospital insurance tax to Fed- eral, State, and local employment (1) Federal employment For purposes of the taxes imposed by sec- tions 3101(b) and 3111(b), subsection (b) shall be applied without regard to paragraph (5) there- of. (2) State and local employment For purposes of the taxes imposed by sec- tions 3101(b) and 3111(b)— (A) In general Except as provided in subparagraphs (B) and (C), subsection (b) shall be applied with- out regard to paragraph (7) thereof. (B) Exception for certain services Service shall not be treated as employ- ment by reason of subparagraph (A) if— (i) the service is included under an agree- ment under section 218 of the Social Secu- rity Act, or Page 2705 TITLE 26—INTERNAL REVENUE CODE § 3121 (ii) the service is performed— (I) by an individual who is employed by a State or political subdivision thereof to relieve him from unemployment, (II) in a hospital, home, or other insti- tution by a patient or inmate thereof as an employee of a State or political sub- division thereof or of the District of Co- lumbia, (III) by an individual, as an employee of a State or political subdivision there- of or of the District of Columbia, serving on a temporary basis in case of fire, storm, snow, earthquake, flood or other similar emergency, (IV) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other stu- dent employees of hospitals of the Dis- trict of Columbia Government), other than as a medical or dental intern or a medical or dental resident in training, (V) by an election official or election worker if the remuneration paid in a cal- endar year for such service is less than $1,000 with respect to service performed during any calendar year commencing on or after January 1, 1995, ending on or before December 31, 1999, and the ad- justed amount determined under section 218(c)(8)(B) of the Social Security Act for any calendar year commencing on or after January 1, 2000, with respect to service performed during such calendar year, or (VI) by an individual in a position de- scribed in section 1402(c)(2)(E). As used in this subparagraph, the terms ‘‘State’’ and ‘‘political subdivision’’ have the meanings given those terms in section 218(b) of the Social Security Act. (C) Exception for current employment which continues Service performed for an employer shall not be treated as employment by reason of subparagraph (A) if— (i) such service would be excluded from the term ‘‘employment’’ for purposes of this chapter if subparagraph (A) did not apply; (ii) such service is performed by an indi- vidual— (I) who was performing substantial and regular service for remuneration for that employer before April 1, 1986, (II) who is a bona fide employee of that employer on March 31, 1986, and (III) whose employment relationship with that employer was not entered into for purposes of meeting the requirements of this subparagraph; and (iii) the employment relationship with that employer has not been terminated after March 31, 1986. (D) Treatment of agencies and instrumental- ities For purposes of subparagraph (C), under regulations— (i) All agencies and instrumentalities of a State (as defined in section 218(b) of the Social Security Act) or of the District of Columbia shall be treated as a single em- ployer. (ii) All agencies and instrumentalities of a political subdivision of a State (as so de- fined) shall be treated as a single employer and shall not be treated as described in clause (i). (3) Medicare qualified government employment For purposes of this chapter, the term ‘‘medicare qualified government employment’’ means service which— (A) is employment (as defined in sub- section (b)) with the application of para- graphs (1) and (2), but (B) would not be employment (as so de- fined) without the application of such para- graphs. (v) Treatment of certain deferred compensation and salary reduction arrangements (1) Certain employer contributions treated as wages Nothing in any paragraph of subsection (a) (other than paragraph (1)) shall exclude from the term ‘‘wages’’— (A) any employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) to the extent not included in gross income by reason of sec- tion 402(e)(3) or consisting of designated Roth contributions (as defined in section 402A(c)), or (B) any amount treated as an employer contribution under section 414(h)(2) where the pickup referred to in such section is pur- suant to a salary reduction agreement (whether evidenced by a written instrument or otherwise). (2) Treatment of certain nonqualified deferred compensation plans (A) In general Any amount deferred under a nonqualified deferred compensation plan shall be taken into account for purposes of this chapter as of the later of— (i) when the services are performed, or (ii) when there is no substantial risk of forfeiture of the rights to such amount. The preceding sentence shall not apply to any excess parachute payment (as defined in section 280G(b)) or to any specified stock compensation (as defined in section 4985) on which tax is imposed by section 4985. (B) Taxed only once Any amount taken into account as wages by reason of subparagraph (A) (and the in- come attributable thereto) shall not there- after be treated as wages for purposes of this chapter. (C) Nonqualified deferred compensation plan For purposes of this paragraph, the term ‘‘nonqualified deferred compensation plan’’ means any plan or other arrangement for de- ferral of compensation other than a plan de- scribed in subsection (a)(5). Page 2706 TITLE 26—INTERNAL REVENUE CODE § 3121 (3) Exempt governmental deferred compensa- tion plan For purposes of subsection (a)(5), the term ‘‘exempt governmental deferred compensation plan’’ means any plan providing for deferral of compensation established and maintained for its employees by the United States, by a State or political subdivision thereof, or by an agen- cy or instrumentality of any of the foregoing. Such term shall not include— (A) any plan to which section 83, 402(b), 403(c), 457(a), or 457(f)(1) applies, (B) any annuity contract described in sec- tion 403(b), and (C) the Thrift Savings Fund (within the meaning of subchapter III of chapter 84 of title 5, United States Code). (w) Exemption of churches and qualified church- controlled organizations (1) General rule Any church or qualified church-controlled organization (as defined in paragraph (3)) may make an election within the time period de- scribed in paragraph (2), in accordance with such procedures as the Secretary determines to be appropriate, that services performed in the employ of such church or organization shall be excluded from employment for pur- poses of title II of the Social Security Act and this chapter. An election may be made under this subsection only if the church or qualified church-controlled organization states that such church or organization is opposed for re- ligious reasons to the payment of the tax im- posed under section 3111. (2) Timing and duration of election An election under this subsection must be made prior to the first date, more than 90 days after July 18, 1984, on which a quarterly em- ployment tax return for the tax imposed under section 3111 is due, or would be due but for the election, from such church or organization. An election under this subsection shall apply to current and future employees, and shall apply to service performed after December 31, 1983. The election may be revoked by the church or organization under regulations prescribed by the Secretary. The election shall be revoked by the Secretary if such church or organiza- tion fails to furnish the information required under section 6051 to the Secretary for a pe- riod of 2 years or more with respect to remu- neration paid for such services by such church or organization, and, upon request by the Sec- retary, fails to furnish all such previously un- furnished information for the period covered by the election. Any revocation under the pre- ceding sentence shall apply retroactively to the beginning of the 2-year period for which the information was not furnished. (3) Definitions (A) For purposes of this subsection, the term ‘‘church’’ means a church, a convention or as- sociation of churches, or an elementary or sec- ondary school which is controlled, operated, or principally supported by a church or by a con- vention or association of churches. (B) For purposes of this subsection, the term ‘‘qualified church-controlled organization’’ means any church-controlled tax-exempt orga- nization described in section 501(c)(3), other than an organization which— (i) offers goods, services, or facilities for sale, other than on an incidental basis, to the general public, other than goods, serv- ices, or facilities which are sold at a nominal charge which is substantially less than the cost of providing such goods, services, or fa- cilities; and (ii) normally receives more than 25 percent of its support from either (I) governmental sources, or (II) receipts from admissions, sales of merchandise, performance of serv- ices, or furnishing of facilities, in activities which are not unrelated trades or businesses, or both. (x) Applicable dollar threshold For purposes of subsection (a)(7)(B), the term ‘‘applicable dollar threshold’’ means $1,000. In the case of calendar years after 1995, the Com- missioner of Social Security shall adjust such $1,000 amount at the same time and in the same manner as under section 215(a)(1)(B)(ii) of the Social Security Act with respect to the amounts referred to in section 215(a)(1)(B)(i) of such Act, except that, for purposes of this paragraph, 1993 shall be substituted for the calendar year re- ferred to in section 215(a)(1)(B)(ii)(II) of such Act. If any amount as adjusted under the pre- ceding sentence is not a multiple of $100, such amount shall be rounded to the next lowest mul- tiple of $100. (y) Service in the employ of international organi- zations by certain transferred Federal em- ployees (1) In general For purposes of this chapter, service per- formed in the employ of an international orga- nization by an individual pursuant to a trans- fer of such individual to such international or- ganization pursuant to section 3582 of title 5, United States Code, shall constitute ‘‘employ- ment’’ if— (A) immediately before such transfer, such individual performed service with a Federal agency which constituted ‘‘employment’’ under subsection (b) for purposes of the taxes imposed by sections 3101(a) and 3111(a), and (B) such individual would be entitled, upon separation from such international organiza- tion and proper application, to reemploy- ment with such Federal agency under such section 3582. (2) Definitions For purposes of this subsection— (A) Federal agency The term ‘‘Federal agency’’ means an agency, as defined in section 3581(1) of title 5, United States Code. (B) International organization The term ‘‘international organization’’ has the meaning provided such term by section 3581(3) of title 5, United States Code. Page 2707 TITLE 26—INTERNAL REVENUE CODE § 3121 (z) Treatment of certain foreign persons as American employers (1) In general If any employee of a foreign person is per- forming services in connection with a contract between the United States Government (or any instrumentality thereof) and any member of any domestically controlled group of enti- ties which includes such foreign person, such foreign person shall be treated for purposes of this chapter as an American employer with re- spect to such services performed by such em- ployee. (2) Domestically controlled group of entities For purposes of this subsection— (A) In general The term ‘‘domestically controlled group of entities’’ means a controlled group of en- tities the common parent of which is a do- mestic corporation. (B) Controlled group of entities The term ‘‘controlled group of entities’’ means a controlled group of corporations as defined in section 1563(a)(1), except that— (i) ‘‘more than 50 percent’’ shall be sub- stituted for ‘‘at least 80 percent’’ each place it appears therein, and (ii) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563. A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the mean- ing of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sen- tence). (3) Liability of common parent In the case of a foreign person who is a mem- ber of any domestically controlled group of en- tities, the common parent of such group shall be jointly and severally liable for any tax under this chapter for which such foreign per- son is liable by reason of this subsection, and for any penalty imposed on such person by this title with respect to any failure to pay such tax or to file any return or statement with respect to such tax or wages subject to such tax. No deduction shall be allowed under this title for any liability imposed by the pre- ceding sentence. (4) Provisions preventing double taxation (A) Agreements Paragraph (1) shall not apply to any serv- ices which are covered by an agreement under subsection (l). (B) Equivalent foreign taxation Paragraph (1) shall not apply to any serv- ices if the employer establishes to the satis- faction of the Secretary that the remunera- tion paid by such employer for such services is subject to a tax imposed by a foreign country which is substantially equivalent to the taxes imposed by this chapter. (5) Cross reference For relief from taxes in cases covered by certain international agreements, see sections 3101(c) and 3111(c). (Aug. 16, 1954, ch. 736, 68A Stat. 417; Sept. 1, 1954, ch. 1206, title II, §§ 204(a), (b), 205(a)–(e), 206(a), 207, 209, 68 Stat. 1091–1094; Aug. 1, 1956, ch. 836, title I, §§ 103(j), 121(d), title II, §§ 201(b)–(d), (e)(1), (h)(1), (2), (j)–(l), 70 Stat. 824, 839–841, 843; Aug. 1, 1956, ch. 837, title IV, §§ 410, 411(a), 70 Stat. 878; Pub. L. 85–840, title IV, §§ 402(b), 404(a), 405(a), (b), Aug. 28, 1958, 72 Stat. 1042, 1044–1046; Pub. L. 85–866, title I, § 69, Sept. 2, 1958, 72 Stat. 1659; Pub. L. 86–70, § 22(a), June 25, 1959, 73 Stat. 146; Pub. L. 86–168, title I, § 104(h), title II, § 202(a), Aug. 18, 1959, 73 Stat. 387, 389; Pub. L. 86–624, § 18(c), July 12, 1960, 74 Stat. 416; Pub. L. 86–778, title I, §§ 103(n)–(p), 104(b), 105(a), Sept. 13, 1960, 74 Stat. 938, 939, 942; Pub. L. 87–256, § 110(e)(1), Sept. 21, 1961, 75 Stat. 536; Pub. L. 87–293, title II, § 202(a)(1), (2), Sept. 22, 1961, 75 Stat. 626; Pub. L. 88–272, title II, § 220(c)(2), Feb. 26, 1964, 78 Stat. 62; Pub. L. 88–650, § 4(b), Oct. 13, 1964, 78 Stat. 1077; Pub. L. 89–97, title III, §§ 311(b)(4), (5), 313(c)(3), (4), 316(a)(1), (b), 317(b), 320(b)(2), July 30, 1965, 79 Stat. 381, 383, 386, 388, 393; Pub. L. 90–248, title I, §§ 108(b)(2), 123(b), title IV, § 403(i), title V, § 504(a), Jan. 2, 1968, 81 Stat. 835, 845, 932, 934; Pub. L. 91–172, title IX, § 943(c)(1)–(3), Dec. 30, 1969, 83 Stat. 728; Pub. L. 92–5, title II, § 203(b)(2), Mar. 17, 1971, 85 Stat. 11; Pub. L. 92–336, title II, § 203(b)(2), July 1, 1972, 86 Stat. 419; Pub. L. 92–603, title I, §§ 104(i), 122(b), 123(a)(2), (b), (c)(2), 128(b), 129(a)(2), 138(b), Oct. 30, 1972, 86 Stat. 1341, 1354, 1356, 1358, 1359, 1365; Pub. L. 93–66, title II, § 203(b)(2), (d), July 9, 1973, 87 Stat. 153; Pub. L. 93–233, § 5(b)(2), (d), Dec. 31, 1973, 87 Stat. 954; Pub. L. 94–455, title XII, § 1207(e)(1)(A), title XIX, §§ 1903(a)(3), 1906(b)(13)(A), (C), Oct. 4, 1976, 90 Stat. 1706, 1807, 1834; Pub. L. 94–563, § 1(b), (c), Oct. 19, 1976, 90 Stat. 2655; Pub. L. 95–216, title III, §§ 312(a), (b), (d), (f), (g), 314(a), 315(a), 356(a)–(d), Dec. 20, 1977, 91 Stat. 1532–1536, 1555; Pub. L. 95–472, § 3(b), Oct. 17, 1978, 92 Stat. 1333; Pub. L. 95–600, title I, § 164(b)(3), Nov. 6, 1978, 92 Stat. 2814; Pub. L. 96–222, title I, § 101(a)(10)(B)(i), Apr. 1, 1980, 94 Stat. 201; Pub. L. 96–499, title XI, § 1141(a)(1), Dec. 5, 1980, 94 Stat. 2693; Pub. L. 97–34, title I, § 124(e)(2)(A), Aug. 13, 1981, 95 Stat. 200; Pub. L. 97–123, § 3(b), Dec. 29, 1981, 95 Stat. 1662; Pub. L. 97–248, title II, § 278(a)(1), Sept. 3, 1982, 96 Stat. 559; Pub. L. 98–21, title I, §§ 101(b), (c)(2), 102(b), title III, §§ 321(a), (e)(1), 322(a)(2), 323(a)(1), 324(a), 327(a)(1), (b)(1), 328(a), Apr. 20, 1983, 97 Stat. 69, 70, 118, 119, 121, 122, 126–128; Pub. L. 98–369, div. A, title I, § 67(c), title IV, § 491(d)(36), title V, § 531(d)(1)(A), div. B, title VI, §§ 2601(b), 2603(a)(2), (b), 2661(o)(3), 2663(i), (j)(5)(C), July 18, 1984, 98 Stat. 587, 851, 884, 1124, 1128, 1159, 1169, 1171; Pub. L. 99–221, § 3(b), Dec. 26, 1985, 99 Stat. 1735; Pub. L. 99–272, title XII, § 12112(b), title XIII, §§ 13205(a)(1), 13303(c)(2), Apr. 7, 1986, 100 Stat. 288, 313, 327; Pub. L. 99–335, title III, § 304(b), June 6, 1986, 100 Stat. 606; Pub. L. 99–509, title IX, § 9002(b)(1)(A), (2)(A), Oct. 21, 1986, 100 Stat. 1971; Pub. L. 99–514, title I, § 122(e)(1), title XI, §§ 1108(g)(7), 1147(b), 1151(d)(2)(A), title XVIII, §§ 1882(c), 1883(a)(11)(B), 1895(b)(18)(A), 1899A(38)–(40), Oct. 22, 1986, 100 Stat. 2112, 2435, 2494, 2505, 2915, 2916, 2935, 2960; Page 2708 TITLE 26—INTERNAL REVENUE CODE § 3121 Pub. L. 100–203, title IX, §§ 9001(b), 9002(b), 9003(a)(2), 9004(b), 9005(b), 9006(a), (b)(2), 9023(d), Dec. 22, 1987, 101 Stat. 1330–286 to 1330–289, 1330–296; Pub. L. 100–647, title I, §§ 1001(d)(2)(C)(i), (g)(4)(B)(i), 1011(e)(8), 1011B(a)(22)(A), (23)(A), 1018(r)(2)(A), (u)(35), title III, § 3043(c)(2), title VIII, §§ 8015(b)(2), (c)(2), 8016(a)(3)(A), (4)(A), (C), 8017(b), Nov. 10, 1988, 102 Stat. 3351, 3352, 3461, 3485, 3486, 3586, 3592, 3642, 3791–3793; Pub. L. 101–140, title II, § 203(a)(2), Nov. 8, 1989, 103 Stat. 830; Pub. L. 101–239, title X, § 10201(a), (b)(3), Dec. 19, 1989, 103 Stat. 2472; Pub. L. 101–508, title XI, §§ 11331(a), 11332(b), Nov. 5, 1990, 104 Stat. 1388–467, 1388–469; Pub. L. 101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117; Pub. L. 102–318, title V, § 521(b)(34), July 3, 1992, 106 Stat. 312; Pub. L. 103–66, title XIII, § 13207(a), Aug. 10, 1993, 107 Stat. 467; Pub. L. 103–178, title II, § 204(c), Dec. 3, 1993, 107 Stat. 2033; Pub. L. 103–296, title I, § 108(h)(2), title III, §§ 303(a)(2), (b)(2), 319(a)(1), (5), 320(a)(1)(C), Aug. 15, 1994, 108 Stat. 1487, 1519, 1533–1535; Pub. L. 103–387, § 2(a)(1)(A)–(C), Oct. 22, 1994, 108 Stat. 4071; Pub. L. 104–188, title I, §§ 1116(a)(1)(A), (B), 1421(b)(8)(A), 1458(b)(1), Aug. 20, 1996, 110 Stat. 1762, 1798, 1819; Pub. L. 105–33, title XI, § 11246(b)(2)(A), as added Pub. L. 105–277, div. A, § 101(h) [title VIII, § 802(a)(2)], Oct. 21, 1998, 112 Stat. 2681–480, 2681–532; Pub. L. 105–61, title VI, § 642(d)(2), Oct. 10, 1997, 111 Stat. 1319; Pub. L. 105–206, title VI, § 6023(13), July 22, 1998, 112 Stat. 825; Pub. L. 106–554, § 1(a)(7) [title III, § 319(15)], Dec. 21, 2000, 114 Stat. 2763, 2763A–647; Pub. L. 108–121, title I, § 106(b)(2), Nov. 11, 2003, 117 Stat. 1339; Pub. L. 108–203, title IV, § 423(a), (c), Mar. 2, 2004, 118 Stat. 536; Pub. L. 108–357, title II, § 251(a)(1)(A), title III, § 320(b)(1), title VIII, § 802(c)(1), Oct. 22, 2004, 118 Stat. 1458, 1473, 1568; Pub. L. 108–375, div. A, title V, § 585(b)(2)(B), Oct. 28, 2004, 118 Stat. 1932; Pub. L. 109–280, title VIII, § 854(c)(8), Aug. 17, 2006, 120 Stat. 1018; Pub. L. 110–172, § 8(a)(2), Dec. 29, 2007, 121 Stat. 2483; Pub. L. 110–245, title I, § 115(a)(1), title III, § 302(a), June 17, 2008, 122 Stat. 1636, 1647; Pub. L. 110–458, title I, § 108(k)(1), Dec. 23, 2008, 122 Stat. 5110; Pub. L. 113–295, div. A, title II, § 221(a)(19)(B)(iv), (99)(C)(i), Dec. 19, 2014, 128 Stat. 4040, 4052; Pub. L. 115–141, div. U, title IV, § 401(a)(209), (210), (325)(A), Mar. 23, 2018, 132 Stat. 1194, 1199; Pub. L. 115–243, § 2(b)(2), Sept. 20, 2018, 132 Stat. 2895; Pub. L. 116–94, div. O, title III, § 301(c), Dec. 20, 2019, 133 Stat. 3175; Pub. L. 117–328, div. T, title VII, § 702(b)(1), Dec. 29, 2022, 136 Stat. 5404.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsecs. (a)(1), (15), (b), (d)(4), (j)(2)(D), (4)(B), (l)(1), (4), (6), (r)(3)(A), (u), (w)(1), and (x), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Act is classified generally to sub- chapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. Sections 201, 210, 215, 218, 218A, 223, 230, and 233 of the Act are classified to sec- tions 401, 410, 415, 418, 418a, 423, 430, and 433, respec- tively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. Section 3(2)(B)(ii) of the Employee Retirement In- come Security Act of 1974, referred to in subsec. (a)(5)(F), is classified to section 1002(2)(B)(ii) of Title 29, Labor. Section 104(e)(2) of the Indian Self-Determination Act, referred to in subsec. (b)(5)(B)(i)(V), is classified to section 5323(e)(2) of Title 25, Indians. Level V of the Executive Schedule, referred to in sub- sec. (b)(5)(D)(iii), is set out in section 5316 of Title 5, Government Organization and Employees. Section 301 of the Federal Employees’ Retirement System Act of 1986, referred to in subsec. (b)(5)(H)(i), is section 301 of Pub. L. 99–335, which is set out as a note under section 8331 of Title 5, Government Organization and Employees. The Federal Employees’ Retirement System Open Enrollment Act of 1997, referred to in subsec. (b)(5)(H)(i), is section 642 of Pub. L. 105–61, title VI, Oct. 10, 1997, 111 Stat. 1318, which is classified principally to a note under section 8331 of Title 5, Government Orga- nization and Employees. For complete classification of this Act to the Code, see Tables. The Foreign Service Act of 1980, referred to in subsec. (b)(5)(H)(ii), is Pub. L. 96–465, Oct. 17, 1980, 94 Stat. 2071. Subchapter II of chapter 8 of title I of the Act is classi- fied generally to part II (§ 4071 et seq.) of subchapter VIII of chapter 52 of Title 22, Foreign Relations and Intercourse. Section 860 of the Act is classified to sec- tion 4071i of Title 22. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 3901 of Title 22 and Tables. Section 101(a)(15) of the Immigration and Nationality Act, referred to in subsec. (b)(18), (19), is classified to section 1101(a)(15) of Title 8, Aliens and Nationality. Section 15(g) of the Agricultural Marketing Act, re- ferred to in subsec. (g)(3), is classified to section 1141j of Title 12, Banks and Banking. The Peace Corps Act, referred to in subsecs. (i)(3) and (p), is Pub. L. 87–293, title I, Sept. 22, 1961, 75 Stat. 612, which is classified principally to chapter 34 (§ 2501 et seq.) of Title 22, Foreign Relations and Intercourse. Sections 5 and 6 of the Peace Corps Act are classified to sections 2504 and 2505 of Title 22. For complete clas- sification of this Act to the Code, see Short Title note set out under section 2501 of Title 22 and Tables. Chapter 9 of the Internal Revenue Code of 1939, re- ferred to in subsec. (j)(4)(B), was comprised of sections 1400 to 1636 of former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title. See also section 7851(a)(3) of this title for applicability of chapter 9 of former Title 26. See also section 7851(e) of this title for provision that references in the 1986 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provi- sion of the 1986 Code, which is then applicable. The Military Selective Service Act, referred to in subsec. (n)(5)(B), is act June 24, 1948, ch. 625, 62 Stat. 604, which is classified principally to chapter 49 (§ 3801 et seq.) of Title 50, War and National Defense. For com- plete classification of this Act to the Code, see Tables. CONSTITUTIONALITY For information regarding constitutionality of cer- tain provisions of this section, see note under section 410 of Title 42, The Public Health and Welfare. AMENDMENTS 2022—Subsec. (b)(5)(E). Pub. L. 117–328 inserted ‘‘or special trial judge’’ before ‘‘of the United States Tax Court’’. 2019—Subsec. (a)(23). Pub. L. 116–94 substituted ‘‘sec- tion 139B(a)’’ for ‘‘139B(b)’’. 2018—Subsec. (b)(5)(B)(i)(V). Pub. L. 115–141, § 401(a)(209), substituted ‘‘section 104(e)(2)’’ for ‘‘section 105(e)(2)’’. Subsec. (b)(5)(E). Pub. L. 115–141, § 401(a)(325)(A), sub- stituted ‘‘United States Court of Federal Claims’’ for ‘‘United States Claims Court’’. Subsec. (b)(5)(H)(i). Pub. L. 115–141, § 401(a)(210), in- serted comma after ‘‘1997’’. Subsec. (b)(22). Pub. L. 115–243, § 2(b)(2)(A), added par. (22). Subsec. (d)(4). Pub. L. 115–243, § 2(b)(2)(B), inserted ‘‘or 218A’’ after ‘‘section 218’’. 2014—Subsec. (a)(17). Pub. L. 113–295, § 221(a)(19)(B)(iv), struck out par. (17) which read as follows: ‘‘any con- Page 2709 TITLE 26—INTERNAL REVENUE CODE § 3121 tribution, payment, or service provided by an employer which may be excluded from the gross income of an em- ployee, his spouse, or his dependents, under the provi- sions of section 120 (relating to amounts received under qualified group legal services plans);’’. Subsec. (b)(17). Pub. L. 113–295, § 221(a)(99)(C)(i), struck out par. (17) which read as follows: ‘‘service in the employ of any organization which is performed (A) in any year during any part of which such organization is registered, or there is in effect a final order of the Subversive Activities Control Board requiring such or- ganization to register, under the Internal Security Act of 1950, as amended, as a Communist-action organiza- tion, a Communist-front organization, or a Communist- infiltrated organization, and (B) after June 30, 1956;’’. 2008—Subsec. (a)(23). Pub. L. 110–245, § 115(a)(1), added par. (23). Subsec. (b)(5)(E). Pub. L. 110–458 struck out ‘‘or spe- cial trial judge’’ before ‘‘of the United States Tax Court’’. Subsec. (z). Pub. L. 110–245, § 302(a), added subsec. (z). 2007—Subsec. (v)(1)(A). Pub. L. 110–172, which directed amendment of subpar. (A) by inserting ‘‘or consisting of designated Roth contributions (as defined in section 402A(c))’’ before comma at end, was executed by mak- ing the insertion before ‘‘, or’’, to reflect the probable intent of Congress. 2006—Subsec. (b)(5)(E). Pub. L. 109–280 inserted ‘‘or special trial judge’’ before ‘‘of the United States Tax Court’’. 2004—Subsec. (a)(7)(B). Pub. L. 108–203, § 423(a), sub- stituted ‘‘on a farm operated for profit’’ for ‘‘described in subsection (g)(5)’’. Subsec. (a)(18). Pub. L. 108–375 substituted ‘‘134(b)(4), or 134(b)(5)’’ for ‘‘or 134(b)(4)’’. Subsec. (a)(20). Pub. L. 108–357, § 320(b)(1), inserted ‘‘108(f)(4),’’ after ‘‘74(c),’’. Subsec. (a)(22). Pub. L. 108–357, § 251(a)(1)(A), added par. (22). Subsec. (g)(5). Pub. L. 108–203, § 423(c), struck out ‘‘or is domestic service in a private home of the employer’’ after ‘‘employer’s trade or business’’. Subsec. (v)(2)(A). Pub. L. 108–357, § 802(c)(1), inserted ‘‘or to any specified stock compensation (as defined in section 4985) on which tax is imposed by section 4985’’ before period at end. 2003—Subsec. (a)(18). Pub. L. 108–121 substituted ‘‘, 129, or 134(b)(4)’’ for ‘‘or 129’’. 2000—Subsec. (a)(5)(G). Pub. L. 106–554 substituted a comma for the semicolon at end. 1998—Subsec. (a)(5)(F). Pub. L. 105–206, § 6023(13)(A), which directed the substitution of a comma for the semicolon at end of subpar. (F), could not be executed because a semicolon did not appear at end of subpar. (F). Subsec. (a)(5)(G). Pub. L. 105–206, § 6023(13)(B), struck out ‘‘or’’ at end. Subsec. (a)(5)(I). Pub. L. 105–206, § 6023(13)(C), sub- stituted a semicolon for the period at end. Subsec. (b)(7)(C). Pub. L. 105–277 added Pub. L. 105–33, § 11246(b)(2)(A). See 1997 Amendment note below. 1997—Subsec. (b)(5)(H)(i). Pub. L. 105–61 substituted ‘‘1986,’’ for ‘‘1986 or’’ and inserted ‘‘or the Federal Em- ployees’ Retirement System Open Enrollment Act of 1997’’ after ‘‘(50 U.S.C. 2157),’’. Subsec. (b)(7)(C). Pub. L. 105–33, § 11246(b)(2)(A), as added by Pub. L. 105–277, inserted ‘‘(other than the Fed- eral Employees Retirement System provided in chapter 84 of title 5, United States Code)’’ after ‘‘law of the United States’’ in introductory provisions. 1996—Subsec. (a)(5)(F). Pub. L. 104–188, § 1421(b)(8)(A), struck out ‘‘or’’ at end. Subsec. (a)(5)(G). Pub. L. 104–188, § 1458(b)(1), which di- rected that subpar. (G) be amended by striking ‘‘(or)’’ at the end, could not be executed because ‘‘(or)’’ did not appear. Pub. L. 104–188, § 1421(b)(8)(A), inserted ‘‘or’’ at end. Subsec. (a)(5)(H). Pub. L. 104–188, § 1458(b)(1), inserted ‘‘or’’ at end. Pub. L. 104–188, § 1421(b)(8)(A), added subpar. (H). Subsec. (a)(5)(I). Pub. L. 104–188, § 1458(b)(1), added subpar. (I). Subsec. (b). Pub. L. 104–188, § 1116(a)(1)(A), inserted closing provisions ‘‘For purposes of paragraph (20), the operating crew of a boat shall be treated as normally made up of fewer than 10 individuals if the average size of the operating crew on trips made during the pre- ceding 4 calendar quarters consisted of fewer than 10 in- dividuals.’’ Subsec. (b)(20)(A). Pub. L. 104–188, § 1116(a)(1)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘such individual does not receive any cash remuneration (other than as provided in subparagraph (B)),’’. 1994—Subsec. (a)(7)(B). Pub. L. 103–387, § 2(a)(1)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘‘cash remuneration paid by an employer in any calendar quarter to an employee for domestic service in a private home of the employer, if the cash remuneration paid in such quarter by the em- ployer to the employee for such service is less than $50. As used in this subparagraph, the term ‘domestic serv- ice in a private home of the employer’ does not include service described in subsection (g)(5);’’. Subsec. (b)(7)(F)(iv). Pub. L. 103–296, § 303(a)(2), sub- stituted ‘‘$1,000 with respect to service performed dur- ing any calendar year commencing on or after January 1, 1995, ending on or before December 31, 1999, and the adjusted amount determined under section 218(c)(8)(B) of the Social Security Act for any calendar year com- mencing on or after January 1, 2000, with respect to service performed during such calendar year’’ for ‘‘$100’’. Subsec. (b)(10)(B). Pub. L. 103–296, § 108(h)(2), sub- stituted ‘‘Commissioner of Social Security’’ for ‘‘Sec- retary of Health and Human Services’’. Subsec. (b)(15). Pub. L. 103–296, § 319(a)(5), inserted ‘‘, except service which constitutes ‘employment’ under subsection (y)’’ after ‘‘international organiza- tion’’. Subsec. (b)(19). Pub. L. 103–296, § 320(a)(1)(C), sub- stituted ‘‘(J), (M), or (Q)’’ for ‘‘(J), or (M)’’ in two places. Subsec. (b)(21). Pub. L. 103–387, § 2(a)(1)(C), added par. (21). Subsec. (u)(2)(B)(ii)(V). Pub. L. 103–296, § 303(b)(2), sub- stituted ‘‘$1,000 with respect to service performed dur- ing any calendar year commencing on or after January 1, 1995, ending on or before December 31, 1999, and the adjusted amount determined under section 218(c)(8)(B) of the Social Security Act for any calendar year com- mencing on or after January 1, 2000, with respect to service performed during such calendar year’’ for ‘‘$100’’. Subsec. (x). Pub. L. 103–387, § 2(a)(1)(B), added subsec. (x). Subsec. (y). Pub. L. 103–296, § 319(a)(1), added subsec. (y). 1993—Subsec. (a)(1). Pub. L. 103–66, § 13207(a)(1), in- serted ‘‘in the case of the taxes imposed by sections 3101(a) and 3111(a)’’ after ‘‘(1)’’, substituted ‘‘contribu- tion and benefit base (as determined under section 230 of the Social Security Act)’’ for ‘‘applicable contribu- tion base (as determined under subsection (x))’’ in two places, and substituted ‘‘such contribution and benefit base’’ for ‘‘such applicable contribution base’’. Subsec. (b)(5)(H)(i). Pub. L. 103–178 substituted ‘‘sec- tion 307 of the Central Intelligence Agency Retirement Act (50 U.S.C. 2157)’’ for ‘‘section 307 of the Central In- telligence Agency Retirement Act of 1964 for Certain Employees’’. Subsec. (x). Pub. L. 103–66, § 13207(a)(2), struck out subsec. (x) which defined parameters of the applicable contribution base for purposes of this chapter. 1992—Subsec. (v)(1)(A). Pub. L. 102–318 substituted ‘‘402(e)(3)’’ for ‘‘402(a)(8)’’. 1990—Subsec. (a)(1). Pub. L. 101–508, § 11331(a)(1), sub- stituted ‘‘applicable contribution base (as determined under subsection (x))’’ for ‘‘contribution and benefit base (as determined under section 230 of the Social Se- Page 2710 TITLE 26—INTERNAL REVENUE CODE § 3121 curity Act)’’ wherever appearing and ‘‘such applicable contribution base’’ for ‘‘such contribution and benefit base’’. Subsec. (b)(7)(F). Pub. L. 101–508, § 11332(b), added sub- par. (F). Subsec. (x). Pub. L. 101–508, § 11331(a)(2), added subsec. (x). 1989—Subsec. (l)(1). Pub. L. 101–239, § 10201(b)(3), sub- stituted ‘‘paragraph (6)’’ for ‘‘paragraph (8)’’ in intro- ductory provisions. Subsec. (l)(2). Pub. L. 101–239, § 10201(a)(1), inserted at end ‘‘Notwithstanding any other provision of this sub- section, the period for which any such agreement is ef- fective with respect to any foreign entity shall termi- nate at the end of any calendar quarter in which the foreign entity, at any time in such quarter, ceases to be a foreign affiliate as defined in paragraph (6).’’ Subsec. (l)(3). Pub. L. 101–239, § 10201(a)(2), (3), added par. (3) and struck out former par. (3) relating to termi- nation of period by American employer. Subsec. (l)(4). Pub. L. 101–239, § 10201(a)(2), (4), redesig- nated par. (6) as (4) and struck out former par. (4) relat- ing to termination of period by Secretary. Subsec. (l)(5). Pub. L. 101–239, § 10201(a)(2), (4), redesig- nated par. (7) as (5) and struck out former par. (5) relat- ing to no renewal of agreement. Subsec. (l)(6) to (10). Pub. L. 101–239, § 10201(a)(4), re- designated pars. (6) to (10) as (4) to (8), respectively. Subsec. (x). Pub. L. 101–140 amended this section to read as if amendments by Pub. L. 100–647, § 1011B(a)(22)(A), had not been enacted, see 1988 Amend- ment note below. 1988—Subsec. (a)(5)(G). Pub. L. 100–647, § 1011B(a)(23)(A), inserted ‘‘if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received’’ after ‘‘section 125)’’. Subsec. (a)(8)(B). Pub. L. 100–647, § 8017(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘‘cash remuneration paid by an em- ployer in any calendar year to an employee for agricul- tural labor unless (i) the cash remuneration paid in such year by the employer to the employee for such labor is $150 or more, or (ii) the employer’s expendi- tures for agricultural labor in such year equal or ex- ceed $2,500;’’. Subsec. (a)(11). Pub. L. 100–647, § 1001(g)(4)(B)(i), in- serted ‘‘(determined without regard to section 274(n))’’ after ‘‘section 217’’. Subsec. (a)(21). Pub. L. 100–647, § 3043(c)(2), added par. (21). Subsec. (b)(5). Pub. L. 100–647, § 8015(c)(2), inserted ‘‘any such service performed on or after any date on which such individual performs’’ after ‘‘with respect to’’ in provision preceding subpar. (C). Subsec. (b)(5)(H). Pub. L. 100–647, § 8015(b)(2), amended subpar. (H) generally. Prior to amendment, subpara- graph (H) read as follows: ‘‘service performed by an in- dividual on or after the effective date of an election by such individual under section 301(a) of the Federal Em- ployees’ Retirement System Act of 1986, or under regu- lations issued under section 860 of the Foreign Service Act of 1980 or section 307 of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees, to become subject to chapter 84 of title 5, United States Code;’’. Subsec. (b)(19). Pub. L. 100–647, § 1001(d)(2)(C)(i), sub- stituted ‘‘(F), (J), or (M)’’ for ‘‘(F) or (J)’’ in two places. Subsec. (b)(20). Pub. L. 100–647, § 8016(a)(4)(A), (C), made technical correction to directory language of Pub. L. 99–272, § 13303(c)(2), see 1986 Amendment note below. Subsec. (d)(3), (4). Pub. L. 100–647, § 8016(a)(3)(A), re- designated par. (4) as (3) and substituted ‘‘; or’’ for a period at the end, and redesignated par. (3) as (4), sub- stituted a period for ‘‘; or’’ at the end, and moved re- designated par. (4) to the end of the subsection. Subsec. (u)(2)(B)(ii)(VI). Pub. L. 100–647, § 1018(r)(2)(A), added subcl. (VI). Subsec. (v)(3)(A). Pub. L. 100–647, § 1011(e)(8), sub- stituted ‘‘457(f)(1)’’ for ‘‘457(e)(1)’’. Subsec. (v)(3)(C). Pub. L. 100–647, § 1018(u)(35), sub- stituted ‘‘Savings’’ for ‘‘Saving’’. Subsec. (x). Pub. L. 100–647, § 1011B(a)(22)(A), added subsec. (x) relating to benefits provided under certain employee benefit plans. 1987—Subsec. (a)(2)(C). Pub. L. 100–203, § 9003(a)(2), substituted ‘‘death, except that this paragraph does not apply to a payment for group-term life insurance to the extent that such payment is includible in the gross in- come of the employee’’ for ‘‘death’’. Subsec. (a)(5)(F). Pub. L. 100–203, § 9023(d)(1), sub- stituted a comma for semicolon before ‘‘or’’ at end. Subsec. (a)(5)(G). Pub. L. 100–203, § 9023(d)(2), sub- stituted a semicolon for comma at end. Subsec. (a)(8)(B)(ii). Pub. L. 100–203, § 9002(b), added cl. (ii) and struck out former cl. (ii) which read as follows: ‘‘the employee performs agricultural labor for the em- ployer on 20 days or more during such year for cash re- muneration computed on a time basis;’’. Subsec. (b)(3)(A). Pub. L. 100–203, § 9005(b)(1), sub- stituted ‘‘18’’ for ‘‘21’’. Pub. L. 100–203, § 9004(b)(1), struck out ‘‘performed by an individual in the employ of his spouse, and service’’ after ‘‘service’’. Subsec. (b)(3)(B). Pub. L. 100–203, § 9005(b)(2), inserted ‘‘under the age of 21 in the employ of his father or mother, or performed by an individual’’ after first ref- erence to ‘‘individual’’. Pub. L. 100–203, § 9004(b)(2), inserted introductory pro- visions and struck out former introductory provisions which read as follows: ‘‘service not in the course of the employer’s trade or business, or domestic service in a private home of the employer, performed by an indi- vidual in the employ of his son or daughter; except that the provisions of this subparagraph shall not be appli- cable to such domestic service if—’’. Subsec. (i)(2). Pub. L. 100–203, § 9001(b)(2), substituted ‘‘only (A) his basic pay as described in chapter 3 and section 1009 of title 37, United States Code, in the case of an individual performing service to which subpara- graph (A) of such subsection (m)(1) applies, or (B) his compensation for such service as determined under sec- tion 206(a) of title 37, United States Code, in the case of an individual performing service to which subpara- graph (B) of such subsection (m)(1) applies.’’ for ‘‘only his basic pay as described in chapter 3 and section 1009 of title 37, United States Code.’’ Subsec. (m)(1). Pub. L. 100–203, § 9001(b)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘The term ‘employment’ shall, notwith- standing the provisions of subsection (b) of this section, include service performed by an individual as a member of a uniformed service on active duty; but such term shall not include any such service which is performed while on leave without pay.’’ Subsec. (q). Pub. L. 100–203, § 9006(a), in heading sub- stituted ‘‘both employee and employer taxes’’ for ‘‘em- ployee taxes’’, and in text struck out ‘‘other than for purposes of the taxes imposed by section 3111’’ after ‘‘of this chapter’’, substituted ‘‘remuneration for such em- ployment (and deemed to have been paid by the em- ployer for purposes of subsections (a) and (b) of section 3111)’’ for ‘‘remuneration for employment’’, and in- serted before period at end ‘‘; except that, in deter- mining the employer’s liability in connection with the taxes imposed by section 3111 with respect to such tips in any case where no statement including such tips was so furnished (or to the extent that the statement so furnished was inaccurate or incomplete), such remu- neration shall be deemed for purposes of subtitle F to be paid on the date on which notice and demand for such taxes is made to the employer by the Secretary’’. Subsec. (t). Pub. L. 100–203, § 9006(b)(2), struck out subsec. (t) which related to special rule for determining wages subject to employer tax in case of certain em- ployers whose employees receive income from tips. 1986—Subsec. (a)(5)(C). Pub. L. 99–514, § 1108(g)(7), amended subpar. (C) generally. Prior to amendment, Page 2711 TITLE 26—INTERNAL REVENUE CODE § 3121 subpar. (C) read as follows: ‘‘under a simplified em- ployee pension if, at the time of the payment, it is rea- sonable to believe that the employee will be entitled to a deduction under section 219(b)(2) for such payment,’’. Subsec. (a)(5)(G). Pub. L. 99–514, § 1151(d)(2)(A), added subpar. (G). Subsec. (a)(8). Pub. L. 99–514, § 1883(a)(11)(B), realigned margin of subpar. (B). Subsec. (a)(20). Pub. L. 99–514, § 122(e)(1), inserted ref- erence to section 74(c). Subsec. (b)(5)(H). Pub. L. 99–335 added subpar. (H). Subsec. (b)(7)(E). Pub. L. 99–509, § 9002(b)(1)(A), added subpar. (E). Subsec. (b)(20). Pub. L. 99–272, § 13303(c)(2), as amended by Pub. L. 100–647, § 8016(a)(4)(A), (C), inserted ‘‘(other than service described in paragraph (3)(A))’’ after ‘‘service’’. Subsec. (d)(3), (4). Pub. L. 99–509, § 9002(b)(2)(A), added par. (3) and redesignated former par. (3) as (4). Subsec. (i)(5). Pub. L. 99–272, § 12112(b), substituted ‘‘shall not include’’ for ‘‘shall, subject to the provisions of subsection (a)(1) of this section, include’’. Subsec. (u). Pub. L. 99–272, § 13205(a)(1), amended sub- sec. (u) generally, substantially expanding and revising its provisions by extending the application of hospital insurance tax to State and local employment. Subsec. (u)(2)(B)(ii)(V). Pub. L. 99–514, § 1895(b)(18)(A), added subcl. (V). Subsec. (v)(2)(A)(ii). Pub. L. 99–514, § 1899A(38), sub- stituted ‘‘forfeiture’’ for ‘‘forefeiture’’. Subsec. (v)(3)(C). Pub. L. 99–514, § 1147(b), added sub- par. (C). Subsec. (w)(1). Pub. L. 99–514, § 1899A(39), substituted ‘‘this chapter’’ for ‘‘chapter 21 of this Code’’ in first sentence. Subsec. (w)(2). Pub. L. 99–514, § 1882(c), substituted last three sentences for former last two sentences which read as follows: ‘‘The election may not be re- voked by the church or organization, but shall be per- manently revoked by the Secretary if such church or organization fails to furnish the information required under section 6051 to the Secretary for a period of 2 years or more with respect to remuneration paid for such services by such church or organization, and, upon request by the Secretary, fails to furnish all such pre- viously unfurnished information for the period covered by the election. Such revocation shall apply retro- actively to the beginning of the 2-year period for which the information was not furnished.’’ Pub. L. 99–514, § 1899A(40), substituted ‘‘July 18, 1984’’ for ‘‘the date of the enactment of this subsection’’ in first sentence. 1985—Subsec. (b)(5)(B)(i)(V). Pub. L. 99–221 added subcl. (V). 1984—Subsec. (a). Pub. L. 98–369, § 531(d)(1)(A)(i), in- serted ‘‘(including benefits)’’ before ‘‘paid in any me- dium’’ in introductory provisions. Subsec. (a)(5)(C) to (G). Pub. L. 98–369, § 491(d)(36), struck out subpar. (C) which provided: ‘‘under or to a bond purchase plan which, at the time of such pay- ment, is a qualified bond purchase plan described in section 405(a),’’ and redesignated subpars, (D) to (G) as (C) to (F), respectively. Subsec. (a)(20). Pub. L. 98–369, § 531(d)(1)(A)(ii), added par. (20). Subsec. (b)(1). Pub. L. 98–369, § 2663(i)(1), struck out ‘‘(A) under contracts entered into in accordance with title V of the Agricultural Act of 1949, as amended (7 U.S.C. 1461–1468), or (B)’’. Subsec. (b)(5)(B). Pub. L. 98–369, § 2601(b)(1), in amend- ing subpar. (B) generally, substituted provision broad- ening social security coverage for newly hired Federal civilian employees effective with remuneration paid after Dec. 31, 1983, by providing that persons transfer- ring from other government service to civilian service be covered under social security, unless the other serv- ice was in an international organization, or the person is returning to civilian service after temporary mili- tary or reserve duty and is exercising his reemploy- ment rights under chapter 43 of title 38. Subsec. (b)(5)(C) to (G). Pub. L. 98–369, § 2601(b)(2), sub- stituted subpar. designations (C) to (G) for former des- ignations (i) to (v), respectively, in subpar. (D), as so redesignated, redesignated cls. (I) to (III) as (i) to (iii), respectively, and amended generally, subpar. (G), as so redesignated, designating provision relating to service performed by an individual who is not subject to sub- chapter III of chapter 83 of title 5 as cl. (i), and in cl. (i) as so designated, inserting reference to another re- tirement system established by a law of the United States for Federal employees, other than for members of the uniformed services and adding cls. (ii) and (iii), and provision for determining for purposes of this sub- paragraph whether an individual is subject to sub- chapter III of chapter 83 of title 5 or any other retire- ment system. Subsec. (b)(8). Pub. L. 98–369, § 2603(a)(2), designated existing provisions as subpar. (A), substituted ‘‘this subparagraph’’ for ‘‘this paragraph’’, and added subpar. (B). Subsec. (b)(10)(B). Pub. L. 98–369, § 2663(j)(5)(C), sub- stituted ‘‘Secretary of Health and Human Services’’ for ‘‘Secretary of Health, Education, and Welfare’’. Subsec. (i)(2). Pub. L. 98–369, § 2663(i)(2), substituted ‘‘chapter 3 and section 1009 of title 37, United States Code’’ for ‘‘section 102(10) of the Servicemen’s and Vet- erans’ Survivor Benefits Act’’. Subsec. (m)(2). Pub. L. 98–369, § 2663(i)(3), substituted ‘‘paragraph (21) of section 101 of title 38, United States Code’’ for ‘‘section 102 of the Servicemen’s and Vet- erans’ Survivor Benefits Act’’ and ‘‘paragraph (22) of such section’’ for ‘‘such section’’. Subsec. (m)(3). Pub. L. 98–369, § 2663(i)(4), substituted ‘‘paragraph (23) of such section 101’’ for ‘‘such section 102’’. Subsec. (n). Pub. L. 98–369, § 2663(i)(5), in provision preceding par. (1) substituted ‘‘a reserve component as defined in section 101(27) of title 38, United States Code’’ for ‘‘a reserve component of a uniformed service as defined in section 102(3) of the Servicemen’s and Vet- erans’ Survivor Benefits Act’’, and inserted ‘‘, the Na- tional Oceanic and Atmospheric Administration Corps,’’. Subsec. (n)(5). Pub. L. 98–369, § 2663(i)(5)(C), sub- stituted ‘‘military, naval, or air’’ for ‘‘military or naval’’ in two places. Subsec. (n)(5)(B). Pub. L. 98–369, § 2663(i)(5)(D), sub- stituted ‘‘Military Selective Service Act’’ for ‘‘Uni- versal Military Training and Service Act’’. Subsec. (v)(1)(B). Pub. L. 98–369, § 2661(o)(3), sub- stituted ‘‘section 414(h)(2) where the pick up referred to in such section is pursuant to a salary reduction agree- ment (whether evidenced by a written instrument or otherwise)’’ for ‘‘section 414(h)(2)’’. Subsec. (v)(2)(A). Pub. L. 98–369, § 67(c), inserted provi- sion that the preceding sentence shall not apply to any excess parachute payment (as defined in section 2801G(b)). Subsec. (w). Pub. L. 98–369, § 2603(b), added subsec. (w). 1983—Subsec. (a). Pub. L. 98–21, § 327(b)(1), inserted in text following last numbered paragraph a provision that nothing in the regulations prescribed for purposes of chapter 24 (relating to income tax withholding) which provides an exclusion from ‘‘wages’’ as used in such chapter shall be construed to require a similar ex- clusion from ‘‘wages’’ in regulations prescribed for pur- poses of this chapter. Pub. L. 98–21, § 324(a)(3)(D), substituted reference to subpar. (A) of par. (2) for reference to subpar. (B) there- of in text following last numbered paragraph. Subsec. (a)(2). Pub. L. 98–21, § 324(a)(3)(A), struck out ‘‘(A) retirement, or’’, and redesignated subpars. (B) to (D) as (A) to (C), respectively. Subsec. (a)(3). Pub. L. 98–21, § 324(a)(3)(B), struck out par. (3) which related to any payment made to an em- ployee (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) on account of retirement. Subsec. (a)(5)(D). Pub. L. 98–21, § 328(a), substituted ‘‘section 219(b)(2)’’ for ‘‘section 219’’. Page 2712 TITLE 26—INTERNAL REVENUE CODE § 3121 Subsec. (a)(5)(E) to (G). Pub. L. 98–21, § 324(a)(2), added subpars. (E) to (G). Subsec. (a)(9). Pub. L. 98–21, § 324(a)(3)(B), struck out par. (9) which related to any payment (other than vaca- tion or sick pay) made to an employee after the month in which he attained age 62, if such employee did not work for the employer in the period for which such pay- ment was made. Subsec. (a)(13)(A)(iii). Pub. L. 98–21, § 324(a)(3)(C), struck out cl. (iii) which related to the case of retire- ment after attaining an age specified in the plan re- ferred to in subparagraph (B) or in a pension plan of the employer. Subsec. (a)(19). Pub. L. 98–21, § 327(a)(1), added par. (19). Subsec. (b). Pub. L. 98–21, § 323(a)(1), substituted ‘‘a citizen or resident of the United States’’ for ‘‘a citizen of the United States’’ in text preceding par. (1). Pub. L. 98–21, § 322(a)(2), added cl. (C) in text pre- ceding par. (1). Subsec. (b)(5). Pub. L. 98–21, § 101(b)(1), amended par. (5) generally. Prior to amendment par. (5) read as fol- lows: ‘‘Service performed in the employ of any instru- mentality of the United States, if such instrumentality is exempt from the tax imposed by section 3111 by vir- tue of any provision of law which specifically refers to such section (or the corresponding section of prior law) in granting such exemption;’’. Subsec. (b)(6). Pub. L. 98–21, § 101(b)(1), amended par. (6) generally. Prior to amendment par. (6) read as fol- lows: ‘‘(A) service performed in the employ of the United States or in the employ of any instrumentality of the United States, if such service is covered by a retire- ment system established by a law of the United States; ‘‘(B) service performed, by an individual in the em- ploy of an instrumentality of the United States if such an instrumentality was exempt from the tax imposed by section 1410 of the Internal Revenue Code of 1939 on December 31, 1950, and if such service is covered by a re- tirement system established by such instrumentality; except that the provisions of this subparagraph shall not be applicable to— ‘‘(i) service performed in the employ of a corpora- tion which is wholly owned by the United States; ‘‘(ii) service performed in the employ of a Federal land bank, a Federal intermediate credit bank, a bank for cooperatives, a Federal land bank associa- tion, a production credit association, a Federal Re- serve Bank, a Federal Home Loan Bank, or a Federal Credit Union; ‘‘(iii) service performed in the employ of a State, county, or community committee under the Com- modity Stabilization Service; ‘‘(iv) service performed by a civilian employee, not compensated from funds appropriated by the Con- gress, in the Army and Air Force Exchange Service, Army and Air Force Motion Picture Service, Navy Exchanges, Marine Corps Exchanges, or other activi- ties, conducted by an instrumentality of the United States subject to the jurisdiction of the Secretary of Defense, at installations of the Department of De- fense for the comfort, pleasure, contentment, and mental and physical improvement of personnel of such Department; or ‘‘(v) service performed by a civilian employee, not compensated from funds appropriated by the Con- gress, in the Coast Guard Exchanges or other activi- ties, conducted by an instrumentality of the United States subject to the jurisdiction of the Secretary of Transportation, at installations of the Coast Guard for the comfort, pleasure, contentment, and mental and physical improvement of personnel of the Coast Guard; ‘‘(C) service performed in the employ of the United States or in the employ of any instrumentality of the United States, if such service is performed— ‘‘(i) as the President or Vice President of the United States or as a Member, Delegate, or Resident Commissioner of or to the Congress; ‘‘(ii) in the legislative branch; ‘‘(iii) in a penal institution of the United States by an inmate thereof; ‘‘(iv) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other student employees of hospitals of the Federal Govern- ment), other than as a medical or dental intern or a medical or dental resident in training; ‘‘(v) by any individual as an employee serving on a temporary basis in case of fire, storm, earthquake, flood, or other similar emergency; or ‘‘(vi) by any individual to whom subchapter III of chapter 83 of title 5, United States Code, does not apply because such individual is subject to another retirement system (other than the retirement system of the Tennessee Valley Authority);’’. Subsec. (b)(8). Pub. L. 98–21, § 102(b)(1), struck out the subpar. (A) designation preceding ‘‘service performed’’, struck out subpar. (B) which related to service per- formed by employees of nonprofit organizations, and in par. (8), as so designated substituted ‘‘except that this paragraph shall not apply’’ for ‘‘except that this sub- paragraph shall not apply’’. Subsec. (i)(5). Pub. L. 98–21, § 101(c)(2), added par. (5). Subsec. (k). Pub. L. 98–21, § 102(b)(2), struck out sub- sec. (k) which related to exemption of religious, chari- table and certain other organizations. Subsec. (l). Pub. L. 98–21, § 321(a)(1), substituted ‘‘Agreements entered into by American employers with respect to foreign affiliates’’ for ‘‘Agreements entered into by domestic corporations with respect to foreign subsidiaries’’ in heading. Subsec. (l)(1). Pub. L. 98–21, § 321(a)(1), substituted ‘‘affiliates’’ for ‘‘subsidiaries’’ in par. (1) heading, and in first sentence of provisions preceding subpar. (A), substituted ‘‘at the American employer’s request’’ for ‘‘at the request of any domestic corporation’’, ‘‘any American employer (as defined in subsection (h)) who’’ for ‘‘any such corporation which’’, ‘‘such manner and form’’ for ‘‘such form and manner’’, and ‘‘affiliates’’ for ‘‘subsidiaries’’ after ‘‘such employer’s foreign’’, and in- serted ‘‘or residents’’ after ‘‘citizens’’. Pub. L. 98–21, § 321(e)(1), substituted ‘‘American em- ployer’’ for ‘‘domestic corporation’’, ‘‘affiliate’’ for ‘‘subsidiary’’ and ‘‘citizens or residents’’ for ‘‘citizens’’ wherever appearing in second and third sentences of provisions preceding subpar. (A) and substituted ‘‘American employer’’ for ‘‘domestic corporation’’ in subpars. (A) and (B). Subsec. (l)(2) to (5). Pub. L. 98–21, § 321(e)(1), sub- stituted, wherever appearing, ‘‘American employer’’ for ‘‘domestic corporation’’, ‘‘American employers’’ for ‘‘domestic corporations’’, ‘‘affiliate’’ for ‘‘subsidiary’’, ‘‘affiliates’’ for ‘‘subsidiaries’’, ‘‘foreign entity’’ for ‘‘foreign corporation’’, ‘‘foreign entities’’ for ‘‘foreign corporations’’, and ‘‘citizens or residents’’ for ‘‘citi- zens’’. Subsec. (l)(8). Pub. L. 98–21, § 321(a)(2), amended par. (8) generally, substituting provision defining a foreign affiliate for provision defining a foreign subsidiary of a domestic corporation which, for the purposes of this subsection and section 210(a) of the Social Security Act, had been defined as a foreign corporation not less than 20 percent of the voting stock of which was owned by such domestic corporation, or a foreign corporation more than 50 percent of the voting stock of which was owned by the foreign corporation described above. Subsec. (l)(9), (10). Pub. L. 98–21, § 321(e)(1), sub- stituted, wherever appearing, ‘‘American employer’’ for ‘‘domestic corporation’’, ‘‘American employers’’ for ‘‘domestic corporations’’, and ‘‘foreign entities’’ for ‘‘foreign corporations’’. Subsec. (r)(3)(A). Pub. L. 98–21, § 102(b)(3)(A), sub- stituted ‘‘subsection (b)(8)’’ and ‘‘section 210(a)(8)’’ for ‘‘subsection (b)(8)(A)’’ and ‘‘section 210(a)(8)(A)’’, re- spectively, in provisions preceding cl. (i). Subsec. (r)(4). Pub. L. 98–21, § 102(b)(3)(B), struck out par. (4) which related to coordination with coverage of lay employees. Page 2713 TITLE 26—INTERNAL REVENUE CODE § 3121 Subsec. (u)(1). Pub. L. 98–21, § 101(b)(2), substituted ‘‘sections 3101(b) and 3111(b), subsection (b) shall be ap- plied without regard to paragraph (5) thereof’’ for ‘‘sec- tions 3101(b) and 3111(b)— ‘‘(A) paragraph (6) of subsection (b) shall be applied without regard to subparagraphs (A), (B), and (C)(i), (ii), and (vi) thereof, and ‘‘(B) paragraph (5) of subsection (b) (and the provi- sions of law referred to therein) shall not apply’’. Subsec. (v). Pub. L. 98–21, § 324(a)(1), added subsec. (v). 1982—Subsec. (u). Pub. L. 97–248 added subsec. (u). 1981—Subsec. (a). Pub. L. 97–123 inserted ‘‘(but, in the case of payments made to an employee or any of his de- pendents this subparagraph shall exclude from the term ‘wages’ only payments which are received under a workmen’s compensation law)’’ after ‘‘sickness or acci- dent disability’’ in par. (2)(B), and inserted, after par. (18), the following provision: ‘‘Except as otherwise pro- vided in regulations prescribed by the Secretary, any third party which makes a payment included in wages solely by reason of the parenthetical matter contained in subparagraph (B) of paragraph (2) shall be treated for purposes of this chapter and chapter 22 as the employer with respect to such wages.’’ Subsec. (a)(18). Pub. L. 97–34 substituted ‘‘section 127 or 129’’ for ‘‘section 127’’. 1980—Subsec. (a)(5)(D). Pub. L. 96–222 added subpar. (D). Subsec. (a)(6). Pub. L. 96–499 struck out ‘‘(or the cor- responding section of prior law)’’ after ‘‘section 3101’’ in subpar. (A) and inserted ‘‘with respect to remuneration paid to an employee for domestic service in a private home of the employer or for agricultural labor’’ after subpar. (B). 1978—Subsec. (a)(17). Pub. L. 95–472 added par. (17). Subsec. (a)(18). Pub. L. 95–600 added par. (18). 1977—Subsec. (a)(7)(C), (10). Pub. L. 95–216, § 356(a), substituted ‘‘year’’ for ‘‘quarter’’ and ‘‘$100’’ for ‘‘$50’’, wherever appearing. Subsec. (a)(16). Pub. L. 95–216, § 356(b), added par. (16). Subsec. (b)(10). Pub. L. 95–216, § 356(c), struck out sub- par. (A) which related to service performed in any cal- endar quarter in the employ of any organization ex- empt from income tax under section 501(a) (other than an organization described in section 401(a) or under sec- tion 521, if the remuneration for such service was less than $50, struck out the designation ‘‘(B)’’ preceding the remainder of par. (10), and redesignated former cls. (i) and (ii) of former subpar. (B) as subpars. (A) and (B). Subsecs. (b)(17)(A), (g)(4)(B). Pub. L. 95–216, § 356(d), substituted ‘‘year’’ for ‘‘quarter’’. Subsec. (k)(4)(A). Pub. L. 95–216, § 312(b)(2), (f), sub- stituted ‘‘(or, if later, as of the earliest date on which it satisfies clause (ii) of this subparagraph)’’ for ‘‘or any subsequent date’’ in cl. (i) and, in provisions fol- lowing cl. (ii), inserted ‘‘(subject to subparagraph (C))’’ after ‘‘effective’’. Subsec. (k)(4)(B)(ii). Pub. L. 95–216, § 312(b)(4), sub- stituted ‘‘first day of the calendar quarter’’ for ‘‘date’’. Subsec. (k)(4)(B)(iii). Pub. L. 95–216, § 312(g), added cl. (iii). Subsec. (k)(4)(C). Pub. L. 95–216, § 312(b)(1), added sub- par. (C). Subsec. (k)(5). Pub. L. 95–216, § 312(a)(1), substituted ‘‘prior to April 1, 1978,’’ for ‘‘prior to the expiration of 180 days after the date of the enactment of this para- graph,’’ in subpar. (B), and, in provisions following sub- par. (B), substituted ‘‘April 1, 1978’’ for ‘‘the 181st day after the date of enactment of this paragraph’’ and sub- stituted ‘‘April 1, 1978,’’ for ‘‘such 181st day’’. Subsec. (k)(6). Pub. L. 95–216, § 312(b)(3), inserted ‘‘(ex- cept as provided in paragraph (4)(C))’’ after ‘‘services involved’’ in introductory provisions. Subsec. (k)(7). Pub. L. 95–216, § 312(a)(2), substituted ‘‘prior to April 1, 1978,’’ for ‘‘prior to the expiration of 180 days after the date of the enactment of this para- graph’’, ‘‘April 1, 1978,’’ for ‘‘the 181st day after such date,’’ and ‘‘prior to that date’’ for ‘‘prior to the first day of the calendar quarter in which such 181st day oc- curs’’. Subsec. (k)(8). Pub. L. 95–216, § 312(a)(3), (d), amended par. (8) first by substituting ‘‘prior to April 1, 1978,’’ for ‘‘by the end of the 180-day period following the date of the enactment of this paragraph’’, ‘‘prior to April 1, 1978’’ for ‘‘within that period’’, and ‘‘on that date’’ for ‘‘on the 181st day following that date’’, and then fur- ther amending par. (8) as so amended by dividing the existing provisions into introductory provisions, sub- par. (B), and closing provisions, inserting subpars. (A) and (C), substituting ‘‘by March 31, 1978’’ for ‘‘prior to April 1, 1978’’, ‘‘by that date’’ for ‘‘prior to April 1, 1978’’, and ‘‘on April 1, 1978’’ for ‘‘on that date’’ in sub- par. (B) as so redesignated, and, in closing provisions, inserting ‘‘, or with respect to service constituting em- ployment by reason of such request,’’ after ‘‘in which the date of such filing or constructive filing occurs’’. Subsec. (s). Pub. L. 95–216, § 314(a), added subsec. (s). Subsec. (t). Pub. L. 95–216, § 315(a), added subsec. (t). 1976—Subsec. (b). Pub. L. 94–455, § 1903(a)(3)(A), sub- stituted ‘‘, of whatever nature, performed’’ for ‘‘per- formed after 1936 and prior to 1955 which was employ- ment for purposes of subchapter A of chapter 9 of the Internal Revenue Code of 1939 under the law applicable to the period in which such service was performed, and any service, of whatever nature, performed after 1954’’ in introductory text. Subsec. (b)(1). Pub. L. 94–455, § 1903(a)(3)(B), struck out ‘‘65 Stat. 119;’’ before ‘‘7 U.S.C. 1461–1468’’. Subsec. (b)(6)(B)(v). Pub. L. 94–455, § 1903(a)(3)(C), sub- stituted ‘‘Secretary of Transportation’’ for ‘‘Secretary of the Treasury’’. Subsec. (b)(8)(B). Pub. L. 94–563, § 1(b), inserted ‘‘or deemed to have been so filed under paragraph (4) or (5) of such subsection’’ after ‘‘filed pursuant to subsection (k) (or the corresponding subsection of prior law)’’ in provisions preceding cl. (i), inserted ‘‘(or deemed to have been filed)’’ after ‘‘filed’’ in cls. (i), (ii), and (iii), and substituted ‘‘is (or is deemed to be) in effect’’ for ‘‘is in effect’’ in provisions following cl. (iii). Subsec. (b)(12)(B). Pub. L. 94–455, § 1906(b)(13)(C), sub- stituted ‘‘to the Secretary of the Treasury’’ for ‘‘to the Secretary’’. Subsec. (b)(20). Pub. L. 94–455, § 1207(e)(1)(A), added par. (20). Subsec. (g)(3). Pub. L. 94–455, § 1903(a)(3)(D), struck out ‘‘46 Stat. 1550, § 3;’’ before ‘‘12 U.S.C. 1141j’’. Subsec. (k)(1). Pub. L. 94–455, § 1903(a)(3)(E), redesig- nated subpar. (G) as (F). Former subpars. (F) and (H), which related to the right of an organization to request before 1960 to have a certificate effective where such certificate was filed after 1955 but prior to the enact- ment of this subparagraph and the right of an organiza- tion to amend a certificate filed before 1966 to make such certificate effective for an earlier date than had been originally established, respectively, were struck out. Subsec. (k)(2). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever ap- pearing. Subsec. (k)(4) to (8). Pub. L. 94–563, § 1(c), added pars. (4) to (8). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his dele- gate’’ after ‘‘Secretary’’ wherever appearing. Subsec. (l)(1). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Subsec. (l)(2). Pub. L. 94–455, § 1903(a)(3)(F), struck out ‘‘, but in no case prior to January 1, 1955’’ after ‘‘speci- fied in the agreement’’. Subsec. (l)(4) to (7), (10). Pub. L. 94–455, § 1906(b)(13)(a), struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wher- ever appearing. Subsec. (m)(1). Pub. L. 94–455, § 1903(a)(3)(G), struck out ‘‘after December 1956’’ after ‘‘include service per- formed’’. 1973—Subsec. (a)(1). Pub. L. 93–233, § 5(b)(2), effective with respect to remuneration paid after 1973, sub- stituted ‘‘$13,200’’ for ‘‘$12,600’’ in two places. Pub. L. 93–233, § 5(d), applicable only with respect to remuneration paid after 1973 (as provided in section 5(e) of Pub. L. 93–233, set out as a note under section 409 of Page 2714 TITLE 26—INTERNAL REVENUE CODE § 3121 Title 42), amended section 203(b)(2)(C) of the Pub. L. 92–336 (set out as 1973 Amendment note hereunder) sub- stituting ‘‘$13,200’’ for ‘‘$12,600’’. Pub. L. 93–66, § 203(b)(2), effective with respect to re- muneration paid after 1973, substituted ‘‘$12,600’’ for ‘‘$12,000’’ in two places. Pub. L. 93–66, § 203(d), applicable only with respect to remuneration paid after, and taxable years beginning after, 1973 (as provided in section 203(e) of Pub. L. 93–66, set out as a note under section 409 of Title 42), amended section 203(b)(2)(C) of Pub. L. 92–336 (set out as 1972 Amendment note hereunder) substituting ‘‘$12,600’’ for ‘‘$12,000’’. 1972—Subsec. (a)(1). Pub. L. 92–336, § 203(b)(2)(A), sub- stituted ‘‘$10,800’’ for ‘‘$9,000’’ in two places. Pub. L. 92–336, § 203(b)(2)(B), effective with respect to remuneration paid after 1973, substituted ‘‘$12,000’’ for ‘‘$10,800’’ in two places. Pub. L. 92–336, § 203(b)(2)(C), effective with respect to remuneration paid after 1974, substituted ‘‘the con- tribution and benefit base (as determined under section 230 of the Social Security Act)’’ for ‘‘$12,000’’ in two places, and ‘‘the calendar year with respect to which such contribution and benefit base is effective’’ for ‘‘any calendar year’’. Subsec. (a)(9). Pub. L. 92–603, § 104(i), substituted uni- form provision of 62 years of age, for separate provi- sions for men and women of 65 and 62 years, respec- tively. Subsec. (a)(14). Pub. L. 92–603, § 122(b), added par. (14). Subsec. (a)(15). Pub. L. 92–603, § 138(b), added par. (15). Subsec. (b)(7)(D). Pub. L. 92–603, § 128(b), added subpar. (D). Subsec. (b)(8)(A). Pub. L. 92–603, § 123(a)(2), inserted provision that this subparagraph shall not apply to service performed by a member of such religious order in the exercise of such duties if an election of coverage under subsec. (r) is in effect with respect to such order, or with respect to the autonomous subdivision thereof to which such member belongs. Subsec. (b)(10)(B). Pub. L. 92–603, § 129(a)(2), inserted provisions relating to service performed in the employ of organizations described in section 509(a)(3) of this title. Subsec. (i)(4). Pub. L. 92–603, § 123(c)(2), added par. (4). Subsec. (r). Pub. L. 92–603, § 123(b), added subsec. (r). 1971—Subsec. (a)(1). Pub. L. 92–5 substituted ‘‘$9,000’’ for ‘‘$7,800’’ in two places. 1969—Subsec. (k)(1)(F)(i), (G)(i), (H)(i). Pub. L. 91–172, § 943(c)(1)–(3), inserted ‘‘or pay tax’’ after ‘‘tax return’’. 1968—Subsec. (a)(1). Pub. L. 90–248, § 108(b)(2), sub- stituted ‘‘$7,800’’ for ‘‘$6,600’’ wherever appearing. Subsec. (a)(13). Pub. L. 90–248, § 504(a), added par. (13). Subsec. (b)(3)(B). Pub. L. 90–248, § 123(b), provided for inclusion of family employment in a private home in definition of ‘‘employment,’’ upon compliance with conditions described in cls. (i) to (iii). Subsec. (b)(6)(C)(iv). Pub. L. 90–248, § 403(i)(1), sub- stituted ‘‘section 5351(2) of title 5, United States Code’’ for ‘‘section 2 of the Act of August 4, 1967’’ and struck out ‘‘; 5 U.S.C., sec. 1052’’ at end of parenthetical text. Subsec. (b)(6)(C)(vi). Pub. L. 90–248, § 403(i)(2), sub- stituted ‘‘subchapter III of chapter 83 of title 5, United States Code,’’ for ‘‘the Civil Service Retirement Act’’. Subsec. (b)(7)(C)(ii). Pub. L. 90–248, § 403(i)(3), sub- stituted ‘‘section 5351(2) of title 5, United States Code’’ for ‘‘section 2 of the Act of August 4, 1947’’ and struck out ‘‘; 5 U.S.C. 1052’’ at end of parenthetical text. 1965—Subsec. (a)(1). Pub. L. 89–97, § 320(b)(2), sub- stituted ‘‘$6,600’’ for ‘‘$4,800’’ wherever appearing. Subsec. (a)(12). Pub. L. 89–97, § 313(c)(3), added par. (12). Subsec. (b)(6)(C)(iv). Pub. L. 89–97, § 311(b)(4), inserted ‘‘, other than as a medical or dental intern or a med- ical or dental resident in training’’. Subsec. (b)(7)(C). Pub. L. 89–97, § 317(b)(3), added sub- par. (C). Subsec. (b)(13). Pub. L. 89–97, § 311(b)(5), struck out from the definition of employment the exclusion of service performed as an intern in the employ of a hos- pital by an individual who has completed a 4 years’ course in a medical school chartered or approved pursu- ant to State law. Subsec. (k)(1)(B)(iii). Pub. L. 89–97, § 316(a)(1), sub- stituted ‘‘such date may not be earlier than the first day of the twentieth’’ for ‘‘, in the case of a certificate filed prior to January 1, 1960, such date may not be ear- lier than January 1, 1956, and in the case of a certifi- cate filed after 1959, such date may not be earlier than the first day of the fourth’’. Subsec. (k)(1)(H). Pub. L. 89–97, § 316(b), added subpar. (H). Subsec. (q). Pub. L. 89–97, § 313(c)(4), added subsec. (q). 1964—Subsec. (a)(11). Pub. L. 88–650 added par. (11). Pub. L. 88–272 substituted ‘‘is a plan described in sec- tion 403(a), or’’ for ‘‘meets the requirements of section 401(a)(3), (4), (5), and (6)’’ in subpar. (5)(B), and added subpar. (5)(C). 1961—Subsec. (b)(19). Pub. L. 87–256 added par. (19). Subsec. (i)(3). Pub. L. 87–293, § 202(a)(1), added par. (3). Subsec. (p). Pub. L. 87–293, § 202(a)(2), added subsec. (p). 1960—Subsec. (b)(3). Pub. L. 86–778, § 104(b), designated existing provisions as cl. (A) and struck out provisions which related to service performed by an individual in the employ of his son or daughter, and added cl. (B). Subsec. (b)(7). Pub. L. 86–778, § 103(n), excluded service in the employ of the Government of Guam or the Gov- ernment of American Samoa or any political subdivi- sion thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby. Subsec. (b)(18). Pub. L. 86–778, § 103(o), added par. (18). Subsec. (e). Pub. L. 86–778, § 103(p), struck out a ref- erence to Hawaii in cl. (1), and included Guam and American Samoa and cls. (1) and (2). Pub. L. 86–624 struck out ‘‘Hawaii,’’ before ‘‘the Dis- trict of Columbia’’, in cl. (1). Subsec. (k)(1)(A). Pub. L. 86–778, § 105(a)(1), (2), struck out ‘‘and that at least two-thirds of its employees con- cur in the filing of the certificate’’ after ‘‘extended to service performed by its employees’’, and substituted ‘‘of each employee (if any) who concurs’’ for ‘‘of each employee who concurs’’. Subsec. (k)(1)(E). Pub. L. 86–778, § 105(a)(3), sub- stituted ‘‘in either group, or may file a separate certifi- cate pursuant to such subparagraph with respect to the employees in each group’’ for ‘‘in one of the groups if at least two-thirds of the employees in such group con- cur in the filing of the certificate. The organization may also file such a certificate with respect to the em- ployees in the other group if at least two-thirds of the employees in such other group concur in the filing of such certificate.’’ 1959—Subsec. (b)(6)(B)(ii). Pub. L. 86–168 substituted ‘‘Federal land bank association’’ for ‘‘national farm loan association’’, and included service in the employ of Federal land banks, Federal intermediate credit banks and banks for cooperatives. Subsec. (e). Pub. L. 86–70 struck out ‘‘Alaska,’’ before ‘‘Hawaii’’. 1958—Subsec. (a)(1). Pub. L. 85–840, § 402(b), sub- stituted ‘‘$4,800’’ for ‘‘$4,200’’ wherever appearing. Subsec. (b)(1). Pub. L. 85–840, § 404(a), struck out pro- visions which excluded from definition of ‘‘employ- ment’’ service performed in connection with the pro- duction or harvesting of any commodity defined as an agricultural commodity in section 1141j of title 12. Subsec. (b)(8)(B). Pub. L. 85–840, § 405(b), made sub- paragraph inapplicable to service performed during the period for which a certificate is in effect if such service is performed by an employee who, after the calendar quarter in which the certificate was filed with respect to a group described in section 321(k)(1)(E) of this title, became a member of such group, and made subpara- graph applicable with respect to service performed by an employee as a member of a group described in sec- tion 3121(k)(1)(E) of this title with respect to which no certificate is in effect. Subsec. (k)(1). Pub. L. 85–840, § 405(a), permitted amendment of the list at any time prior to the expira- Page 2715 TITLE 26—INTERNAL REVENUE CODE § 3121 tion of the twenty-fourth month following the calendar quarter in which the certificate is filed, allowed an or- ganization to provide that the certificate shall be in ef- fect for the period beginning with the first day of any calendar quarter preceding the calendar quarter in which the certificate is filed, except that, in the case of a certificate filed prior to Jan. 1, 1960, such date may not be earlier than Jan. 1, 1956, and in the case of a cer- tificate filed after 1959, such date may not be earlier than the first day of the fourth calendar quarter pre- ceding the quarter in which such certificate is first made the certificate effective in the case of services performed by an employee whose name appears on a supplemental list only with respect to service per- formed by the employee for the period beginning with the first day of the calendar quarter in which the sup- plemental list is filed, required organizations described in subpar. (A) which employ both individuals who are in positions covered by a pension, annuity, retirement, or similar fund or system established by a State or po- litical subdivision thereof and individuals who are not in such positions, to divide their employees into two separate groups, authorized the filing of requests by or- ganizations which filed certificates after 1955 but prior to Aug. 28, 1958, to have such certificates effective, with respect to services of certain individuals, for the period beginning with the first day of any calendar quarter preceding the first calendar quarter for which they are effective and following the last calendar quarter of 1955, and provided for the due date and payment of tax for certain calendar quarters and for the expiration of the statutory period of assessment. Subsec. (l)(3). Pub. L. 85–866 substituted ‘‘by’’ for ‘‘be’’ in heading. 1956—Subsec. (a)(8)(B). Act Aug. 1, 1956, ch. 836, § 201(h)(1), included within definition of wages cash re- muneration of $150 or more, and cash remuneration computed on a time basis where the employee performs agricultural labor for the employer on 20 days or more during the calendar year. Subsec. (a)(9). Act Aug. 1, 1956, ch. 836, § 201(b), ex- cluded payments made to a woman after she attains the age of 62. Subsec. (b)(1)(B). Act Aug. 1, 1956, ch. 836, § 201(c), ex- cepted from term ‘‘employment’’ services performed by foreign agricultural workers lawfully admitted from any foreign country or possession thereof, on a tem- porary basis to perform agricultural labor. Subsec. (b)(6)(B)(ii). Act Aug. 1, 1956, ch. 836, § 201(d)(1), included service performed in the employ of a Federal Home Loan Bank. Subsec. (b)(6)(C)(vi). Act Aug. 1, 1956, ch. 836, § 201(d)(2), substituted ‘‘Civil Service Retirement Act’’ for ‘‘Civil Service Retirement Act of 1930’’, and inserted ‘‘(other than the retirement system of the Tennessee Valley Authority)’’ after ‘‘retirement system’’. Subsec. (b)(16), (17). Act Aug. 1, 1956, ch. 836, §§ 201(e)(1), 121d, added pars. (16) and (17). Subsec. (i). Act Aug. 1, 1956, ch. 837, § 410, designated existing provisions as par. (1) and added par. (2). Subsec. (k)(1). Act Aug. 1, 1956, ch. 836, § 201(k), (l), in- serted ‘‘or at any time prior to January 1, 1959, which- ever is the later’’ after ‘‘the certificate is in effect’’, and substituted ‘‘the first day of the calendar quarter in which such certificate is filed or the first day of the succeeding calendar quarter, as may be specified in the certificate,’’ for ‘‘the first day following the close of the calendar quarter in which such certificate is filed,’’. Subsec. (l)(6). Act Aug. 1, 1956, ch. 836, § 103(j), inserted reference to the Federal Disability Insurance Trust Fund. Subsec. (l)(8)(A). Act Aug. 1, 1956, ch. 836, § 201(j), sub- stituted ‘‘not less than 20 percent’’ for ‘‘more than 50 percent’’. Subsecs. (m), (n). Act Aug. 1, 1956, ch. 837, § 411(a), added subsecs. (m) and (n). Subsec. (o). Act Aug. 1, 1956, ch. 836, § 201(h)(2), added subsec. (o). 1954—Subsec. (a)(1). Act Sept. 1, 1954, § 204(a), sub- stituted ‘‘$4,200’’ for ‘‘$3,600’’ wherever appearing. Subsec. (a)(7)(B). Act Sept. 1, 1954, § 204(b)(1), made coverage of domestic service dependent solely on re- ceipt of $50 in cash wages in a calendar quarter by an employee from an employer for such service. Subsec. (a)(7)(C). Act Sept. 1, 1954, § 204(b)(2), added subpar. (C). Subsec. (a)(8). Act Sept. 1, 1954, § 204(b)(3), designated existing provisions as subpar. (A) and added subpar. (B). Subsec. (b)(1). Act Sept. 1, 1954, § 205(a), made cov- erage of agricultural labor depend solely on the pay- ment of cash remuneration of $100 or more per year, thereby eliminating the need for an agricultural la- borer to have served a qualifying calendar quarter and to have worked on a full time basis for 60 days during a succeeding calendar quarter and to have received $50 or more for his labor during such succeeding calendar quarter, removed the specific exception from employ- ment of services performed in connection with the gin- ning of cotton, and added an exception for services per- formed by West Indian agricultural workers lawfully admitted to the United States on a temporary basis. Subsec. (b)(3). Act Sept. 1, 1954, § 205(b), struck out par. (3) and redesignated pars. (4) to (14) as (3) to (13), respectively. Subsec. (b)(4). Act Sept. 1, 1954, § 205(c), amended par. (4), as redesignated, to make the exception with respect to services on non-American vessels or aircraft applica- ble only if the individual is not a United States citizen or the employer is not an American employer. Subsec. (b)(6)(B). Act Sept. 1, 1954, § 205(d)(1)(A), amended par. (6), as redesignated, by inserting in sub- par. (B) ‘‘by an individual’’ after ‘‘service is performed’’ and ‘‘and if such service is covered by a retirement sys- tem established by such instrumentality’’ after ‘‘De- cember 31, 1950’’. Subsec. (b)(6)(B)(v). Act Sept. 1, 1954, § 205(d)(1)(B), amended par. (6), as redesignated, by adding cl. (v) to subpar. (B). Subsec. (b)(6)(C). Act Sept. 1, 1954, § 205(d)(2), struck out exception from coverage for services in the fol- lowing categories: temporary employees in the Post Of- fice Department field service; temporary census taking employees of the Bureau of the Census; Federal em- ployees paid on a contract or fee basis; Federal employ- ees receiving compensation of $12 a year or less; certain consular agents; individuals employed under Federal unemployment relief programs; and members of State, county, or community committees under the Com- modity Stabilization Service and similar bodies, unless such bodies are composed exclusively of full-time Fed- eral employees, and limited the exclusion of inmates or patients of United States institutions to inmates of penal institutions. Subsec. (b)(14) to (17). Act Sept. 1, 1954, § 205(e), struck out par. (15) and redesignated pars. (16) and (17) as (14) and (15), respectively. Subsec. (c). Act Sept. 1, 1954, § 205(b), substituted ‘‘subsection (b)(9)’’ for ‘‘subsection (b)(10)’’. Subsec. (d)(3)(C). Act Sept. 1, 1954, § 206(a), struck out requirement that performance of services of homeworkers be subject to State licensing require- ments. Subsec. (k)(1). Act Sept. 1, 1954, §§ 205(b), 207, sub- stituted ‘‘(b)(8)(B)’’ for ‘‘(b)(9)(B)’’ and provided that the list accompanying any certificate filed by a non- profit organization with respect to its lay employees may be amended only within a period of two years after the certificate takes effect and provided that a supple- mental list filed after the first month following the first calendar quarter for which the certificate is in ef- fect shall be in effect only as to those services per- formed by an individual on the list which are performed by him after the calendar quarter in which the supple- mental list is filed. Subsec. (l). Act Sept. 1, 1954, § 209, added subsec. (l). Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘United States magistrate judge’’ substituted for ‘‘United States magistrate’’ in subsec. (b)(5)(E) pursu- Page 2716 TITLE 26—INTERNAL REVENUE CODE § 3121 ant to section 321 of Pub. L. 101–650, set out as a note under section 631 of Title 28, Judiciary and Judicial Procedure. Reference to Reserve Corps of the Public Health Serv- ice deemed to be a reference to the Ready Reserve Corps, see section 204(c)(3) of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 2019 AMENDMENT Amendment by Pub. L. 116–94 applicable to taxable years beginning after Dec. 31, 2019, see section 301(d) of Pub. L. 116–94, set out as a note under section 139B of this title. EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title. EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amend- ment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of this title. Pub. L. 110–245, title I, § 115(d), June 17, 2008, 122 Stat. 1637, provided that: ‘‘The amendments made by this section [amending this section, sections 3306 and 3401 of this title, and section 409 of Title 42, The Public Health and Welfare] shall take effect as if included in section 5 of the Mortgage Forgiveness Debt Relief Act of 2007 [Pub. L. 110–142].’’ Pub. L. 110–245, title III, § 302(c), June 17, 2008, 122 Stat. 1648, provided that: ‘‘The amendment made by this section [amending this section and section 410 of Title 42, The Public Health and Welfare] shall apply to services performed in calendar months beginning more than 30 days after the date of the enactment of this Act [June 17, 2008].’’ EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–172 effective as if included in the provision of the Economic Growth and Tax Re- lief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 8(b) of Pub. L. 110–172, set out as a note under section 402 of this title. EFFECTIVE DATE OF 2004 AMENDMENTS Amendment by Pub. L. 108–375 applicable to travel benefits provided after Oct. 28, 2004, see section 585(b)(3) of Pub. L. 108–375, set out as a note under section 134 of this title. Amendment by section 251(a)(1)(A) of Pub. L. 108–357 applicable to stock acquired pursuant to options exer- cised after Oct. 22, 2004, see section 251(d) of Pub. L. 108–357, set out as a note under section 421 of this title. Amendment by section 320(b)(1) of Pub. L. 108–357 ap- plicable to amounts received by an individual in tax- able years beginning after Dec. 31, 2003, see section 320(c) of Pub. L. 108–357, set out as a note under section 108 of this title. Amendment by section 802(c)(1) of Pub. L. 108–357 ef- fective Mar. 4, 2003, see section 802(d) of Pub. L. 108–357, set out as an Effective Date note under section 4985 of this title. EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–121 applicable to taxable years beginning after Dec. 31, 2002, see section 106(c) of Pub. L. 108–121, set out as a note under section 134 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–277, div. A, § 101(h) [title VIII, § 805], Oct. 21, 1998, 112 Stat. 2681–480, 2681–538, provided that: ‘‘Ex- cept as otherwise specifically provided, this title [amending this section and section 410 of Title 42, The Public Health and Welfare, and amending provisions set out as a note under this section] and the amend- ments made by this title shall take effect as if included in the enactment of title XI of the Balanced Budget Act of 1997 [title XI of Pub. L. 105–33, see Effective Date of 1997 Amendment note below].’’ EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–33, title XI, § 11246(b)(4), formerly § 11246(b)(3), Aug. 5, 1997, 111 Stat. 756, renumbered § 11246(b)(4), by Pub. L. 105–277, div. A, § 101(h) [title VIII, § 802(a)(1)], Oct. 21, 1998, 112 Stat. 2681–480, 2681–532, provided that: ‘‘The amendments made by this sub- section [amending this section and section 410 of Title 42, The Public Health and Welfare] shall apply with re- spect to all months beginning after the date on which the Director of the Office of Personnel Management issues regulations to carry out section 11–1726, District of Columbia Code (as amended by paragraph (1)).’’ EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–188, title I, § 1116(a)(3), Aug. 20, 1996, 110 Stat. 1762, provided that: ‘‘(A) IN GENERAL.—The amendments made by this subsection [amending this section, section 6050A of this title, and section 410 of Title 42, The Public Health and Welfare] shall apply to remuneration paid— ‘‘(i) after December 31, 1994, and ‘‘(ii) after December 31, 1984, and before January 1, 1995, unless the payor treated such remuneration (when paid) as being subject to tax under chapter 21 of the Internal Revenue Code of 1986. ‘‘(B) REPORTING REQUIREMENT.—The amendment made by paragraph (1)(C) [amending section 6050A of this title] shall apply to remuneration paid after December 31, 1996.’’ Amendment by section 1421(b)(8)(A) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104–188, set out as a note under section 72 of this title. Pub. L. 104–188, title I, § 1458(c)(2), Aug. 20, 1996, 110 Stat. 1820, provided that: ‘‘The amendments made by subsection (b) [amending this section and section 409 of Title 42, The Public Health and Welfare] shall apply to remuneration paid after December 31, 1996.’’ EFFECTIVE DATE OF 1994 AMENDMENTS Amendment by section 2(a)(1)(A), (B) of Pub. L. 103–387 applicable to remuneration paid after Dec. 31, 1993, and amendment by section 2(a)(1)(C) of Pub. L. 103–387 applicable to services performed after Dec. 31, 1994, see section 2(a)(3) of Pub. L. 103–387, set out as a note under section 3102 of this title. Amendment by section 108(h)(2) of Pub. L. 103–296 ef- fective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare. Amendment by section 303(a)(2), (b)(2) of Pub. L. 103–296 applicable with respect to service performed on or after Jan. 1, 1995, see section 303(e) of Pub. L. 103–296, set out as a note under section 410 of Title 42. Amendment by section 319(a)(1), (5) of Pub. L. 103–296 applicable with respect to service performed after cal- endar quarter following calendar quarter in which Aug. 15, 1994, occurs, see section 319(c) of Pub. L. 103–296, set out as a note under section 1402 of this title. Amendment by section 320(a)(1)(C) of Pub. L. 103–296 effective with calendar quarter following Aug. 15, 1994, see section 320(c) of Pub. L. 103–296, set out as a note under section 871 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 applicable to 1994 and later calendar years, see section 13207(e) of Pub. L. 103–66, set out as a note under section 1402 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–318 applicable to distribu- tions after Dec. 31, 1992, see section 521(e) of Pub. L. 102–318, set out as a note under section 402 of this title. Page 2717 TITLE 26—INTERNAL REVENUE CODE § 3121 EFFECTIVE DATE OF 1990 AMENDMENT Amendment by section 11331(a) of Pub. L. 101–508 ap- plicable to 1991 and later calendar years, see section 11331(e) of Pub. L. 101–508, set out as a note under sec- tion 1402 of this title. Pub. L. 101–508, title XI, § 11332(d), Nov. 5, 1990, 104 Stat. 1388–470, provided that: ‘‘The amendments made by this section [amending this section and sections 410 and 418 of Title 42, The Public Health and Welfare] shall apply with respect to service performed after July 1, 1991.’’ EFFECTIVE DATE OF 1989 AMENDMENTS Amendment by Pub. L. 101–239 applicable with re- spect to any agreement in effect under section 3121(l) of this title on or after June 15, 1989, with respect to which no notice of termination is in effect on such date, see section 10201(c) of Pub. L. 101–239, set out as a note under section 406 of this title. Amendment by Pub. L. 101–140 effective as if included in section 1151 of Pub. L. 99–514, see section 203(c) of Pub. L. 101–140, set out as a note under section 79 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title I, § 1011B(a)(22)(F), Nov. 10, 1988, 102 Stat. 3486, provided that: ‘‘The amendments made by this paragraph [amending this section, sections 3231, 3306, and 3401 of this title, and section 409 of Title 42, The Public Health and Welfare] shall not apply to any individual who separated from service with the em- ployer before January 1, 1989.’’ Pub. L. 100–647, title I, § 1018(r)(2)(B), Nov. 10, 1988, 102 Stat. 3586, provided that: ‘‘The amendment made by subparagraph (A) [amending this section] shall apply to services performed after March 31, 1986.’’ Amendment by sections 1001(d)(2)(C)(i), (g)(4)(B)(i), 1011(e)(8), 1011B(a)(23)(A), and 1018(u)(35) of Pub. L. 100–647 effective, except as otherwise provided, as if in- cluded in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title. Amendment by section 3043(c)(2) of Pub. L. 100–647 ap- plicable to all periods beginning before, on, or after Nov. 10, 1988, with no inference created as to existence or nonexistence or scope of any exemption from tax for income derived from fishing rights secured as of Mar. 17, 1988, by any treaty, law, or Executive Order, see sec- tion 3044 of Pub. L. 100–647, set out as an Effective Date note under section 7873 of this title. Pub. L. 100–647, title VIII, § 8015(b)(3), Nov. 10, 1988, 102 Stat. 3792, provided that: ‘‘The amendments made by this subsection [amending this section and section 410 of Title 42, The Public Health and Welfare] shall apply as if such amendments had been included or reflected in section 304 of the Federal Employees’ Retirement System Act of 1986 (100 Stat. 606) [Pub. L. 99–335] at the time of its enactment [June 6, 1986].’’ Pub. L. 100–647, title VIII, § 8015(c)(3), Nov. 10, 1988, 102 Stat. 3792, provided that: ‘‘The amendments made by this subsection [amending this section and section 410 of Title 42] shall apply to any individual only upon the performance by such individual of service described in subparagraph (C), (D), (E), (F), (G), or (H) of section 210(a)(5) of the Social Security Act (42 U.S.C. 410(a)(5)) on or after the date of the enactment of this Act [Nov. 10, 1988].’’ Amendment by section 8016(a)(3)(A), (4)(A), (C) of Pub. L. 100–647 effective Nov. 10, 1988, except that any amendment to a provision of a particular Public Law which is referred to by its number, or to a provision of the Social Security Act [42 U.S.C. 301 et seq.], or to this title as added or amended by a provision of a particular Public Law which is so referred to, effective as though included or reflected in the relevant provisions of that Public Law at the time of its enactment, see section 8016(b) of Pub. L. 100–647, set out as a note under sec- tion 3111 of this title. Pub. L. 100–647, title VIII, § 8017(c), Nov. 10, 1988, 102 Stat. 3794, provided that: ‘‘The amendments made by this section [amending this section and section 409 of Title 42, The Public Health and Welfare] shall take ef- fect as if included in the amendments made by section 9002 of the Omnibus Budget Reconciliation Act of 1987 [Pub. L. 100–203].’’ EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–203, title IX, § 9001(d), Dec. 22, 1987, 101 Stat. 1330–286, provided that: ‘‘The amendments made by this section [amending this section and sections 409, 410, and 429 of Title 42, The Public Health and Welfare] shall apply with respect to remuneration paid after De- cember 31, 1987.’’ Pub. L. 100–203, title IX, § 9002(c), Dec. 22, 1987, 101 Stat. 1330–287, provided that: ‘‘The amendments made by this section [amending this section and section 409 of Title 42] shall apply with respect to remuneration for agricultural labor paid after December 31, 1987.’’ Pub. L. 100–203, title IX, § 9003(b), Dec. 22, 1987, 101 Stat. 1330–287, as amended by Pub. L. 100–647, title VIII, § 8013(a), Nov. 10, 1988, 102 Stat. 3789, provided that: ‘‘The amendments made by subsection (a) [amending this section and section 409 of Title 42] shall apply with respect to group-term life insurance coverage in effect after December 31, 1987, except that such amendments shall not apply with respect to payments by the em- ployer (or a successor of such employer) for group-term life insurance for such employer’s former employees who separated from employment with the employer on or before December 31, 1988, to the extent that such payments are not for coverage for any such employee for any period for which such employee is employed by such employer (or a successor of such employer) after the date of such separation.’’ [Pub. L. 100–647, title VIII, § 8013(b), Nov. 10, 1988, 102 Stat. 3790, provided that: ‘‘The amendment made by subsection (a) [amending section 9003(b) of Pub. L. 100–203, set out above] shall apply as if such amendment had been included or reflected in section 9003(b) of the Omnibus Budget Reconciliation Act of 1987 [Pub. L. 100–203] at the time of its enactment.’’] Pub. L. 100–203, title IX, § 9004(c), Dec. 22, 1987, 101 Stat. 1330–288, provided that: ‘‘The amendments made by this section [amending this section and section 410 of Title 42] shall apply with respect to to remuneration paid after December 31, 1987.’’ Pub. L. 100–203, title IX, § 9005(c), Dec. 22, 1987, 101 Stat. 1330–288, provided that: ‘‘The amendments made by this section [amending this section and section 410 of Title 42] shall apply with respect to to remuneration paid after December 31, 1987.’’ Amendment by section 9006(a), (b)(2) of Pub. L. 100–203 applicable with respect to tips received and wages paid on or after Jan. 1, 1988, see section 9006(c) of Pub. L. 100–203, set out as a note under section 3111 of this title. EFFECTIVE DATE OF 1986 AMENDMENTS Amendment by section 122(e)(1) of Pub. L. 99–514 ap- plicable to prizes and awards granted after Dec. 31, 1986, see section 151(c) of Pub. L. 99–514, set out as a note under section 1 of this title. Amendment by section 1108(g)(7) of Pub. L. 99–514 ap- plicable to years beginning after Dec. 31, 1986, see sec- tion 1108(h) of Pub. L. 99–514, set out as a note under section 219 of this title. Amendment by section 1151(d)(2)(A) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1983, see section 1151(k)(5) of Pub. L. 99–514, set out as a note under section 79 of this title. Amendment by section 1882(c) of Pub. L. 99–514 effec- tive, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title. Pub. L. 99–514, title XVIII, § 1895(b)(18)(C), Oct. 22, 1986, 100 Stat. 2935, provided that: ‘‘The amendments Page 2718 TITLE 26—INTERNAL REVENUE CODE § 3121 made by this paragraph [amending this section and sec- tion 410 of Title 42, The Public Health and Welfare] shall apply to services performed after March 31, 1986.’’ Amendment by Pub. L. 99–509, except as otherwise provided, effective with respect to payments due with respect to wages paid after Dec. 31, 1986, including wages paid after such date by a State (or political sub- division thereof) that modified its agreement pursuant to section 418(e)(2) of Title 42, see section 9002(d) of Pub. L. 99–509, set out as a note under section 418 of Title 42. Amendment by section 12112(b) of Pub. L. 99–272 effec- tive with respect to service performed after Dec. 31, 1983, see section 12112(c) of Pub. L. 99–272, set out as a note under section 409 of Title 42. Pub. L. 99–272, title XIII, § 13205(d)(1), Apr. 7, 1986, 100 Stat. 318, provided that: ‘‘The amendments made by subsection (a) [amending this section and sections 1402, 3122, 3125, 6205, and 6413 of this title] shall apply to serv- ices performed after March 31, 1986.’’ EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–221 applicable to any re- turn to performance of service in employ of United States, or of an instrumentality thereof, after 1983, see section 3(c) of Pub. L. 99–221, set out as a note under section 410 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by section 67(c) of Pub. L. 98–369 applica- ble to payments under agreements entered into or re- newed after June 14, 1984, in taxable years ending after such date, with contracts entered into before June 15, 1984, which are amended after June 14, 1984, in any sig- nificant relevant aspect to be treated as a contract en- tered into after June 14, 1984, see section 67(e) of Pub. L. 98–369, set out as an Effective Date note under sec- tion 280G of this title. Amendment by section 491(d)(36) of Pub. L. 98–369 ap- plicable to obligations issued after Dec. 31, 1983, see sec- tion 491(f)(1) of Pub. L. 98–369, set out as a note under section 62 of this title. Amendment by section 531(d)(1)(A) of Pub. L. 98–369 effective Jan. 1, 1985, see section 531(h) of Pub. L. 98–369, set out as an Effective Date note under section 132 of this title. Amendment by section 2601(b) of Pub. L. 98–369 effec- tive with respect to service performed after Dec. 31, 1983, with enumerated exceptions, see section 2601(f) of Pub. L. 98–369, set out as a note under section 410 of Title 42, The Public Health and Welfare. Amendment by section 2603(a)(2), (b) of Pub. L. 98–369 applicable to service performed after Dec. 31, 1983, see section 2603(e) of Pub. L. 98–369, set out as a note under section 410 of Title 42. Pub. L. 98–369, div. B, title VI, § 2661(o)(3), July 18, 1984, 98 Stat. 1159, provided that the amendment made by that section is effective Jan. 1, 1984. Amendment by section 2663 of Pub. L. 98–369 effective July 18, 1984, but not to be construed as changing or af- fecting any right, liability, status or interpretation which existed (under the provisions of law involved) be- fore that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of Title 42. EFFECTIVE DATE OF 1983 AMENDMENT Pub. L. 98–21, title I, § 101(d), Apr. 20, 1983, 97 Stat. 70, as amended by Pub. L. 98–369, div. B, title VI, § 2662(a), July 18, 1984, 98 Stat. 1159, provided that: ‘‘The amend- ments made by this section [amending this section and sections 409 and 410 of Title 42, The Public Health and Welfare] shall be effective with respect to service per- formed after December 31, 1983.’’ Pub. L. 98–21, title I, § 102(c), Apr. 20, 1983, 97 Stat. 71, provided that: ‘‘The amendments made by the pre- ceding provisions of this section [amending this section and section 410 of Title 42] shall be effective with re- spect to service performed after December 31, 1983 (but the provisions of sections 2 and 3 of Public Law 94–563 [set out below] and section 312(c) of Public Law 95–216 [set out below] shall continue in effect, to the extent applicable, as though such amendments had not been made).’’ Amendment by section 321 of Pub. L. 98–21, applicable to agreements entered into after Apr. 20, 1983, except that at the election of any American employer such amendment shall also apply to any agreement entered into on or before Apr. 20, 1983, see section 321(f) of Pub. L. 98–21 set out as a note under section 406 of this title. Pub. L. 98–21, title III, § 322(c), Apr. 20, 1983, 97 Stat. 121, provided that: ‘‘The amendments made by this sec- tion [amending this section, section 1402 of this title, and sections 410 and 411 of Title 42, The Public Health and Welfare] shall be effective for taxable years begin- ning on or after the date of the enactment of this Act [Apr. 20, 1983].’’ Pub. L. 98–21, title III, § 323(c)(1), Apr. 20, 1983, 97 Stat. 121, provided that: ‘‘The amendments made by sub- section (a) [amending this section and section 410 of Title 42] shall apply to remuneration paid after Decem- ber 31, 1983.’’ Pub. L. 98–21, title III, § 324(d), Apr. 20, 1983, 97 Stat. 125, as amended by Pub. L. 98–369, div. B, title VI, § 2662(f)(2), July 18, 1984, 98 Stat. 1159; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) Except as otherwise provided in this subsection, the amendments made by this section [amending this section, section 3306 of this title, and sections 403 and 409 of Title 42 and enacting provisions set out as a note under section 3306 of this title] shall apply to remu- neration paid after December 31, 1983. For purposes of applying such amendments to remuneration paid after December 31, 1983, which would have been taken into account before January 1, 1984, if such amendments had applied to periods before January 1, 1984, such remu- neration shall be taken into account when paid (or, at the election of the payor, at the time which would be appropriate if such amendments had applied). ‘‘(2) Except as otherwise provided in this subsection, the amendments made by subsection (b) [amending sec- tion 3306 of this title and enacting provisions set out as a note under section 3306 of this title] shall apply to re- muneration paid after December 31, 1984. For purposes of applying such amendments to remuneration paid after December 31, 1984, which would have been taken into account before January 1, 1985, if such amend- ments had applied to periods before January 1, 1985, such remuneration shall be taken into account when paid (or, at the election of the payor, at the time which would be appropriate if such amendments had applied). ‘‘(3) The amendments made by this section shall not apply to employer contributions made during 1984 and attributable to services performed during 1983 under a qualified cash or deferred arrangement (as defined in section 401(k) of the Internal Revenue Code of 1986 [for- merly I.R.C. 1954]) if, under the terms of such arrange- ment as in effect on March 24, 1983— ‘‘(A) the employee makes an election with respect to such contribution before January 1, 1984, and ‘‘(B) the employer identifies the amount of such contribution before January 1, 1984. In the case of the amendments made by subsection (b), the preceding sentence shall be applied by substituting ‘1985’ for ‘1984’ each place it appears and by substituting ‘during 1984’ for ‘during 1983’. ‘‘(4) In the case of an agreement in existence on March 24, 1983, between a nonqualified deferred com- pensation plan (as defined in section 3121(v)(2)(C) of the Internal Revenue Code of 1986, as added by this section) and an individual— ‘‘(A) the amendments made by this section (other than subsection (b)) shall apply with respect to serv- ices performed by such individual after December 31, 1983, and ‘‘(B) the amendments made by subsection (b) shall apply with respect to services performed by such indi- vidual after December 31, 1984. The preceding sentence shall not apply in the case of a plan to which section 457(a) of such Code applies. For purposes of this paragraph, any plan or agreement to Page 2719 TITLE 26—INTERNAL REVENUE CODE § 3121 make payments described in paragraph (2), (3), or (13)(A)(iii) of section 3121(a) of such Code (as in effect on the day before the date of the enactment of this Act [Apr. 20, 1983]) shall be treated as a nonqualified de- ferred compensation plan.’’ Pub. L. 98–21, title III, § 327(d), Apr. 20, 1983, 97 Stat. 127, as amended by Pub. L. 98–369, div. B, title VI, § 2662(g), July 18, 1984, 98 Stat. 1160; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) The amendment made by subsection (a) [amend- ing this section and section 409 of Title 42] shall apply to remuneration paid after December 31, 1983. ‘‘(2) The amendments made by subsection (b) and sub- section (c)(4) [amending this section, section 3306 of this title, and section 409 of Title 42] shall apply to re- muneration (other than amounts excluded under sec- tion 119 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) paid after March 4, 1983, and to any such re- muneration paid on or before such date which the em- ployer treated as wages when paid. ‘‘(3) The amendments made by paragraphs (1), (2), and (3) of subsection (c) [amending section 3306 of this title] shall apply to remuneration paid after December 31, 1984.’’ Pub. L. 98–21, title III, § 328(d), Apr. 20, 1983, 97 Stat. 128, provided that: ‘‘(1) Except as provided in paragraph (2), the amend- ments made by this section [amending this section, section 3306 of this title, and section 409 of Title 42] shall apply to remuneration paid after December 31, 1983. ‘‘(2) The amendments made by subsection (c) [amend- ing section 3306 of this title] shall apply to remunera- tion paid after December 31, 1984.’’ EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–248, title II, § 278(c)(1), Sept. 3, 1982, 96 Stat. 562, provided that: ‘‘The amendments made by sub- section (a) [amending this section and sections 1402 and 3122 of this title] shall apply to remuneration paid after December 31, 1982.’’ EFFECTIVE DATE OF 1981 AMENDMENTS Pub. L. 97–123, § 3(g), Dec. 29, 1981, 95 Stat. 1663, pro- vided that: ‘‘(1) Except as provided in paragraph (2), this section (and the amendments made by this section) [amending this section, section 3231 of this title, and section 409 of Title 42, The Public Health and Welfare, and enacting provisions set out as notes under this section and sec- tion 3101 of this title] shall apply to remuneration paid after December 31, 1981. ‘‘(2) This section (and the amendments made by this section) shall not apply with respect to any payment made by a third party to an employee pursuant to a contractual relationship of an employer with such third party entered into before December 14, 1981, if— ‘‘(A) coverage by such third party for the group in which such employee falls ceases before March 1, 1982, and ‘‘(B) no payment by such third party is made to such employee under such relationship after Feb- ruary 28, 1982.’’ Amendment by Pub. L. 97–34 applicable to remunera- tion paid after Dec. 31, 1981, see section 124(f) of Pub. L. 97–34, set out as a note under section 21 of this title. EFFECTIVE DATE OF 1980 AMENDMENTS Pub. L. 96–499, title XI, § 1141(c), Dec. 5, 1980, 94 Stat. 2694, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [amending this section, section 3306 of this title, and section 409 of Title 42, The Public Health and Welfare] shall apply with respect to remuneration paid after December 31, 1980. ‘‘(2) EXCEPTION FOR STATE AND LOCAL GOVERNMENTS.— ‘‘(A) The amendments made by this section (insofar as they affect the application of section 218 of the So- cial Security Act [42 U.S.C. 418]) shall not apply to any payment made before January 1, 1984, by any governmental unit for positions of a kind for which all or a substantial portion of the social security em- ployee taxes were paid by such governmental unit (without deduction from the remuneration of the em- ployee) under the practices of such governmental unit in effect on October 1, 1980. ‘‘(B) For purposes of subparagraph (A), the term ‘social security employee taxes’ means the amount required to be paid under section 218 of the Social Se- curity Act [42 U.S.C. 418] as the equivalent of the taxes imposed by section 3101 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]. ‘‘(C) For purposes of subparagraph (A), the term ‘Governmental unit’ means a State or political sub- division thereof within the meaning of section 218 of the Social Security Act [42 U.S.C. 418].’’ Pub. L. 96–222, title I, § 101(b)(1)(E), Apr. 1, 1980, 94 Stat. 205, provided that: ‘‘The amendments made by subparagraph (B) of subsection (a)(10) [amending this section and section 3306 of this title] shall apply to pay- ments made on or after January 1, 1979.’’ EFFECTIVE DATE OF 1978 AMENDMENTS Amendment by Pub. L. 95–600 applicable with respect to taxable years beginning after Dec. 31, 1978, see sec- tion 164(d) of Pub. L. 95–600, set out as an Effective Date note under section 127 of this title. Pub. L. 95–472, § 3(d), Oct. 17, 1978, 92 Stat. 1333, pro- vided that: ‘‘The amendments made by this section [amending this section, section 3306 of this title, and section 409 of Title 42, The Public Health and Welfare] shall apply with respect to taxable years beginning after December 31, 1976.’’ EFFECTIVE DATE OF 1977 AMENDMENT Pub. L. 95–216, title III, § 312(h), Dec. 20, 1977, 91 Stat. 1535, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The amendments made by subsections (a), (b), (d), (e), (f), and (g) of this section [amending this section and provisions set out below] shall be effective as though they had been included as a part of the amendments made to section 3121(k) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] by the first section of Public Law 94–563 (or, in the case of the amendments made by subsection (e), as a part of section 3 of such Public Law).’’ Pub. L. 95–216, title III, § 314(c), Dec. 20, 1977, 91 Stat. 1536, provided that: ‘‘The amendments made by this section [amending this section and section 3306 of this title] shall apply with respect to wages paid after De- cember 31, 1978.’’ Amendment by section 315(a) of Pub. L. 95–216 appli- cable with respect to wages paid with respect to em- ployment performed in months after Dec. 1977, see sec- tion 315(c) of Pub. L. 95–216, set out as a note under sec- tion 3111 of this title. Pub. L. 95–216, title III, § 356(e), Dec. 20, 1977, 91 Stat. 1556, provided that: ‘‘The amendments made by this section [amending this section] shall apply with re- spect to remuneration paid and services rendered after December 31, 1977.’’ EFFECTIVE DATE OF 1976 AMENDMENTS Pub. L. 94–563, § 1(d), Oct. 19, 1976, 90 Stat. 2658, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The amendments made by this section [amending this section and section 410 of Title 42, The Public Health and Welfare], shall apply with re- spect to services performed after 1950, to the extent covered by waiver certificates filed or deemed to have been filed under section 3121(k)(4) or (5) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by such amendments).’’ Pub. L. 94–455, title XII, § 1207(f)(4), Oct. 4, 1976, 90 Stat. 1708, as amended by Pub. L. 95–600, title VII, § 701(z)(1), Nov. 6, 1978, 92 Stat. 2921; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: Page 2720 TITLE 26—INTERNAL REVENUE CODE § 3121 ‘‘(A) The amendments made by paragraphs (1)(A) and (2)(A) of subsection (e) [amending this section and sec- tion 410 of Title 42, The Public Health and Welfare] shall apply to services performed after December 31, 1954. The amendments made by paragraphs (1)(B), (1)(C), and (2)(B) of such subsection [amending sections 1401 and 3401 of this title and section 411 of Title 42] shall apply to taxable years ending after December 31, 1954. The amendments made by paragraph (3) of such subsection [enacting section 6050A and amending sec- tion 6652 of this title] shall apply to calendar years be- ginning after the date of the enactment of this Act [Oct. 4, 1976]. ‘‘(B) Notwithstanding subparagraph (A), if the owner or operator of any boat treated a share of the boat’s catch of fish or other aquatic animal life (or a share of the proceeds therefrom) received by an individual after December 31, 1954, and before the date of the enactment of this act [Oct. 4, 1976] for services performed by such individual after December 31, 1954, on such boat as being subject to the tax under chapter 21 of the Inter- nal Revenue Code of 1986 [formerly I.R.C. 1954], then the amendments made by paragraphs (1)(A) and (B) and (2) of subsection (c) shall not apply with respect to such services performed by such individual (and the share of the catch, or the proceeds therefrom, received by him for such services).’’ [Pub. L. 95–600, title VII, § 701(z)(2), Nov. 6, 1978, 92 Stat. 2921, provided that: ‘‘The amendments made by paragraph (1) [amending section 1207(f)(4) of Pub. L. 94–455, set out above] shall take effect on October 4, 1976.’’] Amendment by section 1903 of Pub. L. 94–455 applica- ble with respect to wages paid after Dec. 31, 1976, see section 1903(d) of Pub. L. 94–455, set out as a note under section 3101 of this title. EFFECTIVE DATE OF 1973 AMENDMENTS Amendment by Pub. L. 93–233 applicable only with re- spect to remuneration paid after, and taxable years be- ginning after, 1973, see section 5(e) of Pub. L. 93–233, set out as a note under section 409 of Title 42, The Public Health and Welfare. Amendment by Pub. L. 93–66 applicable only with re- spect to remuneration paid after, and taxable years be- ginning after, 1973, see section 203(e) of Pub. L. 93–66, set out as a note under section 409 of Title 42. EFFECTIVE DATE OF 1972 AMENDMENTS Amendment by section 104(i) of Pub. L. 92–603 applica- ble only with respect to payments after 1974, see sec- tion 104(j) of Pub. L. 92–603, set out as a note under sec- tion 414 of Title 42, The Public Health and Welfare. Amendment by sections 122(b) and 138(b) of Pub. L. 92–603 applicable in the case of any payment made after December 1972, see sections 122(c) and 138(c) of Pub. L. 92–603, set out as notes under section 409 of Title 42. Amendment by section 128(b) of Pub. L. 92–603 appli- cable with respect to service performed on and after first day of calendar quarter which begins on or after Oct. 30, 1972, see section 128(c) of Pub. L. 92–603, set out as a note under section 410 of Title 42. Amendment by section 129(a)(2) of Pub. L. 92–603 ap- plicable to services performed after Dec. 31, 1972, see section 129(b) of Pub. L. 92–603, set out as a note under section 410 of Title 42. Amendment by Pub. L. 92–336 applicable only with re- spect to remuneration paid after December 1972, see section 203(c) of Pub. L. 92–336, set out as a note under section 409 of Title 42. EFFECTIVE DATE OF 1971 AMENDMENT Amendment by Pub. L. 92–5 applicable only with re- spect to remuneration paid after December 1971, see section 203(c) of Pub. L. 92–5, set out as a note under section 409 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 applicable with respect to tax returns the date prescribed by law for filing of which is after Dec. 31, 1969, see section 943(d) of Pub. L. 91–172, set out as a note under section 6651 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by section 108(b) of Pub. L. 90–248 appli- cable only with respect to remuneration paid after De- cember 1967, see section 108(c) of Pub. L. 90–248, set out as a note under section 409 of Title 42, The Public Health and Welfare. Amendment by section 123(b) of Pub. L. 90–248 appli- cable with respect to services performed after Dec. 31, 1967, see section 123(c) of Pub. L. 90–248, set out as a note under section 410 of Title 42. Pub. L. 90–248, title V, § 504(d), Jan. 2, 1968, 81 Stat. 935, provided that: ‘‘The amendments made by this sec- tion [amending this section, section 3306 of this title, and section 409 of Title 42] shall apply with respect to remuneration paid after the date of the enactment of this Act [Jan. 2, 1968].’’ EFFECTIVE DATE OF 1965 AMENDMENT Amendment by section 311(b)(4), (5) of Pub. L. 89–97 applicable only with respect to services performed after 1965, see section 311(c) of Pub. L. 89–97, set out as an Ef- fective Date of 1965 Amendment note under section 410 of Title 42, The Public Health and Welfare. Amendment by section 313 of Pub. L. 89–97 applicable only with respect to tips received by employees after 1965, see section 313(f) of Pub. L. 89–97, set out as an Ef- fective Date note under section 6053 of this title. Pub. L. 89–97, title III, § 316(a)(2), July 30, 1965, 79 Stat. 386, provided that: ‘‘The amendment made by para- graph (1) [amending this section] shall apply in the case of any certificate filed under section 3121(k)(1)(A) of such Code after the date of the enactment of this Act [July 30, 1965].’’ Amendment by section 317 of Pub. L. 89–97 applicable with respect to services performed after quarter ending September 30, 1965, and after quarter in which Sec- retary of the Treasury receives a certification from Commissioners of District of Columbia expressing their desire to have insurance system established by sections 401 et seq. and 1395c et seq. of Title 42 extended to the officers and employees coming under provisions of such amendments, see section 317(g) of Pub. L. 89–97, set out as a note under section 410 of Title 42. Pub. L. 89–97, title III, § 320(c), July 30, 1965, 79 Stat. 394, provided that: ‘‘The amendments made by sub- sections (a)(1) and (a)(3)(A) [amending sections 409 and 413 of Title 42], and the amendments made by sub- section (b) (except paragraph (1) thereof) [amending this section and sections 3122, 3125, and 6413 of this title], shall apply only with respect to remuneration paid after December 1965. The amendments made by subsections (a)(2), (a)(3)(B), and (b)(1) [amending sec- tion 1402 of this title and sections 411 and 413 of Title 42] shall apply only with respect to taxable years end- ing after 1965. The amendment made by subsection (a)(4) [amending section 415 of Title 42] shall apply only with respect to calendar years after 1965.’’ EFFECTIVE DATE OF 1964 AMENDMENTS Pub. L. 88–650, § 4(d), Oct. 13, 1964, 78 Stat. 1078, pro- vided that: ‘‘The amendments made by this section [amending this section, section 3306 of this title, and section 409 of Title 42, The Public Health and Welfare] shall apply with respect to remuneration paid on or after the first day of the first calendar month which be- gins more than ten days after the date of the enact- ment of this Act [Oct. 13, 1964].’’ Amendment by Pub. L. 88–272 applicable to remunera- tion paid after Dec. 31, 1962, see section 220(d) of Pub. L. 88–272, set out as an Effective Date note under sec- tion 406 of this title. EFFECTIVE DATE OF 1961 AMENDMENTS Pub. L. 87–293, title II, § 202(c), Sept. 22, 1961, 75 Stat. 627, provided that: ‘‘The amendments made by sub- sections (a) and (b) of this section [amending this sec- Page 2721 TITLE 26—INTERNAL REVENUE CODE § 3121 tion, sections 3122 and 6051 of this title, and sections 405, 409, and 410 of Title 42, The Public Health and Wel- fare] shall apply with respect to service performed after the date of the enactment of this Act [Sept. 22, 1961]. In the case of any individual who is enrolled as a volun- teer or volunteer leader under section 16(a) of this Act [section 2515(a) of Title 22, Foreign Relations and Inter- course] such amendments shall apply with respect to services performed on or after the effective date of such enrollment.’’ [Section 202(c) of Pub. L. 87–293 repealed by Pub. L. 89–572, § 5(a), Sept. 13, 1966, 80 Stat. 765. Such repeal not deemed to affect amendments contained in such provisions, see section 5(b) of Pub. L. 89–572, set out as a note under former section 2515 of Title 22.] Pub. L. 87–256, title I, § 110(h)(3), Sept. 21, 1961, 75 Stat. 537, provided that: ‘‘The amendments made by sub- sections (e) and (f) of this section [amending this sec- tion, section 3306 of this title, and section 410 of Title 42, The Public Health and Welfare] shall apply with re- spect to service performed after December 31, 1961.’’ EFFECTIVE DATE OF 1960 AMENDMENTS Amendment by section 103(n) of Pub. L. 86–778 appli- cable only with respect to (1) service in the employ of the Government of Guam or any political subdivision thereof, or any instrumentality of any one or more of the foregoing wholly owned thereby, which is per- formed after 1960 and after the calendar quarter in which the Secretary of the Treasury receives a certifi- cation by the Governor of Guam that legislation has been enacted by the Government of Guam expressing its desire to have the insurance system established by title II of the Social Security Act (42 U.S.C. 401 et seq.) extended to the officers and employees of such Govern- ment and such political subdivisions and instrumental- ities, and (2) service in the employ of the Government of American Samoa or any political subdivision thereof or any instrumentality of any one or more of the fore- going wholly owned thereby, which is performed after 1960 and after the calendar quarter in which the Sec- retary of the Treasury receives a certification by the Governor of American Samoa that the Government of American Samoa desires to have the insurance system established by title II of the Social Security Act ex- tended to the officers and employees of such Govern- ment and such political subdivisions and instrumental- ities, see section 103(v)(1) of Pub. L. 86–778, set out as a note under section 402 of Title 42, The Public Health and Welfare, and such amendment applicable only as expressly provided therein, see section 103(v)(2) of Pub. L. 86–778, set out as a note under section 402 of Title 42. Amendment by section 103(o), (p) of Pub. L. 86–778 ap- plicable only with respect to service performed after 1960, see section 103(v)(1) of Pub. L. 86–778, set out as a note under section 402 of Title 42. Amendment by section 104(b) of Pub. L. 86–778 appli- cable only with respect to services performed after 1960, see section 104(c) of Pub. L. 86–778, set out as a note under section 410 of Title 42. Pub. L. 86–624, § 18(k), July 12, 1960, 74 Stat. 416, pro- vided that: ‘‘The amendments contained in subsections (a) through (j) of this section [amending this section and sections 2202, 3306, 4221, 4233, 4262, 4502, 4774, 7653, and 7701 of this title] shall be effective as of August 21, 1959.’’ Pub. L. 86–778, title I, § 105(d), Sept. 13, 1960, 74 Stat. 945, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) The amendments made by subsection (a) [amend- ing this section] shall apply only with respect to cer- tificates filed under section 3121(k)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] after the date of the enactment of this Act [Sept. 13, 1960]. ‘‘(2) No monthly benefits under title II of the Social Security Act [42 U.S.C. 401 et seq.] for the month in which this Act is enacted or any prior month shall be payable or increased by reason of the provisions of sub- sections (b) and (c) of this section or the amendments made by such subsections [amending section 1402 of this title and enacting provisions set out as notes under this section and 1402 of this title], and no lump- sum death payment under such title shall be payable or increased by reason of such provisions or amendments in the case of any individual who died prior to the date of the enactment of this Act [Sept. 13, 1960].’’ EFFECTIVE DATE OF 1959 AMENDMENTS Amendment by Pub. L. 86–168 effective Jan. 1, 1960, see Pub. L. 86–168, title II, § 203(c), Aug. 18, 1959, 73 Stat. 390. Pub. L. 86–70, § 22(i), June 25, 1959, 73 Stat. 147, pro- vided that: ‘‘The amendments contained in subsections (a) through (h) of this section [amending this section and sections 2202, 3306, 4221, 4233, 4262, 4502, 4774, 7621, 7653, and 7701 of this title] shall be effective as of Janu- ary 3, 1959.’’ EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85–840, title IV, § 402(e), Aug. 28, 1958, 72 Stat. 1043, provided that: ‘‘The amendments made by sub- sections (b) and (c) [amending this section and section 3122 of this title] shall be applicable only with respect to remuneration paid after 1958.’’ Pub. L. 85–840, title IV, § 404(b), Aug. 28, 1958, 72 Stat. 1044, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply with re- spect to service performed after 1958.’’ Pub. L. 85–840, title IV, § 405(c), Aug. 28, 1958, 72 Stat. 1047, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section] shall apply with respect to certificates filed under section 3121(k)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] after the date of enactment of this Act [Aug. 28, 1958] and requests filed under subparagraph (F) of such section after such date.’’ EFFECTIVE DATE OF 1956 AMENDMENT Act Aug. 1, 1956, ch. 836, title II, § 201(m), 70 Stat. 843, as amended by act Oct. 22, 1986, Pub. L. 99–514, § 2, 100 Stat. 2095, provided that: ‘‘(1) The amendments made by subsection (a) [enact- ing section 3113 of this title] and paragraph (1) of sub- section (h) [amending this section] shall apply with re- spect to remuneration paid after 1956. The amendment made by subsection (b) [amending this section] shall apply with respect to remuneration paid after October 1956. The amendments made by subsection (c) and para- graph (2) of subsection (h) [amending this section] shall apply with respect to service performed after 1956. The amendments made by paragraphs (1) and (2) of sub- section (d) [amending this section] shall apply with re- spect to service with respect to which the amendments made by paragraphs (1) and (2) of subsection (b) of sec- tion 104 of this Act [amending section 410 of Title 42, The Public Health and Welfare] apply. The amend- ments made by paragraph (1) of subsection (e) [amend- ing this section] shall apply with respect to service per- formed after 1954. The amendment made by paragraph (3) of such subsection shall [amending section 1402 of this title] apply with respect to taxable years ending after 1954. The amendments made by paragraph (2) of subsection (e) and by subsection (f) [amending section 1402 of this title] shall apply with respect to taxable years ending after 1955. The amendment made by sub- section (i) [amending section 1402 of this title] shall apply with respect to taxable years ending on or after December 31, 1956. The amendment made by subsection (l) [amending this section] shall apply with respect to certificates filed after 1956 under section 3121(k) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]. ‘‘(2)(A) Except as provided in subparagraph (B), the amendment made by subsection (g) [amending section 1402 of this title] shall apply only with respect to tax- able years ending after 1956. ‘‘(B) Any individual who, for a taxable year ending after 1954 and prior to 1957, had income which by reason of the amendment made by subsection (g) would have been included within the meaning of ‘net earnings from Page 2722 TITLE 26—INTERNAL REVENUE CODE § 3121 self-employment’ (as such term is defined in section 1402(a) of the Internal Revenue Code of 1986), if such in- come had been derived in a taxable year ending after 1956 by an individual who had filed a waiver certificate under section 1402(e) of such Code, may elect to have the amendment made by subsection (g) apply to his taxable years ending after 1954 and prior to 1957. No election made by any individual under this subpara- graph shall be valid unless such individual has filed a waiver certificate under section 1402(e) of such Code prior to the making of such election or files a waiver certificate at the time he makes such election. ‘‘(C) Any individual described in subparagraph (B) who has filed a waiver certificate under section 1402(e) of such Code prior to the date of enactment of this Act [Aug. 1, 1956], or who files a waiver certificate under such section on or before the due date of his return (in- cluding any extension thereof) for his last taxable year ending prior to 1957, must make such election on or be- fore the due date of his return (including any extension thereof) for his last taxable year ending prior to 1957, or before April 16, 1957, whichever is the later. ‘‘(D) Any individual described in subparagraph (B) who has not filed a waiver certificate under section 1402(e) of such Code on or before the due date of his re- turn (including any extension thereof) for his last tax- able year ending prior to 1957 must make such election on or before the due date of his return (including any extension thereof) for his first taxable year ending after 1956. Any individual described in this subpara- graph whose period for filing a waiver certificate under section 1402(e) of such Code has expired at the time he makes such election may, notwithstanding the provi- sions of paragraph (2) of such section, file a waiver cer- tificate at the time he makes such election. ‘‘(E) An election under subparagraph (B) shall be made in such manner as the Secretary of the Treasury or his delegate shall prescribe by regulations. Notwith- standing the provisions of paragraph (3) of section 1402(e) of such Code, the waiver certificate filed by an individual who makes an election under subparagraph (B) (regardless of when filed) shall be effective for such individual’s first taxable year ending after 1954 in which he had income which by reason of the amend- ment made by subsection (g) would have been included within the meaning of ‘net earnings from self-employ- ment’ (as such term is defined in section 1402(a) of such Code), if such income had been derived in a taxable year ending after 1956 by an individual who had filed a waiver certificate under section 1402(e) of such Code, or for the taxable year prescribed by such paragraph (3) of section 1402(e), if such taxable year is earlier, and for all succeeding taxable years. ‘‘(F) No interest or penalty shall be assessed or col- lected for failure to file a return within the time pre- scribed by law, if such failure arises solely by reason of an election made by an individual under subparagraph (B), or for any underpayment of the tax imposed by sec- tion 1401 of such Code arising solely by reason of such election, for the period ending with the date such indi- vidual makes an election under subparagraph (B). ‘‘(3) Any tax under chapter 2 of the Internal Revenue Code of 1986 [section 1401 et seq. of this title] which is due, solely by reason of the enactment of subsection (f) [amending section 1402 of this title], or paragraph (2) of subsection (e), of this section [amending section 1402 of this title], for any taxable year ending on or before the date of the enactment of this Act [Aug. 1, 1956] shall be considered timely paid if payment is made in full on or before the last day of the sixth calendar month fol- lowing the month in which this Act is enacted. In no event shall interest be imposed on the amount of any tax due under such chapter solely by reason of the en- actment of subsection (f), or paragraph (2) of subsection (e), of this section for any period before the day after the date of enactment of this Act. ‘‘(4) Any tax due under chapter 21 of the Internal Rev- enue Code of 1986 [this chapter] which is due, solely by reason of the enactment of subsection (d) [amending this section] and an effective date prescribed pursuant to paragraph (2)(B) or (2)(C) of section 104(i) [set out as a note under section 410 of Title 42, The Public Health and Welfare], for any calendar quarter beginning prior to the day on which the Secretary of Health, Edu- cation, and Welfare approves the plan which prescribes such effective date shall be considered timely paid if payment is made in full on or before the last day of the sixth calendar month following the month in which such plan is approved. In no event shall interest be im- posed on the amount of any such tax due under such chapter for any period before the day on which the Sec- retary of Health, Education, and Welfare approves such plan.’’ Amendment by act Aug. 1, 1956, ch. 837, effective Jan. 1, 1957, see act Aug. 1, 1956, ch. 837, title VI, § 603(a), 70 Stat. 887. EFFECTIVE DATE OF 1954 AMENDMENT Act Sept. 1, 1954, ch. 1206, title II, § 204(c), 68 Stat. 1091, provided that: ‘‘The amendments made by sub- sections (a) and (b) [amending this section] shall be ap- plicable only with respect to remuneration paid after 1954.’’ Act Sept. 1, 1954, ch. 1206, title II, § 205(f), 68 Stat. 1092, provided that: ‘‘The amendments made by subsections (c), (d), and (e) [amending this section] shall be applica- ble only with respect to services performed after 1954. The amendments made by subsections (a) and (b) [amending this section] shall be applicable only with respect to services (whether performed after 1954 or prior to 1955) for which the remuneration is paid after 1954.’’ Act Sept. 1, 1954, ch. 1206, title II, § 206(b), 68 Stat. 1093, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall be applicable only with respect to services performed after 1954.’’ REGULATIONS Pub. L. 97–123, § 3(d), Dec. 29, 1981, 95 Stat. 1662, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) The regulations prescribed under the last sen- tence of section 3121(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and the regulations pre- scribed under subparagraph (D) of section 3231(e)(4) of such Code, shall provide procedures under which, if (with respect to any employee) the third party prompt- ly— ‘‘(A) withholds the employee portion of the taxes involved, ‘‘(B) deposits such portion under section 6302 of such Code, and ‘‘(C) notifies the employer of the amount of the wages or compensation involved, the employer (and not the third party) shall be liable for the employer portion of the taxes involved and for meeting the requirements of section 6051 of such Code (relating to receipts for employees) with respects to the wages or compensation involved. ‘‘(2) For purposes of paragraph (1)— ‘‘(A) the term ‘employer’ means the employer for whom services are normally rendered, ‘‘(B) the term ‘taxes involved’ means, in the case of any employee, the taxes under chapters 21 and 22 which are payable solely by reason of the parenthet- ical matter contained in subparagraph (B) of section 3121(a)(2) of such Code, or solely by reason of para- graph (4) of section 3231(e) of such Code, and ‘‘(C) the term ‘wages or compensation involved’ means, in the case of any employee, wages or com- pensation with respect to which taxes described in subparagraph (B) are imposed.’’ REPEALS; AMENDMENTS AND APPLICATION OF AMENDMENTS UNAFFECTED Section 202(a)(1), (2) of Pub. L. 87–293, cited as a credit to this section, was repealed by Pub. L. 89–572, § 5(a), Sept. 13, 1966, 80 Stat. 765. Such repeal not deemed to affect amendments to this section contained in such Page 2723 TITLE 26—INTERNAL REVENUE CODE § 3121 provisions, and continuation in full force and effect until modified by appropriate authority of all deter- minations, authorization, regulations, orders, con- tracts, agreements, and other actions issued, under- taken, or entered into under authority of the repealed provisions, see section 5(b) of Pub. L. 89–572, set out as a note under section 2515 of Title 22, Foreign Relations and Intercourse. CONSTRUCTION OF 2018 AMENDMENT Pub. L. 115–243, § 2(c), Sept. 20, 2018, 132 Stat. 2895, pro- vided that: ‘‘Nothing in this Act [see Short Title of 2018 Amendment note set out under section 1305 of Title 42, The Public Health and Welfare] or the amendments made by this Act shall be construed to affect applica- tion of any Federal income tax withholding require- ments under the Internal Revenue Code of 1986.’’ TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. Secretary of Health, Education, and Welfare redesig- nated Secretary of Health and Human Services by sec- tion 3508 of Title 20, Education. SUBVERSIVE ACTIVITIES CONTROL BOARD The Subversive Activities Control Board was estab- lished by act Sept. 23, 1950, ch. 1024, § 12, 64 Stat. 977 and ceased to operate June 30, 1973. NO INFERENCE TO BE DRAWN FROM AMENDMENT BY PUB. L. 108–121 No inference to be drawn from amendment to subsec. (a)(18) of this section by section 106 of Pub. L. 108–121 with respect to tax treatment of any amounts under program described in section 134(b)(4) of this title for any taxable year beginning before Jan. 1, 2003, see sec- tion 106(d) of Pub. L. 108–121, set out as a note under section 134 of this title. CLARIFICATION OF STANDARD TO BE USED IN DETER- MINING EMPLOYMENT TAX STATUS OF SECURITIES BROKERS Pub. L. 105–34, title IX, § 921, Aug. 5, 1997, 111 Stat. 879, provided that: ‘‘(a) IN GENERAL.—In determining for purposes of the Internal Revenue Code of 1986 whether a registered rep- resentative of a securities broker-dealer is an employee (as defined in section 3121(d) of the Internal Revenue Code of 1986), no weight shall be given to instructions from the service recipient which are imposed only in compliance with investor protection standards imposed by the Federal Government, any State government, or a governing body pursuant to a delegation by a Federal or State agency. ‘‘(b) EFFECTIVE DATE.—Subsection (a) shall apply to services performed after December 31, 1997.’’ TREATMENT OF CERTAIN UNIVERSITY ACCOUNTS Pub. L. 104–188, title I, § 1802, Aug. 20, 1996, 110 Stat. 1892, provided that: ‘‘(a) IN GENERAL.—For purposes of subsection (s) of section 3121 of the Internal Revenue Code of 1986 (relat- ing to concurrent employment by 2 or more employ- ers)— ‘‘(1) the following entities shall be deemed to be re- lated corporations that concurrently employ the same individual: ‘‘(A) a State university which employs health professionals as faculty members at a medical school, and ‘‘(B) an agency account of a State university which is described in subparagraph (A) and from which there is distributed to such faculty members payments forming a part of the compensation that the State, or such State university, as the case may be, agrees to pay to such faculty members, but only if— ‘‘(i) such agency account is authorized by State law and receives the funds for such payments from a faculty practice plan described in section 501(c)(3) of such Code and exempt from tax under section 501(a) of such Code, ‘‘(ii) such payments are distributed by such agency account to such faculty members who render patient care at such medical school, and ‘‘(iii) such faculty members comprise at least 30 percent of the membership of such faculty prac- tice plan, and ‘‘(2) remuneration which is disbursed by such agen- cy account to any such faculty member of the med- ical school described in paragraph (1)(A) shall be deemed to have been actually disbursed by the State, or such State university, as the case may be, as a common paymaster and not to have been actually disbursed by such agency account. ‘‘(b) EFFECTIVE DATE.—The provisions of subsection (a) shall apply to remuneration paid after December 31, 1996.’’ EXCLUSION FROM WAGES AND COMPENSATION OF RE- FUNDS REQUIRED FROM EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS For purposes of this chapter, the term ‘‘wages’’ shall not include the amount of any refund required under section 421 of Pub. L. 100–360, 42 U.S.C. 1395b note, see section 10202 of Pub. L. 101–239, set out as a note under section 1395b of Title 42, The Public Health and Wel- fare. NONENFORCEMENT OF AMENDMENT MADE BY SECTION 1151 OF PUB. L. 99–514 FOR FISCAL YEAR 1990 No monies appropriated by Pub. L. 101–136 to be used to implement or enforce section 1151 of Pub. L. 99–514 or the amendments made by such section, see section 528 of Pub. L. 101–136, set out as a note under section 89 of this title. TREATMENT OF CERTAIN FAMILY SERVICES CARE PROVIDERS Pub. L. 100–647, title VI, § 6305, Nov. 10, 1988, 102 Stat. 3756, provided that: ‘‘(a) IN GENERAL.—A State may treat a person who renders dependent care or similar services as other than an employee [for] employment tax purposes for the applicable period if all of the following conditions are satisfied with respect to such person for such appli- cable period: ‘‘(i) The person does not provide any dependent care or similar services in any facility owned or operated by the State. ‘‘(ii) The person is compensated by the State for such services, directly or indirectly, out of funds pro- vided pursuant to chapter 7 of title 42 of the United States Code [42 U.S.C. 301 et seq.], or the provisions and amendments made by the Family Security Act of 1988 [probably means the Family Support Act of 1988, Pub. L. 100–485, see Tables for classification]. ‘‘(iii) The State does not treat the person, with re- spect to the provision of dependent care or similar services, as an employee for employment tax pur- poses. ‘‘(iv) The State files all Federal income tax returns (including information returns) required to be filed with respect to such person on a basis consistent with the State’s treatment of such person as other than an employee beginning on the date of the enactment of this section [Nov. 10, 1988]. ‘‘(v) No more than ten percent of the State’s em- ployees are provided with insurance under title II of Page 2724 TITLE 26—INTERNAL REVENUE CODE § 3121 the Social Security Act [42 U.S.C. 401 et seq.] pursu- ant to voluntary agreements with the Secretary of Health and Human Services under section 218 of such title [42 U.S.C. 418]. ‘‘(b) STATE.—For purposes of this section, the term ‘State’ shall mean the government of the United States, District of Columbia, any State or political sub- division thereof, and any agency or instrumentality of any of the foregoing. ‘‘(c) EMPLOYMENT TAX.—For purposes of this section, the term ‘employment tax’ means any tax imposed by subtitle C of the Internal Revenue Code of 1986. ‘‘(d) APPLICABLE PERIOD.—For purposes of this sec- tion, the term ‘applicable period’ means the period be- ginning on January 1, 1984 and ending on December 31, 1990. ‘‘(e) REPORT.—The Secretary of the Treasury shall re- port to the Senate Committee on Finance and the House Committee on Ways and Means on the text [tax] status of day care providers compensated pursuant to the program described in the section no later than De- cember 31, 1989.’’ [The due date for the report referred to in section 6305(e) of Pub. L. 100–647, set out above, extended to Jan. 1, 1992, by Pub. L. 101–508, title XI, § 11831(b), Nov. 5, 1990, 104 Stat. 1388–559.] CERTAIN EMPLOYER PENSION CONTRIBUTIONS NOT INCLUDED IN FICA WAGE BASE Pub. L. 100–647, title VIII, § 8018, Nov. 10, 1988, 102 Stat. 3794, provided that: ‘‘In the case of any State (within the meaning of section 3121(e)(1) of the Internal Revenue Code of 1986) or political subdivision thereof which received a letter ruling of the Internal Revenue Service issued after December 31, 1983, and before the date of the enactment of this Act [Nov. 10, 1988] main- taining that any amount treated as an employer con- tribution under section 414(h)(2) of the Internal Rev- enue Code of 1986 is excluded from the definition of ‘wages’ for purposes of tax liability under section 3121(v)(1)(B) of such Code, such State or political sub- division shall be relieved of any liability for taxes under such section 3121(v)(1)(B) which, in good faith re- liance on such letter ruling, were not paid and which would otherwise have been required to be paid (but for this section) on or before the earlier of the date of the enactment of this Act or the date of the receipt of a no- tice of revocation from the Internal Revenue Service of such letter ruling.’’ PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998 For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year begin- ning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104–188, set out as a note under section 401 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994 For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of Pub. L. 102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of Pub. L. 102–318, set out as a note under section 401 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. FEDERAL LEGISLATIVE BRANCH EMPLOYEES; EXCLUSION OF CERTAIN RETIREMENT CONTRIBUTIONS FOR PUR- POSES OF SUBSECTION (b)(5)(G) Federal employees not to be deemed subject to Fed- eral retirement system for purposes of subsec. (b)(5)(G) of this section if employees are contributing reduced amounts by reason of Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983, see section 2601(c) of Pub. L. 98–369, set out as a note under section 410 of Title 42, The Public Health and Welfare. SERVICE PERFORMED FOR NONPROFIT ORGANIZATIONS BY FEDERAL EMPLOYEES For purposes of subsec. (b)(5) of this section as in ef- fect in January 1983 and as in effect on and after Janu- ary 1, 1984, service performed in the employ of a non- profit organization described in section 501(c)(3) of this title by an employee who is required by law to be sub- ject to subchapter III of chapter 83 of Title 5, Govern- ment Organization and Employees, with respect to such service, is considered to be service performed in the employ of an instrumentality of the United States, see section 2601(e) of Pub. L. 98–369, set out as a note under section 410 of Title 42, The Public Health and Welfare. REFUNDS TO CHURCHES OR QUALIFIED CHURCH- CONTROLLED ORGANIZATIONS Pub. L. 98–369, div. B, title VI, § 2603(f), July 18, 1984, 98 Stat. 1130, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘In any case where a church or qualified church-controlled organization makes an election under section 3121(w) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the Sec- retary of the Treasury shall refund (without interest) to such church or organization any taxes paid under sections 3101 and 3111 of such Code with respect to serv- ice performed after December 31, 1983, which is covered under such election. The refund shall be conditional upon the church or organization agreeing to pay to each employee (or former employee) the portion of the refund attributable to the tax imposed on such em- ployee (or former employee) under section 3101, and such employee (or former employee) may not receive any other refund payment of such taxes.’’ SOCIAL SECURITY COVERAGE OF RETIRED FEDERAL JUDGES ON ACTIVE DUTY Pub. L. 98–118, § 4, Oct. 11, 1983, 97 Stat. 803, as amend- ed by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, pro- vided that: ‘‘Notwithstanding section 101(d) of the So- cial Security Amendments of 1983 [section 101(d) of Pub. L. 98–21, set out as an Effective Date of 1983 Amendment note above], the amendments made by sec- tion 101(c) of such Act [amending this section and sec- tion 409 of Title 42, The Public Health and Welfare] shall apply only with respect to remuneration paid after December 31, 1985. Remuneration paid prior to January 1, 1986, under section 371(b) of title 28, United States Code, to an individual performing service under section 294 of such title, shall not be included in the term ‘‘wages’’ for purposes of section 209 of the Social Security Act [42 U.S.C. 409] or section 3121(a) of the In- ternal Revenue Code of 1986 [formerly I.R.C. 1954].’’ TREATMENT OF CERTAIN MEDICAL FACULTY PRACTICE PLANS Pub. L. 98–21, title I, § 125, Apr. 20, 1983, 97 Stat. 91, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(a) GENERAL RULE.—For purposes of subsection (s) of section 3121 of the Internal Revenue Code of 1986 [for- merly I.R.C. 1954] (relating to concurrent employment by 2 or more employers)— ‘‘(1) the following entities shall be deemed to be re- lated corporations: ‘‘(A) a State university which employs health professionals as faculty members at a medical school, and Page 2725 TITLE 26—INTERNAL REVENUE CODE § 3121 ‘‘(B) a faculty practice plan described in section 501(c)(3) of such Code and exempt from tax under section 501(a) of such Code— ‘‘(i) which employs faculty members of such medical school, and ‘‘(ii) 30 percent or more of the employees of which are concurrently employed by such medical school; and ‘‘(2) remuneration which is disbursed by such fac- ulty practice plan to a health professional employed by both such entities shall be deemed to have been actually disbursed by such university as a common paymaster and not to have been actually disbursed by such faculty practice plan. ‘‘(b) EFFECTIVE DATE.—The provisions of subsection (a) shall apply to remuneration paid after December 31, 1983.’’ WAIVER OF EXEMPTION BY NONPROFIT ORGANIZATION; TERMINATION OF CERTIFICATE PERIOD ON OR AFTER MARCH 31, 1983, PROHIBITED Pub. L. 98–21, title I, § 102(d), Apr. 20, 1983, 97 Stat. 71, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The period for which a certificate is in effect under section 3121(k) of the Internal Rev- enue Code of 1986 [formerly I.R.C. 1954] may not be ter- minated under paragraph (1)(D) or (2) thereof on or after March 31, 1983; but no such certificate shall be ef- fective with respect to any service to which the amend- ments made by this section [amending this section and section 410 of Title 42, The Public Health and Welfare] apply.’’ PAYMENTS UNDER STATE TEMPORARY DISABILITY LAW TO BE TREATED AS REMUNERATION FOR SERVICE Pub. L. 97–123, § 3(e), Dec. 29, 1981, 95 Stat. 1663, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘For purposes of applying section 209 of the Social Security Act [section 409 of Title 42, The Public Health and Welfare], section 3121(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and section 3231(e) of such Code with respect to the par- enthetical matter contained in section 209(b)(2) of the Social Security Act or section 3121(a)(2)(B) of the Inter- nal Revenue Code of 1986, or with respect to section 3231(e)(4) of such Code (as the case may be), payments under a State temporary disability law shall be treated as remuneration for service.’’ WAIVER OF EXEMPTION FROM SOCIAL SECURITY TAXES BY CERTAIN ORGANIZATIONS Pub. L. 96–605, title IV, § 401, Dec. 28, 1980, 94 Stat. 3531, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(a) WAIVER CERTIFICATE.— ‘‘(1) IN GENERAL.—Notwithstanding any other provi- sion of law, any waiver certificate filed by a qualified corporation (hereinafter in this section referred to as the ‘corporation’) under section 3121(k)(1) of the In- ternal Revenue Code of 1986 [formerly I.R.C. 1954] (re- lating to waiver of exemption from social security taxes by certain organizations) shall be deemed not to be effective, for purposes of the taxes imposed by section 3101 of such Code, with respect to any wages— ‘‘(A) paid by the Corporation to any employee thereof after December 31, 1972, and before April 1, 1975, if the Corporation furnishes to the Secretary of the Treasury or his delegate evidence reasonably satisfactory to him that the Corporation as re- funded, prior to February 1, 1977, to such employee (or to his survivors or estate) the full amount of the taxes imposed by section 3101 of such Code on such wages, or ‘‘(B) paid after March 31, 1975, and prior to July 1, 1977, by the Corporation to an individual as an em- ployee of the Corporation, if the Corporation fur- nishes to the Secretary of the Treasury or his dele- gate evidence reasonably satisfactory to him that (i) such individual was not an employee of the Cor- poration on June 30, 1978, and (ii) no amount of the taxes imposed by section 3101 of such Code on such wages were withheld by the Corporation from such wages. ‘‘(2) APPLICATION OF PARAGRAPH (1).— ‘‘(A) EVIDENCE TO BE SUBMITTED TO SECRETARY.— The provisions of paragraph (1) shall not apply to wages described in subparagraph (A) or (B) of such paragraph unless, prior to the close of the one-year period which begins on the date of the enactment of this Act [Dec. 28, 1980], the Corporation furnishes to the Secretary of the Treasury or his delegate the evidence referred to in either such subparagraph. ‘‘(B) TAX NOT IMPOSED.—If the provisions of para- graph (1) apply with respect to any wages paid by the Corporation to an employee thereof, no taxes imposed on such wages by section 3101 of the Inter- nal Revenue Code of 1986 shall be payable, and no interest or penalty with respect to the imposition of taxes by such section on such wages (or with re- spect to the imposition of taxes by such section or section 3111 of such Code on any wages paid by the Corporation prior to January 1, 1978) shall be im- posed or collected. ‘‘(C) CREDIT AGAINST TAX.—Under regulations pre- scribed by the Secretary, there shall be allowed as a one-time credit against the tax imposed on the Corporation under section 3101 or 3111 of the Inter- nal Revenue Code of 1986 (and any interest or pen- alties imposed thereon) an amount equal to the sum of— ‘‘(i) all amounts of tax imposed by section 3101 of such Code which have been paid by the Cor- poration with respect to wages to which para- graph (1) applies, and ‘‘(ii) all amounts paid by such Corporation as a penalty or as interest with respect to the tax im- posed by section 3101 or 3111 of such Code on such wages. ‘‘(b) TREATMENT FOR PURPOSES OF SOCIAL SECURITY ACT.—In the administration of titles II and XVIII of the Social Security Act [42 U.S.C. 401 et seq. and 1395 et seq.], any wages paid to any individual to which the provisions of subsection (a) apply shall be treated as wages (within the meaning of section 209 of such Act) [42 U.S.C. 409] for purposes of determining— ‘‘(1) entitlement to, or amount of, any insurance benefit payable to such individual or any other per- son on the basis of the wages and self-employment in- come of such individual, or ‘‘(2) entitlement of such individual to benefits under title XVIII of such Act [42 U.S.C. 1395 et seq.] or entitlement of any other person to such benefits on the basis of the wages and self-employment in- come of such individual. ‘‘(c) QUALIFIED CORPORATION DEFINED.—For purposes of this section, the term ‘qualified corporation’ means any corporation which— ‘‘(1) filed a waiver certificate under section 3121 of the Internal Revenue Code of 1986 during 1968; ‘‘(2) filed a second waiver certificate under such section during 1975 believing that no other waiver certificate had been filed; ‘‘(3) received a refund of the taxes imposed by sec- tions 3101 and 3111 of such Code with respect to cer- tain wages paid to more than 120 but less than 180 em- ployees who did not concur in the filing of the second waiver certificate; and ‘‘(4) was notified during 1977 by the Internal Rev- enue Service that the certificate had been filed dur- ing 1968. ‘‘(d) LIABILITY FOR TAXES.—Except as provided in sub- section (a)(2)(C)(ii), nothing in this section shall be construed to relieve the Corporation of any liability for the payment of the taxes imposed by section 3111 of the Page 2726 TITLE 26—INTERNAL REVENUE CODE § 3121 Internal Revenue Code of 1986 with respect to any wages paid by it to any individual for any period.’’ REFUND OR CREDIT OF TAXES TO NONPROFIT ORGANIZA- TIONS AFTER SEPT. 9, 1976, ON TAXES PAID UNDER SECTIONS 3101 or 3111; PROHIBITION; CONSTRUCTIVE FILING OF CERTIFICATE Pub. L. 94–563, § 2, Oct. 19, 1976, 90 Stat. 2658, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘Notwithstanding any other provi- sion of law, no refund or credit of any tax paid under section 3101 or 3111 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] by an organization described in section 501(c)(3) of such Code which is exempt from in- come tax under section 501(a) of such Code shall be made on or after September 9, 1976, by reason of such organization’s failure to file a waiver certificate under section 3121(k)(1) of such Code (or the corresponding provision of prior law), if such organization is deemed to have filed such a certificate under section 3121(k)(4) of such Code (as added by the first section of this Act).’’ REMUNERATION FOR SERVICES DEEMED TO CONSTITUTE EMPLOYMENT; SERVICES FOR ORGANIZATIONS DEEMED TO HAVE FILED CERTIFICATES UNDER SUBSECTION (k)(4) OF THIS SECTION Pub. L. 95–216, title III, § 312(c), Dec. 20, 1977, 91 Stat. 1533, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘In any case where— ‘‘(1) an individual performed service, as an em- ployee of an organization which is deemed under sec- tion 3121(k)(4) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] to have filed a waiver certifi- cate under section 3121(k)(1) of such Code, on or after the first day of the applicable period described in sub- paragraph (A)(ii) of such section 3121(k)(4) and before July 1, 1977; and ‘‘(2) the service so performed does not constitute employment (as defined in section 210(a) of the Social Security Act [42 U.S.C. 410(a)] and section 3121(b) of such Code) because the waiver certificate which the organization is deemed to have filed is made inappli- cable to such service by section 3121(k)(4)(C) of such Code, but would constitute employment (as so de- fined) in the absence of such section 3121(k)(4)(C), the remuneration paid for such service shall, upon the request of such individual (filed on or before April 15, 1980, in such manner and form, and with such official, as may be prescribed by regulations made under title II of the Social Security Act [42 U.S.C. 401 et seq.]) ac- companied by full payment of all of the taxes which would have been paid under section 3101 of such Code with respect to such remuneration but for such section 3121(k)(4)(C) (or by satisfactory evidence that appro- priate arrangements have been made for the payment of such taxes in installments as provided in section 3121(k)(8) of such Code), be deemed to constitute remu- neration for employment as so defined. In any case where remuneration paid by an organization to an indi- vidual is deemed under the preceding sentence to con- stitute remuneration for employment, such organiza- tion shall be liable (notwithstanding any other provi- sion of such Code) for payment of the taxes which it would have been required to pay under section 3111 of such Code with respect to such remuneration in the ab- sence of such section 3121(k)(4)(C).’’ REMUNERATION FOR SERVICES DEEMED TO CONSTITUTE EMPLOYMENT; SERVICES FOR ORGANIZATIONS DEEMED TO HAVE FILED CERTIFICATES UNDER SUBSECTION (k)(5) OF THIS SECTION Pub. L. 94–563, § 3, Oct. 19, 1976, 90 Stat. 2658, as amended by Pub. L. 95–216, title III, § 312(e), Dec. 20, 1977, 91 Stat. 1535; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘In any case where— ‘‘(1) an individual performed service, as an em- ployee of an organization which is deemed under sec- tion 3121(k)(5) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] to have filed a waiver certifi- cate under section 3121(k)(1) of such Code, at any time prior to the period for which such certificate is effective; ‘‘(2) the taxes imposed by sections 3101 and 3111 of such Code were paid with respect to remuneration paid for such service, but such service (or any part thereof) does not constitute employment (as defined in section 210(a) of the Social Security Act [42 U.S.C. 410(a)] and section 3121(b) of such Code because the applicable taxes so paid were refunded or credited (otherwise than through a refund or credit which would have been allowed if a valid waiver certificate filed under section 3121(k)(1) of such Code had been in effect) prior to September 9, 1976; and ‘‘(3) any portion of such service (with respect to which taxes were paid and refunded or credited as de- scribed in paragraph (2)) would constitute employ- ment (as so defined) if the organization had actually filed under section 3121(k)(1) of such Code a valid waiver certificate effective as provided in section 3121(k)(5)(B) thereof (with such individual’s signature appearing on the accompanying list), the remuneration paid for the portion of such service described in paragraph (3) shall, upon the request of such individual (filed on or before April 15, 1980, in such manner and form, and with such official, as may be pre- scribed by regulations made under title II of the Social Security Act [42 U.S.C. 401 et seq.]) accompanied by full repayment of the taxes which were paid under section 3101 of such Code with respect to such remuneration and so refunded or credited (or by satisfactory evidence that appropriate arrangements have been made for the repayment of such taxes in installments as provided in section 3121(k)(8) of such Code), be deemed to con- stitute remuneration for employment as so defined. In any case where remuneration paid by an organization to an individual is deemed under the preceding sen- tence to constitute remuneration for employment, such organization shall be liable (notwithstanding any other provision of such Code) for repayment of any taxes which it paid under section 3111 of such Code with re- spect to such remuneration and which were refunded or credited to it.’’ SERVICE FOR CERTAIN TAX-EXEMPT ORGANIZATIONS PRIOR TO FILING OF WAIVER CERTIFICATE Pub. L. 86–778, title I, § 105(b)(1)–(5), Sept. 13, 1960, 74 Stat. 943, 944, as amended by Pub. L. 89–97, title III, § 316(c)(1), July 30, 1965, 79 Stat. 386; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) If— ‘‘(A) an individual performed service in the employ of an organization with respect to which remunera- tion was paid before the first day of the calendar quarter in which the organization filed a waiver cer- tificate pursuant to section 3121(k)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and such service is excepted from employment under section 210(a)(8)(B) of the Social Security Act [42 U.S.C. 410(a)(8)(B)], ‘‘(B) such service would have constituted employ- ment as defined in section 210 of such Act [42 U.S.C. 410] if the requirements of section 3121(k)(1) of such Code were satisfied, ‘‘(C) such organization paid, on or before the due date of the tax return for the calendar quarter before the calendar quarter in which the organization filed a certificate pursuant to section 3121(k)(1) of such Code, any amount, as taxes imposed by sections 3101 and 3111 of such Code with respect to such remunera- tion paid by the organization to the individual for such service, ‘‘(D) such individual, or a fiduciary acting for such individual or his estate, or his survivor (within the meaning of section 205(c)(1)(C) of such Act [42 U.S.C. 405(c)(1)(C)]), requests that such remuneration be deemed to constitute remuneration for employment for purposes of title II of such Act [42 U.S.C. 401 et seq.], and ‘‘(E) the request is made in such form and manner, and with such official, as may be prescribed by regu- Page 2727 TITLE 26—INTERNAL REVENUE CODE § 3122 lations made by the Secretary of Health, Education, and Welfare, then, subject to the conditions stated in paragraphs (2), (3), (4), and (5), the remuneration with respect to which the amount has been paid as taxes shall be deemed to constitute remuneration for employment for purposes of title II of such Act [42 U.S.C. 401 et seq.]. ‘‘(2) Paragraph (1) shall not apply with respect to an individual unless the organization referred to in para- graph (1)(A), on or before the date on which the request described in paragraph (1) is made, has filed a certifi- cate pursuant to section 3121(k)(1) of such Code. ‘‘(3) Paragraph (1) shall not apply with respect to an individual who is employed by the organization re- ferred to in paragraph (2) on the date the certificate is filed. ‘‘(4) If credit or refund of any portion of the amount referred to in paragraph (1)(C) (other than a credit or refund which would be allowed if the service con- stituted employment for purposes of chapter 21 of such Code) has been obtained, paragraph (1) shall not apply with respect to the individual unless the amount cred- ited or refunded (including any interest under section 6611 of such Code) is repaid before January 1, 1968, or, if later, the first day of the third year after the year in which the organization filed a certificate pursuant to section 3121(k)(1) of such Code. ‘‘(5) Paragraph (1) shall not apply to any service per- formed for the organization in a period for which a cer- tificate filed pursuant to section 3121(k)(1) of such Code is not in effect.’’ [Pub. L. 89–97, title III, § 316(c)(2), July 30, 1965, 79 Stat. 387, provided that: ‘‘The amendment made by paragraph (1) [amending section 105(b) of Pub. L. 86–778, set out above] shall take effect on the date of the en- actment of this Act [July 30, 1965]. The provisions of section 105(b) of the Social Security Amendments of 1960 [section 105(b) of Pub. L. 86–778] which were in ef- fect before the date of the enactment of this Act [July 30, 1965] shall be applicable with respect to any request filed under section 105(b)(1) of such Amendments before such date. Nothing in the preceding sentence shall pre- vent the filing of a request under section 105(b)(1) of such Amendments as amended by this Act.’’] SERVICE FOR CERTAIN TAX-EXEMPT ORGANIZATIONS FOR WHICH REMUNERATION WAS PAID BEFORE JULY 30, 1965, BUT AFTER FILING OF WAIVER CERTIFICATE Pub. L. 89–97, title III, § 316(d), July 30, 1965, 79 Stat. 387, provided that where an individual performed serv- ice for which remuneration was paid before July 30, 1965, by an organization which, before such date, filed a waiver certificate pursuant to subsec. (k)(1) of this section, then under certain conditions, the remunera- tion paid with respect to such service was to be deemed remuneration for employment for purposes of title II of the Social Security Act, sections 401 et seq, of Title 42, The Public Health and Welfare, even though normally excluded from employment under title II of the Social Security Act. SERVICE FOR CERTAIN TAX-EXEMPT ORGANIZATIONS PERFORMED AFTER 1950 AND PRIOR TO JULY 1, 1960 Pub. L. 86–778, title I, § 105(b)(1)–(5), Sept. 13, 1960, 74 Stat. 943, 944, provided that where an individual per- formed service in the employ of an organization after 1950 with respect to which remuneration was paid be- fore 1960 and such service is normally excepted from employment under title II of the Social Security Act (42 U.S.C. 401 et seq.), then under certain conditions, the remuneration paid with respect to such service was to be deemed remuneration for employment for pur- poses of title II of the Social Security Act. SERVICE FOR CERTAIN TAX-EXEMPT ORGANIZATIONS PERFORMED AFTER 1950 AND PRIOR TO 1957 Act Sept. 1, 1954, ch. 1206, title IV, § 403, 68 Stat. 1098, as amended by acts Aug. 1, 1956, ch. 836, title IV, § 401, 70 Stat. 855; Aug. 27, 1958, Pub. L. 85–785, §§ 1–3, 72 Stat. 938, provided that where an individual has been em- ployed after 1950 and before Aug. 1, 1956, by an organiza- tion exempt from income tax under section 501(c)(3) of this title but which did not have in effect during the in- dividual’s period of employment a valid waiver certifi- cate, or, which failed to have the individual’s signature appear on the list of signatures of employees who con- curred in the filing of such certificate, where one was in effect, and the service performed by the individual would have constituted employment for purposes of title II of the Social Security Act (42 U.S.C. 401 et seq.) had such requirements been met, then under certain conditions, the remuneration paid was to be deemed re- muneration for employment for purposes of title II of the Social Security Act. Executive Documents TRANSFER OF FUNCTIONS Functions of Public Health Service, of Surgeon Gen- eral of Public Health Service, and of all other officers and employees of Public Health Service, and functions of all agencies of or in Public Health Service trans- ferred to Secretary of Health, Education, and Welfare by 1966 Reorg. Plan No. 3, 31 F.R. 8855, 80 Stat. 1610, ef- fective June 25, 1966, set out in the Appendix to Title 5, Government Organization and Employees. Coast and Geodetic Survey consolidated with Na- tional Weather Bureau in 1965 to form Environmental Science Services Administration by Reorg. Plan No. 2 of 1965, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318, set out in the Appendix to Title 5, Government Organiza- tion and Employees. Commissioned Officer Corps of En- vironmental Science Services Administration changed to Commissioned Officer Corps of National Oceanic and Atmospheric Administration, see 1970 Reorg. Plan No. 4, § 4(d), eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090, set out in the Appendix to Title 5. LINE ITEM VETO Pub. L. 105–34, title IX, § 968, Aug. 5, 1997, 111 Stat. 895, amending this section and enacting provisions set out as a note above, was subject to line item veto by the President, Cancellation No. 97–2, signed Aug. 11, 1997, 62 F.R. 43267, Aug. 12, 1997. For decision holding line item veto unconstitutional, see Clinton v. City of New York, 524 U.S. 417, 118 S.Ct. 2091, 141 L.Ed.2d 393 (1998). § 3122. Federal service In the case of the taxes imposed by this chap- ter with respect to service performed in the em- ploy of the United States or in the employ of any instrumentality which is wholly owned by the United States, including such service which is medicare qualified government employment (as defined in section 3121(u)(3)), including serv- ice, performed as a member of a uniformed serv- ice, to which the provisions of section 3121(m)(1) are applicable, and including service, performed as a volunteer or volunteer leader within the meaning of the Peace Corps Act, to which the provisions of section 3121(p) are applicable, the determination of the amount of remuneration for such service, and the return and payment of the taxes imposed by this chapter, shall be made by the head of the Federal agency or instrumen- tality having the control of such service, or by such agents as such head may designate. In the case of the taxes imposed by this chapter with respect to service performed in the employ of an international organization pursuant to a trans- fer to which the provisions of section 3121(y) are applicable, the determination of the amount of remuneration for such service, and the return and payment of the taxes imposed by this chap-