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services performed by the individual during the retroactive period covered by the SS-15b would have constituted employment as defined in section 210 of the Act if he had signed the SS-15b;

(8) The individual's name appeared on an SS-15a supplement filed by the organization before July 30, 1965, or the individual filed a request as provided in paragraph (b) (1) (iv) of this section but the list or request was not effective for the services involved;

(9) The organization paid any amount as taxes imposed by sections 3101 and 3111 of the Internal Revenue Code of 1954 (or corresponding provisions of prior law) with respect to such remuneration;

(10) A part of such taxes was paid on or before the due date of the tax return for the calendar quarter ending June 30, 1965; and

(11) If a refund or credit was obtained on any part of such taxes, the refund or credit (other than a credit or refund which would be allowed if the services constituted employment for purposes of ch. 21 of the Internal Revenue Code of 1954) (including any interest under sec. 6611 of such Code) is repaid on or before December 31, 1967. The request will not be approved unless it contains a statement that the refund or credit has been repaid.

(e) Filing of request by individual. Any request described in paragraphs (b) (1) (iv), (c) (1), or (d) (1) of this section shall be filed at the Social Security Administration district office which services the organization for which the employee's services were performed and shall be accompanied by the statement of the organization as provided in paragraph (f) of this section. While no particular form need be used in preparing the request, the request must be in writing, signed and dated by the employee, or by the fiduciary, or survivor, and shall include the following information:

(1) The name and address of the organization for which such services were performed;

(2) The name, address, and social security account number of the employee, and name and address of the individual filing the request if not the employee;

(3) The period covered by the request, and in the case of requests filed under paragraphs (c) or (d) of this section, a statement that the organization's

SS-15 or SS-15b is effective for such period;

(4) A statement that the individual or the employee has not obtained a refund or credit and will not apply for a refund or credit (other than a refund or credit which would be allowable if the services had constituted employment) from the district director of internal revenue of any part of the employee tax under the Federal Insurance Contributions Act paid on the remuneration received by the employee from the organization during the period covered by the request or, if such refund or credit had been obtained, the amount of the refund or credit was duly repaid as provided in paragraphs (b), (c), or (d) of this section as is appropriate;

(5) A statement whether the employee was employed by the organization on the date it filed its SS-15; or in the case of requests filed under paragraph (b) of this section, a statement whether the employee was still employed by the organization and, if not, the date he discontinued his employment with the organization;

(6) A request that all remuneration received by the employee for services performed for the organization during the period covered by the request with respect to which employer and employee taxes were paid be deemed to constitute remuneration for employment to the extent authorized under this section; and

(7) With respect to requests filed under the law in effect prior to July 30, 1965, a statement that the employee understands that any services he may perform for the organization after the calendar quarter in which the request is filed for remuneration of $50 or more in a calendar quarter will be services in employment within the meaning of title II of the Act without regard to whether or not he concurred in the filing of the waiver certificate by the organization and that employer-employee taxes will apply to all wages received for such services. Where the request is filed by someone other than the employee, the request shall be accompanied by evidence showing such person's authority to make the request.

(f) Supporting statement by organization. The request of an employee described in paragraphs (b) (1) (iv), (c) (1), or (d) (1) of this section shall be accompanied by a statement of the organization for which the employee's services were performed incorporating the sub

stance of each of the requirements listed in paragraphs (b), (c), or (d) of this section as is appropriate The organization's statement, while not required to follow any particular form, shall show all employer identification numbers used by the organization, the date it filed a certificate with the district director of internal revenue pursuant to section 3121 (k) (1) of the Internal Revenue Code of 1954 (or corresponding provisions of prior law), and if it had not filed such certificate the reason for not doing so. If a refund or credit had been obtained on any part of the employer and employee tax paid on remuneration received by the employee for services performed during the period covered by the request (other than a refund or credit which would be allowable if the services had constituted employment) the statement shall show whether such refund or credit has been repaid, the date of repayment and the district director of internal revenue to whom the repayment was made. The statement of the organization shall also show the district director of internal revenue with whom returns, pursuant to § 31.6011(a)-1 of Title 26 of the Code of Federal Regulations are filed. The statement must be signed by the president or a principal officer of the organization who shall certify that the statement is correct to the best of his knowledge and belief.

(g) Filing of request forms prepared by organization. An organization having individuals in its employ, including former employees, to whom this section applies may, if it so desires, prepare a form or forms for use by an individual or by individuals in making requests under this section. Any such form shall provide space for the signature of the individual or individuals and shall include the same information as described in paragraphs (b), (c), or (d) of this section as is appropriate. Any form used by more than one individual, and any form used by one individual which is signed and returned to the organization, shall be submitted by the organization, together with a statement containing the information described in paragraphs (b), (c), or (d) of this section as is appropriate to the Social Security Administration district office which services the organization. An individual is not required to use a form prepared by the organization in filing his request.

[32 F.R. 7764, May 27, 1967; 32 F.R. 8281, June 9, 1967]

§ 404.1017 Railroad industry: employ. ees and employee representatives under section 1532 of the Internal Revenue Code of 1939 and section 3231 of the Internal Revenue Code of 1954.

Except as otherwise set forth in Subpart O of this part, services performed by an individual as an "employee" or as an "employee representative," as those terms are defined in section 1532 of subchapter B of chapter 9 of the Internal Revenue Code of 1939 and section 3231 of the Internal Revenue Code of 1954, are excepted from employment.

[32 F.R. 7766, May 27, 1967]

§ 404.1018 Organizations exempt from income tax; remuneration less than $50 for services in calendar quarter. Services performed by an employee in a calendar quarter in the employ of an organization exempt from income tax under section 101 of the Internal Revenue Code of 1939, or under section 501 (a) (other than an organization described in section 401(a)) or section 521 of the Internal Revenue Code of 1954, are excepted from employment, if the remuneration for the services is less than $50. The test relating to remuneration of $50 is based on the remuneration earned during a calendar quarter rather than on the remuneration paid in a calendar quarter. The exception applies separately with respect to each organization for which the employee renders services in a calendar quarter. The type of services performed by the employee and the place where the services are performed are immaterial; the statutory tests are the character of the organization in the employ of which the services are performed and the amount of the remuneration for services performed by the employee in the calendar quarter.

Example 1. X is a local lodge of a fraternal organization and is exempt from income tax under section 501 (a) of the Internal Revenue Code of 1954 as an organization of the character described in section 501 (c) (8) of such Code. X has two paid employees, A, who serves exclusively as recording secretary for the lodge, and B, who performs services for the lodge as janitor of its clubhouse. For services performed during the first calendar quarter of 1955 (that is, Jan. 1, 1955, through Mar. 31, 1955, both dates inclusive) A earns a total of $30. For services performed during the same calendar quarter B earns $180. Since the remuneration for the services performed by A during such quarter is less than $50, all of such services are excepted

from employment, and none of the remuneration for such services constitute wages. Since the remuneration for the services performed by B during such quarter, however, is not less than $50, none of such services are excepted from employment, and all of the remuneration for such services (that is, $180) constitutes wages, as and when paid.

Example 2. The facts are the same as in example (1), above, except that on April 1, 1955, A's salary is increased and, for services performed during the calendar quarter beginning on that date (that is, Apr. 1, 1955, through June 30, 1955, both dates inclusive) A earns a total of $60. Although all of the services performed by A during the first quarter were excepted from employment, none of A's services performed during the second quarter are excepted since the remuneration for such services is not less than $50. All of the remuneration for services performed during the second quarter (that is, $60) constitutes wages, as and when paid.

Example 3. The facts are the same as in example (1), above, except that A earns $120 for services performed during the year 1955, and such amount is paid to him in a lump sum at the end of the year. The services performed by A in any calendar quarter during the year are excepted if the portion of the $120 attributable to services performed in that quarter is less than $50. If, however, the portion of the $120 attributable to services performed in any calendar quarter during the year is not less than $50, the services during the quarter are not excepted, and that portion of the remuneration attributable to his services in that quarter constitutes wages. (See § 404.1016, relating to services performed in the employ of religious, charitable, educational, and other organizations exempt from income tax; § 404.1015 relating to services performed by a minister of a church in the exercise of his ministry and by a member of a religious order in the exercise of duties required by such order; § 404.1019, relating to services performed in the employ of a school, college, or university by certain students; and § 404.1022, relating to services performed by certain student nurses and hospital interns.)

[32 F.R. 7767, May 27, 1967] § 404.1019

Students employed by school, colleges, or universities. (a) The term "school, college, or university" within the meaning of this exception is to be taken in its commonly or generally accepted sense. It does not, however, include any school, college, or university that is an instrumentality, or an integral part of, a State or a political subdivision of a State. Services for such a school, college, or university constitute "employment" only if included under an

agreement entered into between the Secretary and the State pursuant to section 218 of the Act.

(b) Services performed in the employ of a school, college, or university as defined in paragraph (a) of this section (whether or not such organization is exempt from income tax) are excepted from employment, if the services are performed by a student who is both enrolled in and regularly attending classes at such school, college, or university.

(c) For purposes of this exception, the amount of remuneration for services performed by the employee in the calendar quarter, the type of services performed by the employee, and the place where the services are performed are immaterial; the statutory tests are the character of the organization in the employ of which the services are performed, and the status of the employee as student enrolled and regularly attending classes at the school, college, or university in the employ of which he performs the services.

(d) The status of the employee as a student performing the services shall be determined on the basis of the relationship of such employee with the organization for which the services are performed. Thus, an employee who performs services in the employ of a school, college, or university as an incident to and for the purpose of pursuing a course of study at such school, college, or university has the status of a student in the performance of such services. (For provisions relating to domestic service performed by a student in a local college club, or local chapter of a college fraternity or sorority, see § 404.1009.) [32 F.R. 7767, May 27, 1967]

§ 404.1020 Foreign governments.

(a) Services performed by an employee in the employ of a foreign government are excepted from employment irrespective of the citizenship or restdence of the employee and irrespective of whether the foreign government grants an equivalent exemption with respect to similar services performed in the foreign country by citizens of the United States. (However, see paragraph (b) of this section relating to such service by a citizen of the United States.) The exception includes not only services performed by ambassadors, ministers, and other diplomatic officers and employees but also services performed as a consular or other

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(1) The instrumentality is wholly owned by the foreign government;

(2) The services are of a character similar to those performed in foreign countries by employees of the U.S. Government or of an instrumentality thereof; and

(3) The Secretary of State certifies to the Secretary of the Treasury that the foreign government, with respect to whose instrumentality and employees thereof exemption is claimed, grants an equivalent exemption with respect to services performed in the foreign country by employees of the U.S. Government and of instrumentalities thereof. (However, see paragraph (b) of this section relating to such service by a citizen of the United States.)

(b) Effective with taxable years ending on or after December 31, 1960, service performed in the United States by a citizen of the United States in the employ of instrumentalities of a foreign government which service is excepted from employment under the provisions of paragraph (a) of this section, is treated as service in self-employment under the provisions of section 211 of the Act.

[32 F.R. 7767, May 25, 1967] § 404.1022

interns.

Student nurses and hospital

(a) Services performed as a student nurse in the employ of a hospital or a nurses' training school are excepted from employment, if the student nurse is enrolled and regularly attending classes in a nurses' training school, and such

nurses' training school is chartered or approved pursuant to State law.

(b) Services performed before 1966 as an intern (as distinguished from a resident doctor or a resident-in-training) in the employ of a hospital are excepted from employment, if the intern has completed a 4 years' course in a medical school chartered or approved pursuant to State law.

[32 F.R. 7767, May 25, 1967]
§ 404.1023

Fishing-prior to 1955.

(a) In general. Subject to the limitations prescribed in paragraphs (b) and (c) of this section, the services described in this paragraph, if performed before 1955, are excepted from employment; any of such services performed after 1954, however, are not excepted from employment. Services (except those referred to in paragraphs (b) and (c) of this section) performed by an individual in the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish (for example, oysters, clams, and mussels), crustacea (for example, lobsters, crabs, and shrimps), sponges, seaweeds, or other aquatic forms of animal and vegetable life are excepted from employment. The exception extends to services performed as an officer or member of the crew of a vessel while the vessel is engaged in any such activity whether or not the officer or member of the crew is himself so engaged. In the case of an individual who is engaged in any such activity in the employ of any person, services performed by such individual in the employ of such person as an ordinary incident to any such activity are also excepted from employment. Similarly, for example, the shore services of an officer or member of the crew of a vessel engaged in any such activity are excepted if such services are an ordinary incident to any such activity. Services performed as an ordinary incident to any such activity may include, for example, services performed in such cleaning, icing, and packing of fish as are necessary for the immediate preservation of the catch.

(b) Salmon and halibut fishing. Services performed prior to 1955 in connection with the catching or taking of salmon or halibut, for commercial purposes, are not within the exception. Thus, neither the services of an officer or member of the crew of a vessel (irrespective of its tonnage) which is engaged in the catching or taking of salmon or 491

halibut for commercial purposes, nor the services of any other individual in connection with such activity, are within the exception.

(c) Vessels of more than 10 net tons. Services described in paragraph (a) of this section performed on or in connection with a vessel of more than 10 net tons are not within the exception. For purposes of the exception, the tonnage of the vessel shall be determined in the manner provided for determining the register tonnage of merchant vessels under the laws of the United States. [32 F.R. 7768, May 25, 1967]

§ 404.1024 Delivery and distribution of newspapers, shopping news, and magazines.

(a) Services of individuals under age 18. Services performed by an employee under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution (as, for example, by a regional distributor) to any point for subsequent delivery or distribution, are excepted from employment. Thus, the services performed by an employee under the age of 18 in making house-to-house delivery or sale of newspapers or shopping news, including handbills and other similar types of advertising material, are excepted from employment. The services are excepted irrespective of the form or method of compensation. Incidental services by the employee who makes the house-to-house delivery, such as services in assembling newspapers, are considered to be within the exception. The exception continues only during the time that the employee is under the age of 18.

(b) Service of individuals of any age. Services performed by an employee 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 retention of the excess of such price over the amount at which the newspapers or magazines are charged to him, are excepted from employment. The services are excepted whether or not the employee is guaranteed a minimum amount of compensation for such services, or is entitled to be credited with the unsold newspapers or magazines turned back. Moreover, the services are excepted without regard to the age of the employee. Services performed other than at the time of sale to

the ultimate consumer are not within the exception. Thus, the services of a regional distributor which are antecedent to but not immediately part of the sale to the ultimate consumer are not within the exception. However, incidental services by the employee who makes the sale to the ultimate consumer, such as services in assembling newspapers or in taking newspapers or magazines to the place of sale, are considered to be within the exception.

[32 F.R. 7768, May 27, 1967]

§ 404.1024a Service performed in Guam by a resident of the Philippines.

Service performed after 1960 by a resident of the Republic of the Philippines while in Guam on a temporary basis as a nonimmigrant alien admitted pursuant to section 101 (a) (15) (h) (ii) of the Immigration and Nationality Act is excepted from employment, irrespective of the nature of his service or by whom he is employed.

[32 F.R. 7768, May 27, 1967]

§ 404.1025 International organizations.

(a) Services performed by an employee in the employ of an organization of the class specified in section 210(a) (15) of the Act as amended (sec. 210(a) (17) of the Act in effect prior to 1955) are excepted. (However, see paragraph (b) of this section relating to service for such an organization performed by a citizen of the United States.) For an organization to be within the statutory classification the following conditions must be met:

(1) It must be a public international organization in which the United States participates pursuant to treaty or authority of an act of Congress authorizing, or making an appropriation for, such participation;

(2) It must have been designated by executive order to be entitled to enjoy the privileges, exceptions, and immunities provided in the International Organizations Immunities Act;

(3) The designation must be in effect, and all conditions and limitations thereof must be met.

Such services will not be excepted if any of the foregoing conditions are not met, nor will they be excepted if such designation is withheld, or after such designation is withdrawn, by executive order from the employing organization.

(b) Effective with taxable years ending on or after December 31, 1960, serv

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