« PreviousContinue »
of her deceased former husband, who (A) is her son, daughter, or legally adopted child and (B) is entitled to a child's insurance benefit on the basis of the wages and self-employment income of her deceased former husband.
DEDUCTIONS FROM DEPENDENT'S BENEFITS BECAUSE OF WORK BY. OLD-AQE INSURANCE BENEFICIARY.
(c) Deduction shall be made from any wife's, husband's? or child's insurance benefit to which a wife, husband, or child is entitled, until the total of such deductions equals such wife's, husband's or child's insurance benefit or benefits under section 202 for any month—
(1) in which the individual, on the basis of whose wages and self-employment income such benefit was payable^ is under the age of seventy-five and in which he rendered services for wages (as determined under section 209 without regard to subsection (a) thereof) of more than $75; or
(2) in which the individual referred to in paragraph (1) is under the age of seventy-five and for which month he is charged, under the provisions 01 subsection (e) of this section, with net earnings from self-employment of more than $75.
OCCURRENCE OF MORE THAN ONE EVENT
(d) If more than one of the events specified in subsections (b) and (c) occurs in any one month which would occasion deductions equal to a benefit for such month, only an amount equal to such benefit shall be deducted. The charging of net earnings from self-employment to any month shall be treated as an event occurring in the month to which such net earnings are charged.
MONTHS TO WHICH NET EARNINGS FROM SELF-EMPLOYMENT ARE
(e) For the purposes of subsections (b) and (c)—
(1) If an individual's net earnings from self-employment for his taxable year are not more than the product of $50 times the number of months in such year, no month in such year shall be charged with more than $75 or net earnings from self-employment.
(2) If an individual's net earnings from self-employment for his taxable year are more than the product of $75 times the number of months in such year, each month of such year shall be charged with $75 of net earnings from self-employment, and the amount of such net earnings in excess of such product shall be further charged to months as follows: The first $75 of such excess shall be charged to the last month of such taxable year, and the balance, if any, of such excess shall be charged at the rate of $75 per month to each preceding month in such year until all of such balance has been applied, except that no part of such excess shall be charged to any month (A) for which such individual was not entitled to a benefit under this title, (B) in which an event described in paragraph (1), (3), (4), or (5) of subsection (b) occurred, (C) in which such individual was age seventy-five or over, or (D) in which such individual did not engage in self-employment.
(3) (A) As used in paragraph (2), the term "last month of such taxable year" means the latest month in such year to which the charging of the excess described in such paragraph is not prohibited by the application of clauses (A), (B), (C), and (D) thereof.
(B) For the purposes of clause (D) of paragraph (2), an individual will be presumed, with respect to any month, to have been engaged in self-employment in such month until it is shown to the satisfaction of the Administrator that such individual rendered no substantial services in such month with respect to any trade or business the net income or loss of which is includible in computing his net earnings from self-employment for any taxable year. The Administrator shall by regulations prescribe the methods and criteria for determining whether or not an individual has rendered substantial services with respect to any trade or business.
PENALTY FOB FAILURE TO REPORT CERTAIN EVENTS
(f) Any individual in receipt of benefits subject to deduction under subsection (b) or (c) (or who is in receipt of such benefits on behalf of another individual), because of the occurrence of an event specified therein (other than an event described in subsection (b) (2) or (c) (2)), shall report such occurrence to the Administrator prior to the receipt and acceptance of an insurance benefit for the second month following the month in which such event occurred. Any such individual having knowledge thereof, who fails to report any such occurrence, shall suffer an additional deduction equal to that imposed under subsection (b) or (c), except that the first additional deduction imposed by this subsection in the case of any individual shall not exceed an amount equal to one month's benefit even though the failure to report is with respect to more than one month.
REPORT TO ADMINISTRATOR OF NET EARNINGS FROM
(g) (1) If an individual is entitled to any monthly insurance benefit under section 202 during any taxable year in which he has net earnings from self-employment in excess of the product of $75 tunes the number of months in such year, such individual (or the individual who is in receipt of such benefit on his behalf) shall make a report to the Administrator of his net earnings from self-employment for such taxable year. Such report shall be made on or before the fifteenth day of the third month following the close of such year, and shall contain such information and be made in such manner as the Administrator may by regulations prescribe. Such report need not be made for any taxable year beginning with or after the month in which such individual attained the age of seventy-five.
(2| If an individual fails to make a report required under paragraph (1), within the time prescribed therein, of his net earnings
from self-employment for any taxable year and any deduction is imposed under subsection (b) (2) by reason of such net earning&y(A) such individual shall suffer one additional deduction in an amount equal to his benefit or benefits for the last month in
such taxable year for which he was entitled to a benefit under section 202; and
(B) if the failure to make such report continues after the close of the fourth calendar month following the close of such taxable year, such individual shall suffer an additional deduction in the same amount for each month during all or any part of which such failure continues after such fourth month;
except that the number of the additional deductions required by this paragraph shall not exceed the number of months in such taxable year for which such individual received and accepted insurance benefits under section 202 and for which deductions are imposed under subsection (b) (2) by reason of such net earnings from self-employment. If more than one additional deduction would be imposed under this paragraph with respect to a failure by an individual to file a report required by paragraph (1) and such failure is the first for which any additional deduction is imposed under this paragraph, only one additional deduction shall be imposed with respect to such first failure.
(3) If the Administrator determines, on the basis of information obtained by or submitted to him, that it may reasonably be expected that an individual entitled to benefits under section 202 for any taxable year will suffer deductions imposed under subsection (b) (2) by reason of his net earnings from self-employment for such year, the Administrator may, before the close of such taxable year, suspend the payment for each month in such year (or for only such months as the Administrator may specify) of the benefits payable on the basis of such individual's wages and self-employment income; and such suspension shall remain in effect with respect to the benefits for any month until the Administrator has determined whether or not any deduction is imposed for such month under subsection (b). The Administrator is authorized, before the close of the taxable year of an individual entitled to benefits during such year, to request of such individual that he make, at such time or times as the Administrator may specify, a declaration of his estimated net earnings from self-employment for the taxable year and that he furnish to the Administrator such other information with respect to such net earnings as the Administrator may specify. A failure by such individual to comply with any such request shall in itself constitute justification for a determination under this paragraph that it may reasonably be expected that the individual will suffer deductions imposed under subsection (b) (2) by reason of his net earnings from self-employment for such year.24 (h) * * *
DEDUCTIONS WITH RESPECT TO CERTAIN LUMP-SUM PAYMENTS
(i) Deductions shall also be made from any old-age insurance benefit to which an individual is entitled, or from any other insurance benefit payable on the basis of such individual's wages and self-employment income, until such deductions total the amount of any lump sum paid to such individual under section 204 of the Social Security Act in force
"Sec. 4 of the 1952 Amendments snbstltnted In fee. 203 (b) through (g) "$7B" for "J50" wherever the latter figure appeared In such sections of the Act, as amended by the I960 Amendments. For effective date of inch lee. 4 of the 1902 Amendment!, see sublet, (e) thereof, p. 189.
prior to the date of enactment of the Social Security Act Amendments of 1939.
DEFINITION OF WAGES
Sec. 209. For the purposes of this title, the term "wages" means remuneration paid prior to 1951 which was wages for the purposes of this title under the law applicable to the payment of such remuneration, and remuneration paid after 1950 for employment, including the cash value of all remuneration paid in any medium other than cash; except that, in the case of remuneration paid after 1950, such term shall not include—
(a) That part of the remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $3,600 with respect to employment has been paid to an individual during any calendar year, is paid to such individual during such calendar year;
(g) (1) Remuneration paid in any medium other than cash to an employee for service not in the course of the employer's trade or business or for domestic service in a private home of the employer;
(2) 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 the quarter for such service is less than $50 or the employee is not regularly employed by the employer in such quarter of payment. For the purposes of this paragraph, an employee shall be deemed to be regularly employed by an employer during a calendar quarter only if (A) on each of some twenty-four days during the quarter the employee performs for the employer for some portion of the day domestic service in a private home of the employer, or (B) the employee was regularly employed (as determined under clause (A)) by the employer in the performance of such service during the preceding calendar quarter. As used in this paragraph, the term "domestic service in a private home of the employer" does not include service described in section 210 (f) (5);
(h) Remuneration paid in any medium other than cash for agricultural labor;
DEFINITION OF EMPLOYMENT
Sec. 210. For the purposes of this title—
(a) The term "employment" means any service performed after 1936 and prior to 1951 which was employment for the purposes of this title under the law applicable to the period in which such service was performed, and any service, of whatever nature, performed after 1950 either (A) by an employee for the person employing him, irrespective of the citizenship or residence of either, (i) within the United States, or (ii) on or in connection with an American vessel or American aircraft under a contract 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 of the United States as an employee for an American employer (as defined in subsection (e)); except that, in the case of service performed after 1950, such term shall not include—
(1) (A) Agricultural labor (as defined in subsection (f) of this section) performed in any calendar quarter by an employee, unless the cash remuneration paid for such labor (other than service described in subparagraph (B) is $50 or more and such labor is performed for an employer by an individual who is regularly employed by such employer to perform such agricultural labor. For the purposes of this subparagraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if—
(i) such individual performs agricultural labor (other than service described in subparagraph (B)) for such employer on a full-time basis on sixty days during such quarter, and
(ii) the quarter was immediately preceded by a qualifying quarter.
For the purposes of the preceding sentence, the term "qualifying quarter" means (I) any quarter during all of which such individual was continuously employed by such employer, or (II) any subsequent quarter which meets the test of clause (i) if, after the last quarter during all of which such individual was continuously employed by such employer, each intervening quarter met the test of clause (i). Notwithstanding the pre ceding provisions of this subparagraph, an individual shall also be deemed to be regularly employed by an employer during a calendar quarter if such individual was regularly employed (upon application of clauses (i) and (ii)) by such employer during the preceding calendar quarter.
(B) Service performed in connection with the production or harvesting of any commodity defined as an agricultural commodity in section 15 (g) of the Agricultural Marketing Act, as amended, or in connection with the ginning of cotton;
(C) Service performed by foreign agricultural workers under contracts entered into in accordance with title V of the Agricultural Act of 1949, as amended.25
(2) Domestic service performed in a local college club, or local chapter of a college fraternity or sorority, by a student who is enrolled and is regularly attending classes at a school, college, or university;
"This exclusion from coverage was added by sec. 505 (a) of the Agricultural Act of 1949, as amended hy the Act of July 12, 1951 (Public Law 78, 82d Cong.). The exclusion applies only to workers from Mexico and It was not effective after 1953 since no workers TM«.v he made available under title V of such Agricultural Act for employment nfter December 31 of that year (but see sec. 509 of that Act, p. 420). This new clause relates to services performed by Mexican workers under contracts for "agricultural employment" "iteml Into under such title V. Sec. 507 of the Agricultural Act of 1949, as amended, defines agricultural employment as Including "services or activities Included within the provisions of see. 3 (f) of the Fair Labor Standards Act of 1938, as amended, or section '426 of the Internal Revenue Code, as amended, horticultural employment, cotton ginJjlni;, compressing and storing, crushing of oil seeds, and the packing, canning, freezing, arying, or other processing of perishable or seasonable agricultural products."
For other provisions of title V of the Agricultural Act of 1949. as amended by the Act of July 12, 1951, see p. 417.