employee in or about a private home of the person by whom he is employed constitute domestic service in a private home of the employer. A private home is a fixed place of abode of an individual or family. A separate and distinct dwelling unit maintained by an individual in an apartment house, hotel, or other similar establishment may constitute a private home. If a dwelling house is utilized primarily as a boarding or lodging house for the purpose of supplying board or lodging to the public as a business enterprise, it is not a private home. In general, services of a household nature in or about a private home include services performed by cooks, waiters, butlers, housekeepers, governesses, maids, valets, baby sitters, janitors, laundresses, furnacemen, caretakers, handymen, gardeners, footmen, grooms, and chauffeurs of automobiles for family use. Remuneration for the services above enumerated is not within this exclusion from wages unless performed in or about a private home of the employer. Remuneration for services not of a household nature, such as services performed as a private secretary, tutor, or librarian, even though performed in the employer's home, is not within this exclusion from wages.

(k) Cash payments prior to 1955 for domestic services. (1) The term "wages" does not include cash remuneration paid in any calendar quarter prior to 1955 by an employer to an employee for domestic service in a private home of the employer unless both of the following tests are met:

(i) The cash remuneration paid by the employer to the employee in the calendar quarter for such service is $50 or more; and

(ii) Such employee is regularly employed by such employer in the calendar quarter in which the payment is made.

(2) The test relating to cash remuneration of $50 or more is based on remuneration paid in a calendar quarter rather than on remuneration earned during a calendar quarter. Furthermore, in determining whether $50 or more has been paid for domestic service in a private home of the employer, only cash remuneration for such service shall be taken into account. For meaning of the term "cash remuneration," see paragraph (i) of this section.

(3) For purposes of this exclusion, an individual is deemed to be regularly employed by an employer during a calendar quarter only if:

(i) Such individual performs domestic service in a private home of such employer for some portion of the day on at least 24 days (whether or not consecutive) during such calendar quarter; or

(ii) Such individual was regularly em. ployed (as determined under subdivision (1) of this subparagraph) in the performance of domestic service in a private home of such employer during the preceding calendar quarter (including the last calendar quarter of 1950).

(4) In determining whether an employee has performed domestic service in a private home of the employer on at least 24 days during a calendar quarter, there shall be counted as 1 day:

(i) Any day or portion thereof or which the employee actually performs such service; and

(ii) Any day or portion thereof on which the employee does not perform domestic service in a private home of the employer but with respect to which cash remuneration is paid or payable to the employee for such service, such as a day on which the employee is sick or on vacation.

An employee who on a particular day reports for work and, at the direction of his employer, holds himself in readiness to perform domestic service in a private home of the employer shall be considered to be engaged in the actual performance of such service on that day. For purposes of this exclusion a day is a period of 24 hours commencing at midnight and ending at midnight.

(5) (i) Domestic service in a private home of the employer performed on & farm operated for profit and services not in the course of the employer's trade or business are not within this exclusion from wages. For provisions relating to domestic service in a private home of the employer performed on a farm operated for profit and services performed prior to 1955, not in the course of the employer's trade or business, see §§ 404.1008 and 404.1010, respectively.

(ii) For provisions relating to the exclusion from wages after 1954 of cash remuneration for services not in the course of the employer's trade or business, see paragraph (1) of this section.

(iii) For provisions relating to the exclusion from wages of remuneration paid in any medium other than cash for domestic service in a private home of the employer, see paragraph (1) of this section.

(1) Cash payments after 1954 for domestic service and service not in the course of the employer's trade or business.

(1) The term "wages" does not include cash remuneration paid by an employer in any calendar quarter after 1954 to an employee for:

(1) Domestic service in a private home of the employer; or

(ii) Service, not in the course of the employer's trade or business, unless the cash remuneration paid in such quarter by the employer to the employee for such service is $50 or more.

(2) The test relating to cash remuneration of $50 or more is based on the remuneration paid in a calendar quarter rather than on the remuneration earned during a calendar quarter. It is immaterial whether the remuneration was earned before 1955 or after 1954.

In determining whether $50 or more has been paid either for domestic service in a private home of the employer or for service not in the course of the employer's trade or business, only cash remuneration for such service shall be taken into account. For meaning of the term "cash remuneration," see paragraph (i) of this section. If an employee receives cash remuneration from an employer in a calendar quarter for both types of services the $50 cash-remuneration test is to be applied separately to each type of service. If an employee receives cash remuneration from more than one employer in a calendar quarter for domestic service in a private home of the employer or for service not in the course of the employer's trade or business the $50 cash-remuneration test is to be applied separately to the remuneration received from each employer.

(3) An employer may, for purposes of the Act, elect to compute to the nearest dollar any payment of cash remuneration for domestic service in a private home of the employer which is more or less than a whole-dollar amount. (This also applies with respect to remuneration before 1955). For the purpose of the com putation to the nearest dollar, the payment of a fractional part of a dollar shall be disregarded unless it amounts to onehalf dollar or more, in which case it shall be increased to $1. For example, any amount actually paid between $4.50 and $5.49, inclusive, may be treated as $5 for purposes of the Act. If an employer elects this method of computation with respect to any payment of cash remuneration made in a calendar quarter for

domestic service in his private home, he must use the same method in computing each payment of cash remuneration of more or less than whole-dollar amount made to each of his employees in such calendar quarter for domestic service in his private home. Moreover, if an employer elects this method of computation with respect to payments of the prescribed character made in any calendar quarter, the amount of each 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 the regulations in this Part 404. Thus, the amount of cash payments so computed to the nearest dollar shall be used for purposes of determining whether such payment constitute wages, for purposes of applying the employee and employer tax rates to the wage payments, for purposes of any required record keeping, and for purposes of reporting and paying the employee tax and employer tax with respect to such wage payments.

(m) Payments for agricultural labor.-(1) Scope of this section. For purposes of the regulations in this section, the term "agricultural labor" means only such agricultural labor (see § 404.1008) as constitutes employment or is deemed to constitute employment by reason of the rules relating to included and excluded services contained in section 210(b) of the Act (see § 404.1007).

(2) Payments other than in cash. The term "wages" does not include remuneration paid in any medium other than cash for agricultural labor. For meaning of the term "cash remuneration," see paragraph (i) of this section.

(3) Cash payments. (i) The term "wages" does not include cash remuneration paid by an employer in the calendar year 1955 or 1956 to an employee for agricultural labor unless the cash remuneration paid in such year by the employer to the employee for such labor is $100 or more.

(ii) The term "wages" does not include cash remuneration paid by an employer in any calendar year after 1956 to an employee for agricultural labor unless the cash remuneration paid in such year by the employer to the employee for such labor is $150 or more, or unless the employee performs agricultural labor for the employer on 20 days or more during such year for cash remuneration computed on a time basis.

Example: On 18 days in 1957 A performs agricultural labor for X for cash remuneration of $8 per day, and X pays A $144 in such year. A performs no further service for X. Neither the $150-cash-remuneration test nor the 20-day test is met. Accordingly, the remuneration paid by X to A is not wages. If in 1957 A had performed agricultural labor for X on 20 days for cash remuneration of $7.20 per day, the $144 paid by X to A would have been wages because the 20-day test would have been met. Or if A had performed the 18 days of agricultural labor for cash remuneration of $8.50 per day and had been paid in full therefor in 1957, his cash remuneration of $153 would have been wages because the $150-cash-remuneration would have been met.

test

(4) Application of cash-remuneration test. (i) If an employee receives cash remuneration from an employer both for services which constitute agricultural labor and for services which do not constitute agricultural labor, only the amount of such remuneration which is attributable to agricultural labor shall be included in determining whether cash remuneration of $150 or more ($100 or more in 1955 or 1956) has been paid in the calendar year by the employer to the employee for agricultural labor.

Example: Employer X operates a store and also is engaged in farming operations. Employee A, who regularly performs services for X in connection with the operation of the store, works on X's farm when additional help is required for the farm activities. In the calendar year 1957, X pays A $140 in cash computed on a time basis for agricultural labor performed on 19 different days in such year, and $2,260 for services performed in connection with the operation of the store. Since the cash remuneration paid by X to A in the calendar year 1957 for agricultural labor is less than $150, the cash-remuneration test is not met. Since A performed agricultural labor for X on less than 20 days in 1957, the 20-day test set forth in section 209 (h) (2) of the Act is not met. The $140 paid by X to A in 1957 for agricultural labor does not constitute wages.

(ii) The test relating to cash remuneration of $150 or more ($100 or more in 1955 or 1956) is based on the cash remuneration paid in a calendar year rather than on the remuneration earned during a calendar year. It is immaterial if such cash remuneration is paid in a calendar year other than the year in which the agricultural labor is performed.

(iii) In determining whether $150 or more ($100 or more in 1955 or 1956) has been paid to an employee for agricultural labor, only cash remuneration for such labor shall be taken into account. If an

employee receives cash remuneration in any one calendar year from more than one employer for agricultural labor, the cash-remuneration test is to be applied with respect to the remuneration received by the employee from each employer in such calendar year for such labor.

(5) Application of 20-day test. (1) Only agricultural labor for which cash remuneration is computed on a time basis is taken into account in determining whether an employee performs such labor for such remuneration on 20 days or more during a calendar year after 1956. For purposes of the 20-day test, the amount of such remuneration is immaterial, and it is immaterial if, in addition to cash remuneration computed on a time basis, the remuneration for such labor also includes remuneration other than cash or remuneration which is not computed on a time basis. If cash remuneration paid to an employee after 1956 for agricultural labor is computed on a time basis, such cash remuneration does not constitute "wages" unless it is paid in a calendar year in which either the 20-day test or the $150-cash-remuneration test is met.

Example: Employer X employs A to construct fences on a farm owned by X. The work constitutes agricultural labor and is performed on 50 days in November and December 1957. A is not employed by X at any other time. A's remuneration consists of meals and lodging, $5 cash per day, and additional cash measured by the amount of fence constructed. X pays A $140 cash in December 1957 and $160 cash in January 1958, in full payment for the work. Inasmuch as A has performed agricultural labor for X on 50 days in 1957, for remuneration computed on a time basis, the 20-day test is met for 1957 and the $140 cash paid in 1957 is wages. It is immaterial that the $150-cashremuneration test is not met for 1957. Inasmuch as X has paid A $160 cash remuneration in 1958 for agricultural labor, the $150-cash-remuneration test is met for 1958 and the $160 cash paid in 1958 is wages. It is immaterial that the 20-day test is not met for 1958. If the remuneration paid by X to A in January 1958 had been in an amount less than $150, neither the $150-cash-remuneration test nor the 20-day test would have been met for the calendar year 1958, and the remuneration paid by X to A in such year would not have been wages.

(ii) For the purpose of determining whether an employee performs agricultural labor for an employer on 20 days or more during any calendar year after 1956, for cash remuneration computed

on a time basis, there shall be counted as 1 day:

(a) Any day or portion thereof on which the employee actually performs such labor for cash remuneration computed on a time basis; and

(b) Any day or portion thereof on which the employee does not perform agricultural labor but with respect to which cash remuneration is paid or payable to the employee for such labor, such as a day on which the employee is sick or on vacation.

An employee who on a particular day reports for work and, at the direction of his employer, holds himself in readiness to perform agricultural labor shall be considered to be engaged in the actual performance of such labor on that day. For purposes of the regulations in this section a day is a period of 24 hours commencing at midnight and ending at midnight.

Example: During the period of 20 days beginning April 11, 1957, and ending April 30, 1957, employee A was employed by employer X to perform agricultural labor on X's farm. The agreement provided that A would be furnished room and board at the farm and would be paid cash remuneration of $150 per month. On 1 day during the 20-day period A was sick and unable to work, and on another day X directed A to refrain from work because of weather conditions. At the termination of A's employment X paid A cash remuneration of $100 for the full 20day period. The 20-day test had been met and the $100 cash remuneration is wages.

(iii) If in any 1 calendar year an employee performs agricultural labor for more than one employer, the 20-day test is to be applied with respect to the agricultural labor performed by the employee in such year for each employer.

(n) Payments to employees for nonwork periods. (1) The term "wages" does not include any payment (other than vacation or sick pay) made by an employer to an employee for a period throughout which the employment relationship exists between the employer and the employee, but in which the employee does no work (other than being subject to call for the performance of work) for the employer, if such payment is made after the calendar month in which:

(1) The employee attains age 65, if the employee is a man, or if the employee is a woman to whom the payment is made before November 1956; or

(ii) The employee attains age 62, if the employee is a woman to whom the payment is made after October 1956.

(2) Vacation or sick pay is not within this exclusion from wages. (The term "sick pay" as used in this paragraph, includes "sick leave" payments made after Aug. 27, 1958, by a State, a political subdivision thereof, or an interstate instrumentality, to an employee for a period during which he was absent from work because of illness.) If the employee does any work for the employer in the period for which the payment is made, no remuneration paid by such employer to such employee with respect to such period is within this exclusion from wages.

Example: Mrs. A, an employee of X, attained the age of 62 on September 15, 1956, and discontinued the performance of regular work for X on September 30, 1956. Their employment relationship continued for several years until Mrs. A's death, and X paid Mrs. A $50 per month as consideration for Mrs. A's agreement to work when asked by X. The payment for each month was made on the first day of each succeeding month. After September 30, 1956, the only work performed by Mrs. A for X was performed on one day in October 1956. The payment made by X to Mrs. A on November 1 (for October 1956) is not excluded from wages under this exception, but the payments made thereafter are excluded from wages. The payment on November 1 was not excluded because Mrs. A worked for X on 1 day in October 1956. (Inasmuch as Mrs. A had attained age 62 in September 1956, the November 1 payment would have been excluded if Mrs. A had not performed any work for X in October 1956.)

(0) Payments to certain home workers. (1) The term "wages" does not include remuneration paid by an employer in any calendar quarter to an employee for services performed as a home worker who is an employee by application of the provisions in § 404.1003 (d) (1) (iii), unless the cash remuneration paid in such quarter by the employer to the employee for such services is $50 or more.

(2) The test relating to cash remuneration of $50 or more is based on remuneration for employment paid in a calendar quarter rather than on remuneration earned during a calendar quarter. If $50 or more of cash remuneration for employment is paid in a particular calendar quarter, it is immaterial whether the $50 is in payment for services performed during the quarter of payment or during any other quarter.

Example 1: A, a home worker, performs services for X, a manufacturer, in 1954 and

1955. In the performance of the homework A is an employee both in 1954 and in 1955. In March 1955, A returns to X articles made by A at home from materials received by A from X in 1954. X pays A cash remuneration of $50 for such work when the finished articles are delivered. The $50 includes $10 which represents remuneration for homework performed by A in 1954. The entire $50 is wages.

Example 2: Assume that the same transactions occur, but that A is not subject in 1954 to licensing requirements under the laws of the State in which the homework is performed. A, therefore, does not perform homework in 1954 as an employee of X by reason of section 210(k) (3) (C) of the Act in effect prior to 1955, and the $10 paid in 1955 for such work is not remuneration for employment. The remaining $40 for the homework performed in 1955 is remuneration for employment, but is excluded from wages by application of the $50 cash remuneration test.

(3) In the event an employee receives remuneration in any one calendar quarter from more than one employer for services performed as a home worker of the character described in subparagraph (1) of this paragraph, the regulations in this paragraph are to be applied with respect to the remuneration received by the employee from each employer in such calendar quarter for such services.

(4) This exclusion from wages has no application to remuneration paid for service performed as a home worker who is an employee under section 210(j) (2) of the Act (see § 404.1003 (c)), relating to common-law employees.

(5) If the cash remuneration paid in any calendar quarter by an employer to an employee for services performed as a home worker of the character described in subparagraph (1) of this paragraph is $50 or more, then no remuneration, whether in cash or in any medium other than cash, paid by the employer to the employee in such calendar quarter for such services is excluded from wages under this exception. For meaning of the term "cash remuneration," see paragraph (1) of this section.

(6) For provisions relating to whether a home worker is an employee under section 210(k) (3) (C) of the Act in effect prior to 1955, see § 404.1003(d) (1) (iii).

(p) Tips. The term "wages" does not include remuneration received by an employee after December 1965 in the form of tips if:

(1) The tips are paid in any medium other than cash; or

(2) The cash tips received by an employee in any calendar month in the

course of his employment by an employer are less than $20. If the cash tips received by an employee in a calendar month after December 1965 in the course of his employment by an employer amount to $20 or more, none of the cash tips received by the employee in such calendar month are excluded from the term "wages" under this section. The cash tips to which this section applies include checks and other monetary media of exchange. Tips received by an employee in any medium other than cash, such as passes, tickets, or other goods or commodities do not constitute wages. If an employee in any calendar month performs services for two or more employers and receives tips in the course of his employment by each employer, the $20 test is to be applied separately with respect to the cash tips received by the employee in respect of his services for each employer and not to the total cash tips received by the employee during the month. As to the time tips are deemed paid, see § 404.1026(d). For provisions relating to the treatment of tips received by an employee prior to 1966, see § 404.1027(t) (3).

(q) Payments to members of the uniformed services. (1) Except as provided in subparagraph (2) of this paragraph, the term "wages" as applied to remuneration for services by a member of the uniformed services of the United States does not include any remuneration for such services other than his basic pay as described in section 102 (10) of the Servicemen's and Veterans' Survivor Benefits Act (Public Law 881, 84th Cong., 38 U.S.C. 401(1), 403; 72 Stat. 1126).

(2) In each calendar quarter occurring after 1967 in which an individual is paid wages for service as a member of a uniformed service, he is deemed to have been paid wages (in addition to the wages actually paid to him for such service) of:

(i) $100 if the wages actually paid to him in such quarter for such services were $100 or less;

(ii) $200 if the wages actually paid to him in such quarter for such services were $100 but not more than $200; or (iii) $300 in any other case.

(r) Payments to "volunteers and volunteer leaders" in the Peace Corps. The term "wages" as applied to remuneration for services as a "volunteer" or "volunteer leader" enrolled under the provisions of the Peace Corps Act (P.L. 87-293, 75 Stat. 612), does not include any amount paid for such service in excess of or in addition to the amounts certified