the citizenship or residence of the on employing him is material only ase it has a bearing in determining ther the vessel is an American vessel. definitions of the terms "vessel" and craft", see paragraph (c) (2) (v) of 3306 (c)-2. For definitions of the is "American vessel" and "American raft", see § 31.3306 (m)-1.

e) Since the only services performed side the United States which consti

employment are those described in ion 3306 (c) and paragraph (c) of 3306(c)-2 (relating to services perned outside the United States on or Connection with an American vessel American aircraft), services perned outside the United States on or Connection with a vessel not an Amer1 vessel, or an aircraft not an Ameri= aircraft, do not constitute employnt in any event.

f) The provisions of section 3306(c) and of this section, insofar as they ate to services performed on or in contion with an aircraft not an Ameri

aircraft, apply only to services formed after 1961 for which remuation is paid after 1961.

D. 6658, 28 F.R. 6637, June 27, 1963]

1.3306(c) (5) Statutory provisions; definitions; employment; family employment.

(b) Under paragraph (a) (1) and (2) of this section, the exception is conditioned solely upon the family relationship between the employee and the individual employing him. Under paragraph (a) (3) of this section, in addition to the family relationship, there is a further requirement that the son or daughter shall be under the age of 21, and the exception continues only during the time that such son or daughter is under the age of 21.

(c) Services performed in the employ of a corporation are not within the exception. Services performed in the employ of a partnership are not within the exception unless the requisite family relationship exists between the employee and each of the partners comprising the partnership.

(6) Service performed in the employ of the United States Government or of an instrumentality of the United States which is

(A) Wholly or partially owned by the United States, or

(B) Exempt from the tax imposed by section 3301 by virtue of any provision of law which specifically refers to such section (or the corresponding section of prior law) in granting such exemption;

[Sec. 3306 (c) (6) as amended by sec. 531 (c) Social Security Amendments 1960]

SEC. 531. [Social Security Amendments of 1960] *

* *

(g) Notwithstanding section 203 (b) of the Farm Credit Act of 1959 [73 Stat. 390], sections 3305(b), 3306(c) (6), and 3308 of the Internal Revenue Code of 1954 * * shall be applicable, according to their terms, to the Federal land banks, Federal intermediate credit banks, and banks for cooperatives. [T.D. 6658, 28 F.R. 6638, June 27, 1963]

§ 31.3306 (c) (6)-1 Services in employ of United States or instrumentality thereof.

(a) Services in employ of United States or wholly-owned instrumentality thereof. Services performed in the employ of the United States Government, except as provided in section 3306 (n) (see § 31.3306 (n)-1), are excepted from employment.

Services performed in the employ of an instrumentality of the United States which is wholly owned by the United States also are excepted from employment.

(b) Services in employ of instrumentality not wholly owned by United States (1) Services performed after 1961. Services performed after 1961 in the employ of an instrumentality of the United States which is partially owned by the United States are excepted from employment, if the remuneration for such service is paid after 1961. Services performed after 1961 in the employ of an instrumentality of the United States which is neither wholly owned nor partially owned by the United States are excepted from employment if (i) the instrumentality is exempt from the tax imposed by section 3301 by virtue of any provision of law which specifically refers to section 3301 or the corresponding section of prior law in granting exemption from such tax, and (ii) the remuneration for such service is paid after 1961. For provisions which make general exemptions from Federal taxation ineffectual as to the tax imposed by section 3301, see § 31.3308-1.

(2) Services performed before 1962. Services performed in the employ of an instrumentality of the United States which is not wholly owned by the United States are excepted from employment if the instrumentality is exempt from the tax imposed by section 3301 by virtue of any other provision of law, and (i) the services are performed before 1962 or (ii) remuneration for the services is paid before 1962.

[T.D. 6658, 28 F.R. 6638, June 27, 1963] § 31.3306 (c) (7) Statutory provisions; definitions; employment; services in employ of States or their political subdivisions or instrumentalities.

SEC. 3306. Definitions. * * *

(c) Employment. For purposes of this chapter, the term "employment" means

* any service, of whatever nature, performed * * by an employee for the person employing him * except

*

(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 by one or more States or political subdivisions; and any service performed in the employ of any instrumentality of one or more States or potitical subdivision to the extent that the instrumentality is, with respect to such serv

ice, immune under the Constitution of the United States from the tax imposed by sec tion 3301;

§ 31.3306 (c) (7)-1 Services in employ of States or their political subdivi sions or instrumentalities.

(a) Services performed in the employ of any State, or of any political subdivision thereof, are excepted from employment. Services performed in the employ of an instrumentality of one or more States or political subdivisions thereof are excepted if the instrumentality is wholly owned by one or more of the foregoing. Services performed in the employ of an instrumentality of one or more of the several States or political subdivisions thereof which is not wholly owned by one or more of the foregoing are excepted only to the extent that the instrumentality is with respect to such services immune under the Constitution of the United States from the tax imposed by section 3301.

(b) For provisions relating to the term "State" see § 31.3306(j)-1.

[T.D. 6516, 25 F.R. 13032, Dec. 20, 1960, as amended by T.D. 6658, 28 F.R. 6638, June 27, 1963]

(8) Service performed in the employ of a religious, charitable, educational, or other organization described in section 501 (c) (3) which is exempt from income tax under section 501(a);

[Sec. 3306(c) (8) as amended by sec. 533, Social Security Amendments 1960]

[T.D. 6638, 28 F.R. 6638, June 27, 1968]

§ 31.3306 (c) (8)-1 Services in employ of religious, charitable, educational, or certain other organizations exempt from income tax.

(a) Services performed after 1961. Services performed by an employee after 1961 in the employ of a religious, charitable, educational, or other organization described in section 501(c) (3) which is exempt from income tax under section 501(a) are excepted from employment, if the remuneration for such service is

aid after 1961. For provisions relating exemption from income tax of an oranization described in section 501(c) ), see Part 1 of this chapter (Income ax Regulations).

(b) Services performed before 1962. D) Services performed by an employee 1 the employ of an organization decribed in section 3306(c) (8) as in effect efore 1962, that is, a corporation, comunity chest, fund, or foundation, oranized and operated exclusively for eligious, charitable, scientific, testing for public safety, literary, or educational urposes, or for the prevention of cruelty o children or animals, no part of the net arnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, are excepted from employment if (i) the services are performed before 1962, or (ii) remuneration for the services is paid before 1962.

(2) Any organization which is an organization of a type described in section 501 (c) (3) and which

(i) Is exempt from income tax under section 501(a), or

(ii) Has been denied exemption from income tax under section 501 (a) by reason of the provisions of section 503 or 504, relating to prohibited transactions and to accumulations out of income, respectively,

is an organization of a type described in section 3306(c) (8) as in effect before 1962. An organization which would be an organization of a type described in section 501(c) (3) except for those provisions of section 501(c) (3) which are not contained in section 3306(c) (8) as in effect before 1962 (provisions relating to participation or intervention in a political campaign on behalf of a candidate for public office) is also an organization of a type described in section 3306(c) (8) as in effect before 1962.

[T.D. 6658, 28 F.R. 6638, June 27, 1963] § 31.3306(c) (9) Statutory provisions; definitions; employment; services performed by an employee or employee representative as defined in section 1 of the Railroad Unemployment Insurance Act.

SEC. 3306. Definitions. *

(c) Employment. For purposes of this chapter, the term "employment" means

any service, of whatever nature, per

(9) Service performed by an individual as an employee or employee representative as defined in section 1 of the Railroad Unemployment Insurance Act (52 Stat. 1094, 1095; 45 U.S.C. 351);

§ 31.3306(c) (9)-1 Railroad industry; services performed by an employee or an employee representative under the Railroad Unemployment Insurance Act.

(a) Services performed by an individual as an "employee" or as an "employee representative", as those terms are defined in section 1 of the Railroad Unemployment Insurance Act, as amended, are excepted from employment.

(b) Section 1 of the Railroad Unemployment Insurance Act (45 U.S.C. 351), as amended, provides, in part, as follows:

For the purposes of this Act, except when used in amending the provisions of other Acts

(a) The term "employer" means any carrier (as defined in subsection (b) of this section), and any company which is directly or indirectly owned or controlled by one or more such carriers or under common control therewith, and which operates any equipment or facility or performs any service (except trucking service, casual service, and the casual operation of equipment or facilities) in connection with the transportation of passengers or property by railroad, or the receipt, delivery elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad, and any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of any such employer: Provided, however, That the term "employer" shall not include any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general steamrailroad system of transportation, but shall not exclude any part of the general steamrailroad system of transportation now or hereafter operated by any other motive power. The Interstate Commerce Commission is hereby authorized and directed upon request of the Board, or upon complaint of any party interested, to determine after hearing whether any line operated by electric power falls within the terms of this proviso. The term "employer" shall also include railroad associations, traffic associations, tariff bureaus, demurrage bureaus, weighing and inspection bureaus, collection agencies, and other associations, bureaus, agencies, organizations controlled and maintained wholly or principally by two or more employers as hereinbefore defined and engaged in the performance of services in connection with or incidental to railroad transportation;

or

and railway labor organizations, national in scope, which have been or may be organized in accordance with the provisions of the Railway Labor Act, and their State and National legislative committees and their general committees and their insurance departments and their local lodges and divisions, established pursuant to the constitution and bylaws of such organizations. The term "employer" shall not include any company by reason of its being engaged in the mining of coal, the supplying of coal to an employer where delivery is not beyond the mine tipple, and the operation of equipment or faciilties therefor, or in any of such activities.

(b) The term "carrier" means an express company, sleeping-car company, or carrier by railroad, subject to part I of the Interstate Commerce Act.

(c) The term "company" includes corporations, associations, and joint-stock companies.

(d) The term "employee" (except when used in phrases establishing a different meaning) means any individual who is or has been (1) in the service of one or more employers for compensation, or (ii) an employee representative. The term "employee" shall include an employee of a local lodge or division defined as an employer in section 1 (a) only if he was in the service of a carrier on or after August 29, 1935. The term “employee" includes an officer of an employer.

The term "employee" shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple.

(e) An individual is in the service of an employer whether his service is rendered within or without the United States if (1) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or he is rendering professional or technical services and is integrated into the staff of the employer, or he is rendering, on the property used in the employer's operations, other personal services the rendition of which is integrated into the employer's operations, and (i) he renders such service for compensation: Provided, however, That an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general committee of a railwaylabor-organization employer, not conducting the principal part of its business in the United States only when he is rendering service to it in the United States; and an individual shall be deemed to be in the service of such a local lodge or division only if (1) all, or substantially all, the individuals constituting its membership are employees of an employer conducting the principal part of its business in the United States; or (2) the headquarters of such local lodge or divi

sion is located in the United States; and an individual shall be deemed to be in the service of such a general committee only if (1) he is representing a local lodge or division described in clauses (1) or (2) immediately above; or (2) all, or substantially all, the individuals represented by it are employee of an employer conducting the principal par of its business in the United States; or (3) he acts in the capacity of a general chairman or an assistant general chairman of a genera committee which represents individuals ren dering service in the United States to ar employer, but in such case if his office o headquarters is not located in the United States and the individuals represented by such general committee are employees of an employer not conducting the principal part of its business in the United States, only such proportion of the remuneration for such service shall be regarded as compensation as the proportion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its jurisdiction, unless such mileage formula is inapplicable, in which case the Board may prescribe such other formula as it finds to be equitable, and if the application of such mileage formula, or such other formula as the Board may prescribe, would result in the compensation of the individual being less than 10 per centum of his remuneration for such service no part of such remuneration shall be regarded as compensation: Provided further, That an individual not a citizen or resident of the United States shall not be deemed to be in the service of an employer when rendering service outside the United States to an employer who is required under the laws applicable in the place where the service is rendered to employ therein, in whole or in part, citizens or residents thereof.

(f) The term "employee representative" means any officer or official representative of a railway labor organization other than a labor organization included in the term employer as defined in section 1(a) who before or after August 29, 1935, was in the service of an employer as defined in section 1 (a) and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act, and any individual who is regularly assigned to or regularly employed by such officer or official representative in connection with the duties of his office.

*

(i) The term "compensation” means any form of money remuneration, including pay for time lost but excluding tips, paid for services rendered as an employee to one or more employers, or as an employee representative: Provided, however, That in computing the compensation paid to any employee, no part of any month's compensation in excess of $300 for any month before July 1, 1954, or in excess of $350 for any month

fter June 30, 1954, and before the calendar onth next following the month [May] in hich this Act was amended in 1959, or in xcess of $400 for any month after the month May] in which this Act was so amended, hall be recognized. A payment made by an mployer to an individual through the emloyer's pay roll shall be presumed, in the bsence of evidence to the contrary, to be ompensation for service rendered by such ndividual as an employee of the employer n the period with respect to which the payment is made. An employee shall be deemed to be paid, "for time lost" the amount he is paid by an employer with respect to an identifiable period of absence from the active service of the employer, including absence on account of personal injury, and the amount he is paid by the employer for loss of earnings resulting from his displacement to a less remunerative position or occupation. If a payment is made by an employer with respect to a personal injury and includes pay for time lost, the total payment shall be deemed to be paid for time lost unless, at the time of payment, a part of such payment is specifically apportioned to factors other than time lost, in which event only such part of the payment as is not so apportioned shall be deemed to be paid for time lost. Compensation earned in any calendar month before 1947 shall be deemed paid in such month regardless of whether or when payment will have been in fact made, and compensation earned in any calendar year after 1946 but paid after the end of such calendar year shall be deemed to be compensation paid in the calendar year in which it will have been earned if it is so reported by the employer before February 1 of the next succeeding calendar year or, if the employee establishes, subject to the provisions of section 8, the period during which such compensation will have been earned.

(r) The term "Board" means the Railroad Retirement Board.

(s) The term "United States", when used in a geographical sense, means the States, Alaska, Hawaii, and the District of Columbia.

[Sec. 1, Railroad Unemployment Insurance Act, as amended by secs. 1 and 2, Act of June 20, 1939, 53 Stat. 845; secs. 1 and 3, Act of Aug. 13, 1940, 54 Stat. 785, 786; sec. 15, Act of Apr. 8, 1942, 56 Stat. 210; secs, 1 and 2, Act of July 31, 1946, 60 Stat. 722; sec. 302, Act of Aug. 31, 1954, 68 Stat. 1040; sec. 301, Act of May 19, 1959, Pub. Law 86-28, 73 Stat. 30]

[T.D. 6516, 25 F.R. 13032, Dec. 20, 1960, as amended by T.D. 6658, 28 F.R. 6638, June 27, 1963]

§ 31.3306 (c) (10) Statutory provisions; definitions; employment; services in the employ of certain organizations exempt from income tax, performed in calendar quarter for remuneration less than $50; services performed in the employ of a school, college, or university by certain students.

SEC. 3306. Definitions. *

(c) Employment. For purposes of this chapter, the term "employment" means * any service, of whatever nature, performed * * * by an employee for the person employing him * * * except

(10) (A) Service performed in any calendar quarter in the employ of any organization exempt from income tax under section 501 (a) (other than an organization described in section 401(a)) or under section 521, if the remuneration for such service is less than $50, or

(B) Service performed in the employ of a school, college, or university, if such service is performed by a student who is enrolled and is regularly attending classes at such school, college, or university;

[Sec. 3306 (c) (10) as amended by sec, 534, Social Security Amendments 1960]

[T.D. 6658, 28 F.R. 6639, June 27, 1963] § 31.3306 (c) (10)-1 Services in the employ of certain organizations exempt from income tax.

(a) In general. (1) This section deals with the exception from employment of certain services performed in the employ of any organization exempt from income tax under section 501 (a) (other than an organization described in section 401 (a)) or under section 521. (See the provisions of §§ 1.401-1, 1.501(a)-1, and 1.521-1 of this chapter (Income Tax Regulations).) If the services meet the tests set forth in paragraphs (b), (c), (d), or (e) of this section, the services are excepted.

(2) See also § 31.3306 (c) (8)-1 for provisions relating to the exception of services performed in the employ of religious, charitable, educational, or certain other organizations exempt from income tax; § 31.3306 (c) (10)-2 for provisions relating to the exception of services performed by certain students in the employ of a school, college, or university; and § 31.3306 (c) (10)-3 for provisions relating to the exception of services performed before 1962 in the employ of certain employees' beneficiary associations.

(b) Remuneration less than $50 for calendar quarter. Services performed