Sec.

31.3306 (c) (13) Statutory provisions; definitions; employment; services of student nurse or hospital intern.

31.3306 (c) (13)-1 Services of student nurse or hospital intern.

31.3306 (c) (14) Statutory provisions; definitions; employment; services of insurance agent or solicitor.

31.3306 (c) (14)-1 Services of insurance agent or solicitor. 31.3306 (c) (15) Statutory provisions; definitions; employment; services in delivery or distribution of newspapers, shopping news, or magazines.

31.3306 (c) (15)-1 Services in delivery or distribution of newspapers, shopping news, or magazines.

31.3306 (c) (16) Statutory provisions; definitions; employment; services in employ of international organization.

31.3306 (c) (16)-1 Services in employ of international organization. 31.3306 (c) (17) Statutory provisions; definitions; employment; fishing services. 31.3306 (c) (17)-1 Fishing services. 31.3306 (d) Statutory provisions; definitions; included and excluded services. 31.3306 (d)-1 Included and excluded services. 31.3306 (e)

Statutory provisions;

defini

Subpart E-Collection of Income Tax at Source on Wages (Chapter 24, Internal Revenue Code of 1954)

Sec.

31.3401 (a) Statutory provisions; defini

tions; wages.

31.3401 (a)-1

Wages.

31.3401 (a)-2 Exclusions from wages. 31.3401 (a) (1) Statutory provisions; definitions; wages; certain remuneration of members of the Armed Forces. 31.3401 (a) (1)-1 Remuneration of members of the Armed Forces of the United States for active service in combat zone or while hospitalized as a result of such service. 31.3401 (a) (2) Statutory provisions; definitions; wages; remuncration paid for agricultural labor.

31.3401 (a) (2)-1 Agricultural labor. 31.3401 (a) (3) Statutory provisions; definitions; wages; remuneration paid for domestic service.

31.3401 (a) (3)-1 Remuneration for domestic service.

31.3401 (a) (4) Statutory provisions; definitions; wages; cash remuneration for service not in the course of employer's trade or business.

31.3401 (a) (4)-1 Cash remuneration for service not in the course of employer's trade or business.

31.3401 (a) (5) Statutory provisions; definitions; wages; remuneration for services for foreign government or international organization.

31.3401 (a) (5)-1 Remu. eration for services for foreign government or international organization.

31.3401 (a) (6) Statutory provisions; definitions; wages; remuneration for services of certain nonresident alien individuals. 31.3401 (a) (6)-1 Remuneration for services of certain nonresident alien individuals. 31.3401 (a) (7) Statutory provisions; defini

tions; wages; remuneration for services performed by nonresident alien individuals who are residents of a contiguous country and who enter and leave at frequent intervals.

31.3401 (a) (7)-1 Remuneration for services performed by nonresident alien individuals who are residents of a contiguous country and who enter and leave the United States at frequent intervals. 31.3401 (a) (8) (A) Statutory provisions; definitions; wages; remuneration paid for services performed by citizens outside the United States. 31.3401 (a) (8) (A)-1 Remuneration for ervices performed outside the United States by citizens of the United States. 31.3401 (a) (8) (B) Statutory provisions; definitions; wages; remuneration for services performed in possession of the United States (other than Puerto Rico) by citizen of the United States. 31.3401 (a) (8) (B)-1 Remuneration for services performed in possession of the United States (other than Puerto Rico) by citizen of the United States.

Sec.

31.3401 (a) (8) (C) Statutory provisions; definitions; wages; remuneration for services performed in Puerto Rico by citizen of the United States. 31.3401 (a) (8) (C) -1 Remuneration for services performed in Puerto Rico by citizen of the United States. 31.3401 (a) (9) Statutory provisions; definitions; wages; remuneration for services performed by a minister of a church or a member of a religious order. 31.3401 (a) (9)-1 Remuneration for services performed by a minister of a church or a member of a religious order. 31.3401 (a) (10) Statutory provisions; defilnitions; wages; remuneration for services in the delivery or distribution of newspapers, shopping news, or magazines.

31.3401 (a) (10)-1 Remuneration for services in delivery or distribution of newspapers, shopping news, or magazines. 31.3401 (a) (11) Statutory provisions; definitions; wages; remuneration other than in cash for services not in the course of employer's trade or business.

31.3401 (a) (11)-1 Remuneration

other

31.3401 (d) Statutory provisions; definitions; employer.

31.3401 (d)-1 Employer.

31.3401 (e) Statutory provisions; definitions; number of withholding exemptions claimed.

31.3401 (e)-1 Number of withholding exemptions claimed.

31.3402 (a) Statutory provisions; income tax collected at source; requirement of withholding.

31.3402 (a)-1 Requirement of withholding. 31.3402 (b) Statutory provisions; income

tax collected at source; percentage method of withholding. 31.3402 (b)-1 Percentage method of withholding.

31.3402 (c) Statutory provisions; income tax collected at source; wage bracket withholding.

31.3402 (c)-1 Wage bracket withholding. 31.3402 (d) Statutory provisions; income tax collected at source; tax paid by recipient.

Sec.

31.3402 (d)-1 Failure to withhold. 31.3402 (e) Statutory provisions; income tax collected at source; included and excluded wages.

31.3402 (e)-1 Included and excluded wages. 31.3402 (f) (1) Statutory provisions; income tax collected at source; withhold

ing exemptions.

31.3402 (f) (1)-1 Withholding exemptions. 81.3402 (f) (2) Statutory provisions; income tax collected at source; withholding exemptions; exemption certificates. 31.3402 (f) (2)-1 Withholding exemption certificates.

31.3402 (f) (3) Statutory provisions; income tax collected at source; withholding exemptions; when exemption certificate takes effect.

31.3402 (f) (3)-1 When withholding exemption certificate takes effect. 31.3402 (f) (4) Statutory provisions; income tax collected at source; withholding exemptions; period during which exemption certificate remains in effect. 31.3402 (f) (4)-1 Period during which withholding exemption certificate remains in effect.

31.3402 (f) (5) Statutory provisions; income tax collected at source; withholding exemptions; form and contents of exemption certificate.

31.3402 (f) (5)-1 Form and contents of withholding exemption certificate. 31.3402 (g) Statutory provisions; income

tax collected at source; overlapping pay periods, and payment by agent or fiduciary.

31.3402 (g)-1 Supplemental wage pay

SUBPART A-INTRODUCTION AUTHORITY: §§ 31.0-1 to 31.0-4 issued under sec. 7805, 68A Stat. 917; 26 U. S. C. 7805. SOURCE: §§ 31.0-1 to 31.0-4 contained in Treasury Decision 6190, 21 F. R. 5261, July 14, 1956.

§ 31.0-1 Introduction-(a) In general. The regulations in this part relate to the employment taxes imposed by subtitle C (chapters 21 to 25, inclusive) of the Internal Revenue Code of 1954, as amended. References in the regulations to the "Internal Revenue Code" or the "Code" are references to the Internal Revenue Code of 1954, as amended, unless otherwise indicated. References to the Federal Insurance Contributions Act, the Railroad Retirement Tax Act, and the Federal Unemployment Tax Act are references to chapters 21, 22, and 23, respectively, of the Code. References to sections of law are references to sections of the Internal Revenue Code unless otherwise indicated.

(b) Division of regulations. The regulations in this part are divided into 7 subparts. Subpart A contains provisions relating to general definitions and use of terms, the division and scope of the regulations in this part, and the extent to which the regulations in this part supersede prior regulations relating to employment taxes. Subpart B relates to the taxes under the Federal Insurance Contributions Act. Subpart C relates to the taxes under the Railroad Retirement Tax Act. Subpart D relates to the tax under the Federal Unemployment Tax Act. Subpart E relates to the collection of income tax at source on wages under chapter 24 of the Code. Subpart F relates to the provisions of chapter 25 of the Code which are applicable in respect of the taxes imposed by chapters 21 to 24, inclusive, of the Code. Subpart G relates to selected provisions of subtitle F of the Code, relating to procedure and administration, which have special application in respect of the taxes imposed by subtitle C of the Code. Inasmuch as

these regulations constitute Part 31 of Title 26 of the Code of Federal Regulations, each section of the regulations is preceded by a section symbol and 31 followed by a decimal point (§ 31.). Sections of law or references thereto are preceded by "Sec." or the word "section".

§ 31.0-2 General definitions and use of terms—(a) In general. As used in the regulations in this part, unless otherwise expressly indicated

(1) The terms defined in the provisions of law contained in the regulations in this part shall have the meanings so assigned to them.

(2) The Internal Revenue Code of 1954 means the act approved August 16, 1954 (68A Stat.), entitled "An act to revise the internal revenue laws of the United States", as amended.

(3) The Internal Revenue Code of 1939 means the act approved February 10, 1939 (53 Stat., Part 1), as amended.

(4 The Social Security Act means the act approved August 14, 1935 (49 Stat. 620), as amended.

(5) The Social Security Amendments of 1954 means the act approved September 1, 1954 (68 Stat. 1052).

(6) The Social Security Administration means the Social Security Administration of the Department of Health, Education, and Welfare. (See the Statement of Organization and Delegations of Authority of the Department of Health, Education, and Welfare (20 F. R. 1996).)

(7) District director means district director of internal revenue.

(8) Person includes an individual, a corporation, a partnership, a trust or estate, a joint-stock company, an association, or a syndicate, group, pool, joint venture or other unincorporated organization or group, through or by means of which any business, financial operation, or venture is carried on. It includes a guardian, committee, trustee, executor, administrator, trustee in bankruptcy, receiver, assignee for the benefit of creditors, conservator, or any person acting in a fiduciary capacity.

(9) Calendar quarter means a period of 3 calendar months ending on March 31, June 30, September 30, or December 31.

(10) Account number means the identifying number of an employee assigned, as the case may be, under the Internal

Revenue Code of 1954, under subchapter A of chapter 9 of the Internal Revenue Code of 1939, or under title VIII of the Social Security Act.

(11) Identification number means the identifying number of an employer assigned, as the case may be, under the Internal Revenue Code of 1954, under subchapter A or D of chapter 9 of the Internal Revenue Code of 1939, or under title VIII of the Social Security Act.

(12) Regulations 90 means the regulations approved February 17, 1936 (26 CFR (1939) Part 400), as amended, relating to the excise tax on employers under title IX of the Social Security Act, and such regulations as made applicable to subchapter C of chapter 9 and other provisions of the Internal Revenue Code of 1939 by Treasury Decision 4885, approved February 11, 1939 (26 CFR (1939) 1943 Cum. Supp., p. 5876), together with any amendments to such regulations as so made applicable to the Internal Revenue Code of 1939.

(13) Regulations 91 means the regulations approved November 9, 1936 (26 CFR (1939) Part 401), as amended, relating to the employees' tax and the employers' tax under title VIII of the Social Security Act, and such regulations as made applicable to subchapter A of chapter 9 and other provisions of the Internal Revenue Code of 1939 by Treasury Decision 4885, approved February 11, 1939 (26 CFR (1939) 1943 Cum. Supp., p. 5876), together with any amendments to such regulations as so made applicable to the Internal Revenue Code of 1939.

(14) Regulations 106 means the regulations approved February 24, 1940 (26 CFR (1939) Part 402), as amended, relating to the employees' tax and the employers' tax under the Federal Insurance Contributions Act (subchapter A of chapter 9 of the Internal Revenue Code of 1939) with respect to the period after 1939 and before 1951.

(15) Regulations 107 means the regulations approved September 12, 1940 (26 CFR (1939) Part 403), as amended, relating to the excise tax on employers under the Federal Unemployment Tax Act (subchapter C of chapter 9 of the Internal Revenue Code of 1939) with respect to the period after 1939 and before 1955.

(16) Regulations 114 means the regulations approved December 30, 1948 (26

CFR (1939) 1955 Supp., Part 411), as amended, relating to the employers' tax, employees' tax, and employee representatives' tax under the Railroad Retirement Tax Act (subchapter B of chapter 9 of the Internal Revenue Code of 1939) with respect to compensation paid after 1948 for services rendered after 1946 and before 1955.

(17) Regulations 120 means the regulations approved December 22, 1953 (26 CFR (1939) 1955 Supp., Part 406), as amended, relating to collection of income tax at source on wages under subchapter D of chapter 9 of the Internal Revenue Code of 1939 with respect to the period after 1953 and before 1955.

(18) Regulations 128 means the regulations approved December 6, 1951 (26 CFR (1939) 1955 Supp., Part 408), as amended, relating to the employee tax and the employer tax under the Federal Insurance Contributions Act (subchapter A of chapter 9 of the Internal Revenue Code of 1939) with respect to the period after 1950 and before 1955.

(19) The cross references in the regulations in this part to other portions of the regulations, when the word "see" is used, are made only for convenience and shall be given no legal effect.

(b) Subpart B. As used in Subpart B of this part, unless otherwise expressly indicated

(1) Act means the Federal Insurance Contributions Act.

(2) Taxes means the employee tax and the employer tax, as respectively defined in this paragraph.

(3) Employee tax means the tax imposed by section 3101 of the Code.

(4) Employer tax means the tax imposed by section 3111 of the Code.

(c) Subpart C. As used in Subpart C of this part, unless otherwise expressly indicated

(1) Act means the Railroad Retirement Tax Act.

(2) Railway Labor Act means the act approved May 20, 1926 (44 Stat. 577), as amended.

(3) Railroad Retirement Act of 1937 means the act approved June 24, 1937 (50 Stat. 307), as amended.

(4) Railroad Retirement Board means the board established pursuant to section 10 of the Kailroad Retirement Act of 1937.

(5) Tax means the employee tax, the employee representative tax, or the employer tax, as respectively defined in this paragraph.

(6) Employee tax means the tax imposed by section 3201 of the Code. (7) Employee representative tax means the tax imposed by section 3211 of the Code.

(8) Employer tax means the tax imposed by section 3221 of the Code.

(d) Subpart D. As used in Subpart D of this part, unless otherwise expressly indicated:

(1) Act means the Federal Unemployment Tax Act.

(2) Railroad Unemployment Insurance Act means the act approved June 25, 1938 (52 Stat. 1094), as amended.

(3) Tax means the tax imposed by section 3301 of the Code.

(e) Subpart E. As used in Subpart E of this part, unless otherwise expressly indicated, tax means the tax required to be deducted and withheld from wages under section 3402 of the Code.

§ 31.0-3 Scope of regulations—(a) Subpart B. The regulations in Subpart B of this part relate to the imposition of the employee tax and the employer tax under the Federal Insurance Contributions Act with respect to wages paid and received after 1954 for employment performed after 1936. In addition to employment in the case of remuneration therefor paid and received after 1954, the regulations in Subpart B of this part relate also to employment performed after 1954 in the case of remuneration therefor paid and received before 1955. The regulations in Subpart B of this part include provisions relating to the definition of terms applicable in the determination of the taxes under the Federal Insurance Contributions Act, such as "employee", "wages", and "employment". The provisions of Subpart B of this part relating to the definition of "employment" are applicable also, to the extent provided in § 31.3121 (b)-2, to services performed before 1955 the remuneration for which is paid after 1954. (For prior regulations on similar subject matter, see Regulations 128; 26 CFR (1939) 1955 Supp., Part 408.)

(b) Subpart C. The regulations in Subpart C of this part relate to the

1 In process of preparation.

imposition of the employee tax, the employee representative tax, and the employer tax under the Railroad Retirement Tax Act with respect to compensation paid after 1954, for services rendered after such date. The regulations in Subpart C of this part include provisions relating to the definition of terms applicable in the determination of the taxes under the Railroad Retirement Tax Act, such as "employee", "employee representative", "employer", and "compensation". (For prior regulations on similar subject matter, see Regulations 114; 26 CFR (1939) 1955 Supp., Part 411.)

(c) Subpart D. The regulations in Subpart D of this part relate to the imposition on employers of the excise tax under the Federal Unemployment Tax Act for the calendar year 1955 and subsequent calendar years with respect to wages paid after 1954 for employment performed after 1938. In addition to employment in the case of remuneration therefor paid after 1954, the regulations in Subpart D of this part relate also to employment performed after 1954 in the case of remuneration therefor paid before 1955. The regulations in Subpart D of this part include provisions relating to the definition of terms applicable in the determination of the tax under the Federal Unemployment Tax Act, such as "employee", "employer", "employment", and "wages". The regulations in Subpart D of this part also include provisions relating to the credits against the Federal tax for State contributions. (For prior regulations on similar subject matter, see Regulations 107; 26 CFR (1939) Part 403.)

(d) Subpart E. The regulations in Subpart E of this part relate to the withholding under chapter 24 of the Code of income tax at source on wages paid after 1954, regardless of when such wages were earned. The regulations in Subpart E of this part include provisions relating to the definition of terms applicable in the determination of the tax under chapter 24 of the Code, such as "employee", "employer", and "wages". (For prior regulations on similar subject matter, see Regulations 120; 26 CFR (1939) 1955 Supp., Part 406.)

(e) Subpart F. The regulations in Subpart F of this part deal with the general provisions contained in chapter 25 of the Code, which relate to the employment taxes imposed by chapters 21 to 24,