410. DEFINITION OF EMPLOYMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300010024-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 31
• Document Creation Date: December 22, 2016
• Document Release Date: March 7, 2011
• Sequence Number: 24
• Content Type: REGULATION

Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 409
ployer's distribution of the monies properly rep-
resented employment and retirement benefits.
Ford v Ribicoff (1961, DC Tenn) 199 F Supp
822.
paid pursuant to a benefit plan were wages.
MacPherson v Ewing (1952,. DC Cal) 107.F
Supp 666.
Sick pay accumulated from sick leave credits
amounted to wages within the scope of this
section. Graves v Gardner (1968, DC NY) 280 F
Supp 666.
6. Sick pay exemption
Payments made by employer to employee dur-
ing eight month period of illness which were not
? 410. Definition of employment
For the purposes of this title-
(a) Employment. 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 (i) of an American employer (as defined in
subsection (e)), or (ii) of a foreign subsidiary (as defined in section 3121 (/)
of the Internal Revenue Code of 1954 [26 USCS ? 3121 (1)]) of a domestic
corporation (as determined in accordance with section 7701 of the Internal
Revenue Code of 1954 [26 USCS ? 7701]) during any period for which
there is in effect an agreement, entered into pursuant to section 3121 (/) of
the Internal Revenue Code of 1954 [26 USCS ? 3121 (1)], with respect to
such subsidiary; except that, in the case of service performed after 1950,
such term shall not include-
(1) Service performed by foreign agricultural workers (A) under con-
tracts entered into in accordance with title V of the Agricultural Act of
1949, as amended, or (B) lawfully admitted to the United States from
the Bahamas, Jamaica, and the other British West Indies, or from any
other foreign country or, possession thereof, on a temporary basis to
perform agricultural labor;
(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; {
(3) (A) Service performed by an individual in the employ of his spouse,
and service performed by a child under the age of twenty-one in the
employ of his father or mother;
(B) Service not in the course of the employer's trade or. business, or
domestic service in a private home of the employer, performed by an
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
INSURANCE BENEFITS
42 USCS ? 410
individual in the employ of his son or daughter; except that the
provisions of this . subparagraph shall not be applicable to such
domestic service if
(i) the employer is a surviving spouse or a divorced individual and
has not remarried, or has a spouse living in the home who has a
mental or physical condition which results in such spouse's being
incapable of caring for a son, daughter, stepson, or stepdaughter
(referred to in clause (ii)) for at least 4 continuous weeks in the
calendar quarter in which the service is rendered, and
(ii) a son, daughter, stepson, or stepdaughter of such employer is
living in the home, and
(iii) the son, daughter, stepson, or stepdaughter (referred to in
clause (ii)) has not attained age 18 or has a mental or physical
condition which requires the personal care and supervision of an
adult for at least 4 continuous weeks in the calendar quarter in
which the service is rendered;
(4) Service performed by an individual on or in connection with a vessel
not an American vessel, or on or in connection with an aircraft not an
American aircraft, if (A) the individual is employed on and in connec-
tion with such vessel or aircraft when outside the United States and (B)
(i) such individual is not a citizen of the United States or (ii) the
employer is not an American employer;
(5) Service performed in the employ of any instrumentality of the United
States, if such instrumentality is exempt from the tax imposed by section
1410 of the Internal Revenue Code [of 1939] by virtue of any provision
of law which specifically refers to such section in granting, such exemp-
tion;
(6) (A) Service performed in the employ of the United States or in the
employ of any instrumentality of the United States, if such service is
covered by a retirement system established by a law of the United
States;
(B) Service performed by an individual in the employ of an instru-
mentality of the United States if such an instrumentality was exempt
from the tax imposed by section 1410 of the Internal Revenue Code
[of 1939] on December 31, 1950, and if such service is covered by a
retirement system established by such instrumentality; except that the
provisions of this subparagraph shall not be applicable to-
(i) service performed in the employ of a corporation which is
wholly owned by the United States;
(ii) 'service performed in the employ of a Federal land bank, a
Federal intermediate credit bank, a bank for cooperatives, a Fed-
eral land bank association, a production credit association, a
Federal Reserve Bank, a Federal Home Loan Bank, or a Federal
Credit Union;
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
ML
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410 SOCIAL SECURITY I'
(iii) service performed in the employ of a State, county, or coin
nity committee under the Production and Marketing Adminit
tion;
(iv) service performed by a civilian employee, not compens
from funds appropriated by the Congress, in the Army and
Force Exchange Service, Army and Air Force Motion l'ir.
Service, Navy, Exchanges, Marine Corps Exchanges, or
activities, conducted by an instrumentality of the United S
subject to the jurisdiction, of the Secretary of Defense, at ins!
tions of the Department of Defense for the comfort, plea
contentment, and mental and physical improvement of persona
such Department; or
(v) service performed by a civilian employee, not compensated
funds appropriated by the Congress, in the Coast Guard Exch
or other activities, conducted by an instrumentality of the U
States subject to the jurisdiction of the Secretary of the Treasuv
installations of the Coast Guard for the comfort, pleasure, col
ment, and mental and physical improvement of personnel c
Coast Guard;
(C) Service performed in the employ of the United States or I
employ of any instrumentality of the United States, if such ser,
performed-
(i) as the President or Vice President of the. United States o;
Member, Delegate, or Resident Commissioner of or to the
gress;
(ii) in the legislative branch;
(iii) in a penal institution of the United States by an inmate tl;
(iv) by any individual as an employee included under s
5351(2) of title 5, United States Code (relating to certain ir
student nurses, and other student employees of hospital's (
Federal Government) [5 USCS ? 5251(2)], other than as a m
or dental intern or a medical or dental resident in training;
(v) by any individual as an employee serving on a temporary
in case of fire, storm, earthquake, flood, or other similar
gency; or
(vi) by any individual to whom subchapter III of chapter 83
5, United States Code [5 USCS ?? ], does not
because such individual. is subject to another' retirement
(other than the retirement system of the Tennessee Valley A
ity); .
(7) Service performed in the employ of a State, or any pr.
subdivision thereof, or any instrumentality of any one or more
foregoing which is wholly owned thereby, except that this pare
shall not apply in the case of-
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
INSURANCE BENEFITS 42 USCS ? 410
(A) service included under an agreement under section 218 [42 USCS
? 418]
,
constitutes covered :transpor- is
(k)
ti
ubs
d
hi
h
,
on
er s
ec
, un
c
(B) service w
tation service,
(C) service in the employ of the Government of Guam or the
Samoa or any political subdivision thereof,
i
f A
can
mer
Government o
or of any instrumentality of any one or more of the foregoing which
is wholly 'owned thereby, performed by an officer or employee thereof
(including a member of the legislature of any such Government or
political subdivision), and, for purposes of this title-
(i)i any person whose service as such an officer or employee is not
covered by a retirement system established by a law of the United
States shall not, with respect to such service, be regarded as an
officer or employee of the United States or any agency or instru-
mentality thereof, and
(ii) the remuneration for service described in clause (i) (including
fees paid to a public official) shall be deemed to have been paid by
the Government of Guam or the Government of American Samoa
or by a political subdivision thereof or an instrumentality of any
one or more of the foregoing which is wholly owned thereby,
whichever is appropriate,
(D) service performed in the employ of the District of Columbia or
any instrumentality which is wholly owned thereby, if such service is
not covered by a retirement system established by, a law of the United
States; except that the provisions of this subparagraph shall not be
applicable to service performed-
(i) in a hospital or penal institution by a patient or inmate thereof;
(ii) by any individual as an employee included under section
5351(2) of title 5, United States Code (relating to certain interns,
student nurses, and other student employees of hospitals of the
District of Columbia Government, [5 USCS ? 5351(2)], other than
as a medical or dental intern or as a medical or dental resident in
training;
(iii) by any individual as an .employee serving on a temporary basis
in case of fire, storm, snow, earthquake, flood, or other similar
emergency; or
(iv) by a member of a board, committee, or council of the District
of Columbia, paid on a per diem, meeting, or other fee basis, or
(E) service performed in the employ of the Government of Guam (or
any instrumentality which is wholly owned by such Government) by
an employee properly classified as a temporary or intermittent em-
ployee, if such service is not covered by a retirement system estab-
lished by a law of Guam; except that (i) the provisions of this
subparagraph shall not be applicable to services performed by an
elected official or a member of the legislature or in a hospital or penal
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 organization exempt from income tax under section 101 of the
Internal Revenue Code [of 1939], if the remuneration for such service
is less than $50;
(B) Service performed in the employ of-
(i) a,school, college, or university, or
(ii) an organization described in section 509(a)(3) of the Internal
Revenue Code of 1954 [26 USCS ? 509(a)(3)] if the organization is
organized, and at all times thereafter is operated, exclusively for
the benefit of, to perform the functions of, or to carry out the
purposes of a school, college, or university and is operated, super-
308
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
C ~-~
42 USCS ? 410 SOCIAL SECURITY ACT
institution by a patient or inmate thereof, and (ii) for purposes of this
subparagraph, clauses (i) and (ii) of subparagraph (C) shall apply;
(8) (A) Service performed by a duly ordained, commissioned, or licensed
minister of a church in the exercise of his ministry or by a member of
a religious order in the exercise of duties required by such order,
except that this subparagraph shall not apply to service performed by
a member of such an order in the : exercise of such duties, if an
election of coverage under section 3121(r) of the Internal Revenue
Code of 1954 [26 USCS ? 3121(r)] is, in effect with respect to such
order, or with respect to the autonomous subdivision thereof to which
such member belongs;
(B) Service performed in the employ of a religious, charitable,
educational, or other organization described in section 501(c)(3) of the
Internal Revenue. Code of 1954 [26 USCS ? 501(c)(3)], which is
exempt from income tax under section 501(a) of such Code [26 USCS
? 501(a)], but this subparagraph shall not apply to service performed
during the period for which a certificate, filed pursuant to section
3121(k) of the Internal Revenue Code of 1954 [26 USCS ? 3121(k)], is
in effect if such service is performed by an employee-
(s) whose signature appears on the list filed by such organization
under such section 3121(k) [26 USCS ? 3121(k)],
(ii) -who became an employee of such organization after the,
calendar quarter in which the certificate (other than .a certificate
referred to in clause (iii)) was filed, or
(iii) who, after the calendar quarter in which the certificate was
filed with respect to a group described in paragraph (1)(E) of such
section 3121(k) [26 USCS ? 3121(k)], became a member of such
group,
except that this subparagraph shall apply with respect. to service
performed by an employee as a member of a group described in such
paragraph (1)(E) with respect to which no certificate is in effect;
(9) Service performed by an individual as an employee or employee
representative as defined in section 1532 of the Internal Revenue Code
[of 1939]; .
(10) (A) Service performed in any calendar quarter in the employ of any
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
2TSURANCE BENEFITS 42 USCS ? 410
vised, or. controlled by or in connection with such school, college,
or university; :.unless it is a school, college, or university of a State
or a political.. subdivision thereof and the services in its employ.
performed by a student referred to in section 218(c)(5) [42 USCS
? 418(c)(5)] are covered under the agreement between the Secretary
of Health, Education, and Welfare and such State entered into
pursuant to section 218 [42 USCS ? 418];
if such service is performed by a student who is enrolled and
regularly attending classes at such school, college, or university;
(11) Service performed in the employ of a foreign government (including
service as a consular or other officer or employee or a nondiplomatic
representative);
(12) Service performed in the employ of an instrumentality wholly
owned by a foreign government-
(A) If the service is of a character similar to that performed in foreign
countries by employees of the United States Government or of an
instrumentality thereof; and
(B) If the Secretary of State shall certify to the Secretary of the
Treasury that the foreign government, with respect to whose instru-
mentality and employees thereof exemption is claimed, grants an
equivalent exemption with respect to similar service performed in the
foreign country by employees of the United States Government and of
instrumentalities thereof;
(13) Service performed as a student nurse in the employ of a hospital or
a nurses' training school by an individual who is enrolled and is
regularly attending classes in a nurses' training school chartered or
approved pursuant to State law;
(14) (A) Service performed by an individual under the age of eighteen in
the delivery or distribution of newspapers or shopping news, not
including delivery or distribution to any point for subsequent delivery
or distribution;
(B) Service performed by an individual in, and at the time of, the sale
of newspapers or magazines to ultimate consumers, under an arrange-
ment 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, whether or not he is guaranteed a
minimum amount of compensation for such service, or is entitled to
be credited with the unsold newspapers or magazines turned back;
(15) Service performed in the employ of an international organization
entitled to enjoy privileges, exemptions, and immunities as an interna-
tional organization under the International Organizations Immunities
Act (59 Stat. 669) [22 USCS ?? 288-288F-1; 42 USCS ?? 401 note, 409];
(16) Service performed by an individual under an arrangement with the
owner or tenant of land pursuant to which-
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 42 USCS ? 410 SOCIAL SECURITY ACT
(A) such individual undertakes to produce agricultural or horticul-
tural commodities (including livestock, bees, poultry, and fur-bearing
animals and wildlife) on such land,
(B) the agricultural or horticultural commodities produced by such
individual, or the proceeds therefrom, are to be divided between such
individual and such owner or tenant, and -
(C) the amount of such individual's share depends on the amount of
the agricultural or horticultural commodities produced;
(17) Service in the employ of any organization which is performed (A)
in any quarter during any part of which such organization is registered,
or there is in effect a final order of the Subversive Activities Control
Board requiring such organization to register, under the Internal Secu-
rity Act of 1950, as amended [18 USCS ?? 792 note, 793, 794 note,
1507; 22 USCS ? 618; 50 USCS ??. 781-798, 831-835], as a Communist-
action organization, a Communist-front organization, or a Communist-
infiltrated organization, and (B) after June 30, 1956;
(18) Service performed in Guam by a resident of the Republic of the
Philippines while in Guam on a temporary basis as a nonimmigrant
alien admitted to Guam pursuant to section 101(a)(15)(H)(ii) of the
Immigration and Nationality Act (8 U. S. C. 1101(a)(15)(H)(ii)) [8
USCS ? 1101(a)(15)(H)(ii)]; or
(19) Service which is performed by a nonresident alien individual for the
period he is temporarily present in the United States as a nonimmigrant
under subparagraph (F) or (J) of section 101(a)(15) of the Immigration
an.' Nationality. Act, as amended ' [8 USCS ? 1101(a)(15)(F) or (J)], and
which is performed to carry out the purpose specified in subparagraph
(F) or (J) [8 USCS ? I101(a)(15)(F) or (J)], as the case may be.
(b) Included and excluded service. If the services performed during one-
half or more of any pay period by an employee for the person employing
him constitute employment, all the services of such. employee for such
period shall be..deemed to be employment; but if the services performed
during more than one-half of any such pay period by an employee for the
person employing him do not constitute employment, then none of the
services of such employee for such period shall be deemed to be employ-
ment. As used in this subsection, the term "pay period" means a period (of
not more than thirty-one consecutive days) for which a payment of
remuneration is ordinarily made to the employee by the person employing
him..: This subsection shall not be. applicable with respect to services
performed in a pay period by an employee for the person employing him,
where any of such service is excepted:by paragraph (9) of subsection (a).
(c) American vessel. The term "American vessel" means any vessel.
documented or numbered under the laws of the United States; and includes
any vessel which is neither documented or numbered under the laws of the
United States nor documented under the laws of any foreign country, if its
crew is employed solely by one or more citizens or resided s of the United
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 42 USCS ? 410
INSURANCE BENEFITS
States: or corporations organized under the laws of the United States or of
any State.
(d) American aircraft. The term "American aircraft" means an aircraft
registered under .the laws of the United States. .
(e) American employer. The term "American employer" means an " em-
ployer which is '(1) the United States or any instrumentality thereof,;:(2) a
State or any political subdivision thereof, or any instrumentality of any one
or more of the foregoing, (3) an individual who is a resident of the United
States, (4) a partnership, if two-thirds or more of the partners are residents
of the United States, (5) a trust, if all of the trustees are residents of the
United States, or (6) a corporation organized under the laws of the United
States or of any. State.
(f) Agricultural labor. The term "agricultural labor" includes all service
performed-
(1) in connection with
On a farm, in the employ of any person,
cultivating the soil, or in connection with raising or harvesting any
agricultural or horticultural commodity, including the raising, shearing,
feeding, caring for, training, and management of livestock, bees, poultry,
and fur-bearing. animals and wildlife.
(2) In the employ of the owner or ,tenant or other operator of a farm, in
connection with the operation, management, conservation, improvement,
I or maintenance of such farm and its tools and equipment, or in
salvaging timber or clearing land of brush and other debris left by a
hurricane,: if the major part of such service is performed. on a farm.
(3) In connection with the production or harvesting of of any the Agricultural
oo ity
defined as an agricultural commodity in section 15(iwith
Marketing Act, as amended [12 USCS ? 1141j(g)], or of the the ginning of cotton, or in connection with the operation or mainte-
nance of ditches, canals, reservoirs, or waterways, not owned or oper-
ated for profit, used exclusively for supplying and storing water for
farming purposes. (4) (A) In the employ of the operator of a farm in handling, planting,
drying, packing, packaging, processing, freezing, grading, storing, or
delivering to storage or to market or to a carrier for transportation to
market, in.its unmanufactured state, any agricultural or horticultural'
commodity; but only if such operator produced more than one-half of
the commodity with respect to which such service is performed.
(B) In the employ of a group of operators of farms (other than a
cooperative organization) in the performance of service described in
subparagraph (A), but only if such operators produced all of the
commodity with respect to which such service is performed. For the
purposes of this subparagraph, any unincorporated group of operators
shall be deemed a cooperative organization if the number of operators
comprising such group is more than twenty at any time during the
calendar quarter in which such service is performed.
311
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 42 USCS ? 410 SOCIAL SECURITY ACT
(5) On a farm operated for profit if such service is not in the course of
the employer's trade or business or is domestic service in a private home
of the employer.
The provisions of subparagraphs (A) and (B) of paragraph (4) shall not be
deemed to be applicable with respect to service performed in connection
with commercial canning or commercial freezing or in connection with any
agricultural or horticultural commodity after its delivery to a terminal
market for distribution for consumption.
(g) Farm. The term "farm" includes stock, dairy, poultry, fruit, fur-bearing
animal, and truck farms, plantations, ranches, nurseries, ranges, green-
houses or other' similar structures used primarily for the raising of
agricultural or horticultural commodities, and orchards.
(h) State. The term "State" includes the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Islands, Guam, and American
Samoa.
(i) United States. The term "United States" when used in a geographical
sense means the States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, and American Samoa.
(j) Employee. The term "employee" means-
(1) any officer of a corporation; or
(2) any individual who, under the usual common law rules applicable in
determining the employer-employee, relationship, has the. status of an
employee; or
(3) 'any individual (other than an individual who is an employee under
paragraph (1) or (2) of this subsection) who performs services for
remuneration for 'any person-
(A) as an agent-driver or commission-driver engaged in distributing
meat products, vegetable products, fruit products, bakery products,
beverages (other than milk), or laundry or dry-cleaning services, for
his principal;
(B) as a full-time life insurance salesman;
(C) as a home worker performing work, according to specifications
furnished by the person for whom the services are performed, on
materials or goods furnished by such person which are required to be
returned to such person or a person designated by him;. or
(D) as a traveling or city salesman, 'other than as an agent-driver :or
commission-driver, engaged upon , a., full-time basis in: :the solicitation
on::behalf of, and the transmissioii;:to, his principal (except for; side-
line sales activities on behalf of some other person).::.of orders ..from
wholesalers, retailers, contractors,:-or operators of hotels; restaurants
or other similar establishments for merchandise for resale or supplies
for use in their business operations;
if the contract of service contemplates that substantially all of such
services are to be performed personally by such individual;. except that
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved
42 USCS ? 410
NSURANCE BENjEFITS ,
an individual shall not be included in the term "employee" under the
provisions of this paragraph if such individual has s bmancea invuch
ment in est-
facilities used in connection with the
perform of ion), or if the services are
services (other than in facilities for tnot part of a continuing relationship
in the nature of a,single iori
with the person: for whom the services are performed.
(k) Covered transportation service.
(1) Except as provided in paragraph (2), all service performed in the
covered ttranspor-
employ of a State ns political
systtems shall constitute connection
tion of a public tra p system was acquired from
tation service if any part of the transportation
private ownership after 1936 and prior to 1951.
(2) Service performed in the employ of a State or political subdivision in
or its public tf transportation system shall
connection with the operation of
not constitute covered transp o rivate
(A) any part of the transportation system a and su acquire antially
ownership after 1936 and prior to
systeis, on
in connection with the operation of the transportation system
retirement
December 31, 1950, covered under a general
of the Sta
providing . benefits which, by reason of a provision
can not retirement
constitution ealing c thereof, with
be diminished
political or impaired;
or poical subdivisions
or operated by the State. or
(B) no part of the transportation system op riate
political subdi isio36 and prior 31, 1950, was acquired from p
acquisition
ownership after
except that if such State owri political lorsubdivision
part of kts transportation i
after 1950 from private system, then, in the case of any employee who-
(C) became an employee
otime cof State sacquis tioln rafter 9a 0 tof such
connection with and at the
part, and
(D) prior to such acquisition rendered seerrtvi of in employment in
connection with the operation of
cal subdivision,
political
system acquired by the State or
the service of such employee in connection with the operation of the
service,
ing system shall
nfollowing
transportation
of t the third calendar quarter
day
the fiy acquisition of such part took place,
em-
the calendar quarter in which the aunless on such first day such service of such employee is covered by a to such general retirement system which does only toremployees described
ployee, contain special provisions applicable
in subparagraph (C). of a State or political subdivi-
(3) All service performed in the employ
sion thereof in connection with its operation of a public transportation
313
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
described in such section 102.
(4)(A) Paragraph (1) of this subsection shall not apply: in. case of any
service, performed by an individual as a member, of a uniformed
service, which is creditable under.. section 4 of the Railroad Retire-
e ment Act of 1937 [45 USCS 228c-1]. The Railroad Retirement
Board shall notify the Secretary of Health, Education, and Welfare, as
provided in section 4(p)(2) of that Act [45 USCS ? 228c-1(p)(2)], with
respect to all such service which is so creditable.
(B) In any case where benefits under this title are already payable on
the basis of such individual's wages and self-employment income at
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410 SOCIAL SECURITY ACT
system shall constitute covered transportation service if the transporta-
tion system was not operated by the State or political subdivision prior
to 1951 and, at the time of its first acquisition (after 1950) from private
ownership of any part of its transportation system, the State or political
subdivision did not have a general retirement system covering substan-
tially all service performed in connection with the operation of the
transportation system.
(4) For the purposes of this subsection-
(A) The term "general retirement system" means any pension, annu-
ity, retirement, or similar fund or system established by a State or by
a political subdivision thereof for employees of the State, political
subdivision, or both; but such term shall not include such a fund or
system which covers only service performed in positions connected
with the operation of its public transportation system.
(B) A transportation system or a part thereof shall be considered to
have been acquired by a State or political subdivision from private
ownership if prior to the acquisition service performed by employees
in connection with the operation of the system or part thereof
acquired constituted employment under this title, and some of such
employees became employees of the State or political subdivision in
connection with and at the time of such acquisition.
(C) The term "political subdivision" includes an instrumentality of (1)
a State, (ii) one or more political subdivisions of;a. State, or (iii) a
State and one or more of its political subdivisions.
(/) Service in the uniformed services.
(1) ,Except as, provided in paragraph (4), the term "employment" shall,
notwithstanding the provisions of subsection (a) of this section, include
service performed after December 1956 by an individual as a member of
a uniformed service on active duty; but such term shall not include any
such service which is performed while on leave without pay.
(2) The term "active duty" means "active duty" as described in section
102 of the Servicemen's and Veterans' Survivor Benefits Act, except that
it shall also include "active duty for training" as described in such
section.
(3) The term, "inactive duty training" means "inactive duty. training" as
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410
;URANCE BENEFITS
spect to such individual) is received
h
i
re
t
the time such notification (w
by the Secretary; the Secretary shall certify no further benefits for
the basis of such individual's wages and
l
i
e on
t
payment under, this t
self-employment income, or shall' 'recompute the amount of an.
further benefits:::payable on the basis.: of such wages and self-employ
ment income, as. may be required as.'a consequence of
of this paragraph. 'No payment of a benefit to any
subparagraph (A),
person on the ::basis of such individual's wages and self-employment
income, certified by the Secretary prior to the end of the month in the Railroad Retirement::
which she receives such hall be deemed byo reason of this from
Board, to have been
an erroneous
payment or a payment to which such person was not entitled. The
Secretary shall, as soon as possible after the receipt of such notifica-
tion from the Railroad Retirement Board, advise such Board whether
or not any such benefit will be reduced or terminated by reason of
subparagraph (A), and if any such benefit will be so reduced or
terminated, specify the first month with respect to which such
reduction or termination will be effective.
Member of a uniformed service. The term "member of a uniformed
rvice" means any person appointed, enlisted, or inducted in a' component
the Army, Navy, Air Force, Marine Corps, or Coast Guard (including a
serve component of a uniformed service as defined in section 102(3) of
e Servicemen's and Veterans' Survivor Benefits Act), or in one of those
rvices without specification of component, or as a commissioned officer of
.e Coast and Geodetic Survey or the Regular or Reserve Corps of the
iblic Health Service, and any person serving in the Army or Air Force
ider call or conscription. The term includes-
(I) a retired member of any of those services;
(2) a member of the Fleet Reserve or Fleet Marine Corps Reserve;
(3) a cadet at the United States Military Academy, a midshipman at the
United States Naval Academy, and a cadet at the United States Coast
Guard Academy or United States Air.. Force Academy;
(4) a member of the Reserve Officers' Training Corps, the Naval Reserve
Officers' Training Corps, or the Air Force Reserve Officers' Training
Corps, when ordered to annual training duty for fourteen days or more,
and while performing authorized travel to and from that duty; and final
(5) any person while en route to or from, or at, a place
acceptance or for entry upon active duty in the military or naval
service-
(A) who has been provisionally accepted for such duty; or
45514 Training and Service Act [50
(B) who, under the Universal
a], has been selected
Appx. USCS ?? 451, 453, 454,
for active military or naval service;
and has been ordered or directed to proceed to such place.
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410 SOCIAL SECURITY ACT
The term does not include a temporary member of the Coast Guard
Reserve.
(n) 'Crew leader. The term "crew leader" means an individual who
furnishes individuals to perform agricultural labor for another person, if
such individual pays (either on his own behalf or on behalf of such person)
the individuals so furnished by him for the agricultural labor performed by
them and if such individual has not entered into a written agreement with
such person whereby such individual has been designated as an employee
of such person; and such individuals furnished by the crew leader to
perform agricultural labor for another person shall be deemed to be the
employees of such crew leader. A crew leader shall, with respect to services
performed in furnishing individuals to perform agricultural labor for
another person and service performed as a member of the crew, be deemed
not to be-an employee of such other person.
(o) Peace Corps Volunteer Service. The term "employment" shall, not-
withstanding the provisions of subsection (a), include service performed by
an individual as a volunteer or volunteer leader within the meaning of the
Peace Corps Act [20 USCS ? 425; 22 USCS ?? 2501-2523; 26 USCS
?? 912, 3121, 3122, 3401, 6051; 42 USCS ?? 405, 409, 410].
(Aug. 14, 1935, c. 531, Title II, ? 210, as added Aug. 28, 1950, c. 809,
Title I, ? 104(a), 64 Stat. 494; Oct. 31, 1949, c. 792, Title V,
? 506(a)[505(a)], as added July 12, 1951, c. 223, 65 Stat. 120; Sept. 1, 1954,
c. 1206, Title I, ? 101(a)(4), (5), (b)-(c)(2), (e), (f), (m), 68 Stat. 1052,
1053, 1054, 1061; Aug. 1, 1956, c. 836, Title I, ?? 104(a)-(c)(1), 105(b),
121(c), 70 Stat. 824, 828, 839; Aug. 1, 1956, c. 837, Title IV, ? 402(a), 70
Stat. 870; Aug. 28, 1958, P. L. 85-840, Title III, ?? 311(a), 312(a),.72 Stat.
1035; June 25, 1959, P. L. 86-70, ? 32(c)(2), 73 Stat. 149; Aug. 18, 1959, P.
L. 86-168, Title I, ? 104(h), Title II, ? 202(a), 73 Stat. 387, 389; July 12,
1960, P. L. 86-624,: ? 30(c)(2), 74 Stat. 420; Sept. 13, 1960, P. L. 86-778,
Title I, ?? 103(c)-(f), (j)(2)(A), (B), 104(a), 74 Stat. 936, 937, 942; Sept. 21,
1961, P. L. 87-256, ? 110(e)(2), 75 Stat. 537; Sept. 22, 1961, P. L. 87-293,
Title II, ? 202(b)(1), 75 Stat. 626; Oct. 3, 1961, P. L. 87-345, ? 3, 75 Stat.
761; July 30, 1965, P. L. 89-97, Title III, ?? 311(a)(3), (4), 317(a), 79 Stat.
380, 381, 388; Jan. 2, 1968, P. L. 90-248, Title I, Part 2, ? 123(a), Title IV,
? 403(a), 81 Stat. 844, 931; Oct. 30, 1972, P. L. 92-603, Title I,
?? 123(a)(1), 128(a), 129(a)(1), 86 Stat. 1354, 1358, 1359.)
HISTORY; ANCILLARY LAWS,AND DIRECTIVES
References in text:
"This title", referred to in this section, is Title II of the Social Security
Act of 1935 and appears as 42 USCS ?? 401, 402-410, 411-418, 420-
423, 424a-426, 427-431.
"Title V of the Agricultural Act of 1949, as amended," referred to in
subsec. (a)(1) of this section, is Act Oct. 31, 1949, c. 792, Title V, as
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 4SURANCE BENEFITS
42 USCS ? 410
added July 12, 1951, c. 223, 65 Stat. 119, as amended, which formerly
appeared as 7 USCS ?? 1461-1468.
", referred in
"Section 1410 of the Internal Revenue Code [of 1939] 7851 of the
subsec. (a)(5), (6)(B), of this section, was repealed by ?
Internal Revenue Code of 1954 [26 USCS ? 7851]. Similar provisions as
reenacted appear as 26 USCS ? 3111. For provision that reference in
other laws to Internal Revenue Code of 1939 be deemed also to refer to
the corresponding provision of Internal Revenue Code of 1954, see 26
USCS ? 7852(b):;
"Section 1532:?f the Internal Revenue Code [of 19391", referred tto in
subsec. (a)(9) of this section, was repealed by ?
Revenue Code of 1954 [26 USCS ? 7851]. Similar provisions as ree-
nacted appear as 26 USCS ?? 3231 and 7701. For provision that
reference in other laws to Internal R vevenue Code
Internalof 939 be deemed
also to refer to the corresponding p
of 1954, see 26 USCS ? 7852(b).
"Section 101 of the Internal Revenue Code [of 1939]", referred rof tothe in
subsec. (a)(10)(A) of this section, was repealed by ?
Internal Revenue Code of 1954 [26 USCS
2, ? 7521, 522. For 8511. Similar provision as
reenacted appear as 26 USCS ??
reference in other laws to Internal Revenue Code of 1939 be deemed
also to refer to the corresponding provision of Internal Revenue Code
of 1954, see 26 USCS ? 7852(b).
"Section 102 of the Servicemen's and Veterans' Survivor Benefits
enmen'A and
"such section 102", and "section 102(3) of the r
Veterans' Survivor Benefits Act",,referred to in subsecs. (1X19, (3), P. L.
of this section, was repealed and superseded by Act Sept. 2,. 5 as L.
85-857, 72 Stat. 1105. Similar provisions as reenacted appear 38
USCS ?? 101, 106, 401-404, 421.
Explanatory notes:
This section as originally enacted contained a prior 210 (Act Aug. 14,
by
1935, c. 531, Title II, ? 210, 49 Stat. 625), was pc. by
666,
? 209 of Act Aug. 14, 1935, as amended by Act Aug. 10, 1939,
Title II, ? 201, 53 Stat. 1373, see 42 USCS ? 40 531, Title II, ? 210, as
Another prior ? 210 (Act Aug.
added Aug. 10, 1946, c. 951, Title II, ? 201, 60 Stat. 979) was
superseded by ? 217 of Act Aug. 14, 1935, as'added Aug. 28, 1950, c.
809, Title I, ? 105, 64 Stat. 512, which appears as 42 USCS ? 417.
Transfer of functions:
The Coast and Geodetic Survey was consolidated with the Weather
Bureau to form the Environmental Science Services Administration by
Reorganization Plan No. 2 of 1965. The Environmental Science Ser-
vices Administration was abolished by Reorganization Plan No. 4 of
1970, which established the National Oceanic and Atmospheric Admin-
istration. See 5 USCS ? 903 note.
Amendments:
1951. Act Oct. 31, 1949, as added July 12, 1951, in subsec. (a)(1),
added subparagraph (C).
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5 ,
42 USCS ? 410 SOCIAL SECURITY ACT
1954. Act Sept. 1, 1954, in subsec. (a), in that part preceding paragraph
(1), in clause (B), substituted "(i) of' for "for", and added subclause
(ii); Substituted paragraph (1) for former paragraph (1), which read:
"(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 agricul-
tural 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 subse-
quent 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 preceding 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 commod-
ity 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 Agricul-
tural Act of 1949, as amended.";
Deleted former paragraph (3), which read:
"(3) Service not in the course of the employer's trade or business
performed in any calendar quarter by an employee, unless the cash
remuneration paid for such service is $50 or more and such service
is performed by an individual who is regularly employed by such
employer to perform such service. 'For the purposes of this para-
graph, an individual 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 such quarter such individual. performs for
such employer for some portion of the day service not in the course
of the employer's trade or business, or (B) such individual was
regularly employed (as determined under clause (A)) by such em-
ployer in the performance of such service during the preceding
calendar quarter. As used in this paragraph, the term 'service not in
the course of the employer's trade or business' does not include
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
4SURANCE BENEFITS 42 USCS ? 410
domestic service in a private, home of the employer and does not
include service described in subsection (f)(5);";
Redesignated former paragraphs (4)-(14) as paragraphs (3)-(13), re-
spectively;
In paragraph (4), as redesignated, inserted "(A)" and added clause (B);
In: paragraph (6), as redesignated, in subparagraph (B), in that part
preceding clause. (i), inserted "by an individual" and "and if such
service is covered by a retirement system established by such instru-
mentality;";
At the end of clause (iii), deleted "or"; at the end of clause (iv),
substituted "; or" for ";", and added clause (v);
In subparagraph (C), in clause (i), deleted "," following "Commis-
sioner", and substituted clauses (iii)-(vi) for former clauses (iii)-(xiii),
which read:
"(iii) in the field service of the Post Office Department unless
performed by any individual as an employee who is excluded by
Executive order from the operation of the Civil Service Retirement
Act of 1930 because he is serving under a temporary appointment
pending final determination of eligibility for permanent or indefinite
appointment;
or of any other board, council, committee, or other similar body,
unless such board, council, committee, or other body is composed
exclusively of individuals otherwise in the fulltime employ of the
United States; or
"(xiii) by an individual to whom the Civil Service Retirement Act of
1930 does not apply because such individual is subject to another
retirement system;";
Deleted former paragraph (15), which read:
"(15) Service performed by an individual in (or as an officer or
member of the crew of a vessel while it is engaged in) the catching,
taking, harvesting, cultivating, or farming of any kind of fish,
shellfish, crustacea, sponges, seaweeds, or other aquatic forms of
animal and vegetable life (including service performed by any such
individual as an ordinary incident to any such activity), except (A)
service performed in connection with the catching or taking of
salmon or halibut, for commercial purposes, and (B) service per-
formed on or in connection with a vessel of more than ten net tons
(determined in the manner provided for determining the register
tonnage of merchant vessels under the laws of the United States);";
"(iv) in or under the Bureau of the Census of the Department of
Commerce by temporary employees employed for the taking of any
census;
"(v) by any.individual as an employee who is excluded by Executive
order from the operation of the Civil Service Retirement Act of
1930 because he is paid on a contract or fee basis;
"(vi) by any individual as an, employee receiving nominal compensa-
tion of $12 or less per annum;
"(vii) in a hospital, home, or other institution of the United States
by a patient or inmate thereof;
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410 SOCIAL SECURITY ACT
"(viii) by any individual as a consular agent appointed under
authority of section 551 of the Foreign Service Act of 1946 (22 U. S.
C., sec. 951); ,
"(ix) by any individual as an employee included under section 2 of
the Act of August 4, 1947 (relating to certain interns, student
nurses, and other student employees of hospitals of the Federal
Government; 5 U. S. C., sec. 1052);
"(x) by any individual as an employee serving on a temporary basis
in case of fire, storm, earthquake, flood, or other similar emergency;
"(xi) by any individual as an employee who is employed under a
Federal relief program to relieve him from unemployment;
"(xii) as a member of a State, county, or community committee
under the Production and Marketing Administration
Redesignated former paragraphs (16) and (17) as paragraphs (14) and
(15), respectively;
In subsec. (k)(3)(C), deleted ", if the performance of such services is
subject to licensing requirements under the laws of the State in which
such services are performed" preceding ";".
1956. Act Aug. 1, 1956, c. 836, in subsec. (a)(1), in subparagraph (B),
inserted ", or from any foreign country or possession thereof,";
In subsec. (a)(6), in subparagraph (B)(ii), inserted "a Federal Home
Loan Bank,", and in subparagraph (C)(vi), deleted "of 1930" following
"Act", and added "(other than the retirement system of the Tennessee
Valley Authority)";
In subsec. (a), at the end of paragraph (14), deleted "or", at the end of
paragraph (15), substituted ";" for ".", and added paragraphs (16) and
(17);
Added subsec. (o).
Act Aug. 1, 1956, c. 837, added subsecs. (m) and (n).
1958. Act Aug. 28, 1958, substituted subsec. (a)(1) for :ormer subsec.
"(1)(A) Service performed in connection with the production or
harvesting of any commodity defined as an agricultural commod-
ity in section 15(g) of the Agricultural Marketing Act, as
"(B) Service performed by foreign agricultural workers (i) under
contracts entered into in accordance with title V of the Agricul-
tural Act of 1949, as amended, or (ii) lawfully admitted to the
United States from the Bahamas, Jamaica, and the other British
West Indies, or from any foreign country or possession thereof,
In`subsec. (a)(8), substituted subparagraph (B) for former subparagraph
(B) Service performed in the employ of a religious, charitable,
educational, or other organization exempt from income tax under
section 101(6) of the Internal Revenue Code, but this subparagraph
shall not apply to service performed during the period for which a
certificate, filed pursuant to section 1426(1) of the Internal Revenue
Code, is in effect if such service is performed by an employee (i)
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410
whose signattlfe appears on the list filed by such organization under
such section 1426(1), or (ii) who became an employee of such
organization after the calendar quarter in which the certificate was
filed;".
1959. Act June 25, :1959, in subsecs. (h) and (i), deleted "Alaska,"
preceding "Hawaii".:
Act Aug. 18, 1959, in subsec. (a)(6)(B)(ii), inserted "a Federal land
bank, a Federal intermediate credit bank,, a bank for cooperatives" and
substituted "Federal land bank association" for "national farm loan
association".
1960. Act July 12, 1960, in subsec. (h), deleted "Hawaii," preceding
the District" and "," following "Columbia";
In subsec. (i),'deleted "Hawaii," preceding "the District".
Act Sept. 13, 1960, in subsec. (a)(3), inserted "(A)", and in clause (A),
deleted "son; daughter, or" preceding "spouse";
Added clause (B);
Substituted subsec. (a)(7) for former subsec. (a)(7), which read:
"(7) Service (other than service included under an agreement under
section 218 and other than service which, under subsection (1),
constitutes covered transportation service) performed in the employ
of a State,.or any political subdivision thereof, or any instrumental-
ity of any one or more of the foregoing which is wholly owned by
one or more States or political subdivisions;"
In subsec. (a), at the end of paragraph (16), deleted "or", at the end of
paragraph (17), substituted "; or" for ".", and added paragraph (18);
In subsec. (h), substituted ", the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, and American Samoa" for "and the Virgin
Islands; and on and after the effective date specified in section 219 such
term includes Puerto Rico";
I n subsec. (1), substituted "the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, and American Samoa"' for "and the Virgin
Islands; and on and after the effective date specified in section 219 such
term includes Puerto Rico";
Repealed former subsec. (j), which read:
"(j) An individual who is a citizen of Puerto Rico (but not otherwise a
citizen of the United States) and who is not a resident of the United
States shall not be considered, for the purposes of this section, as a
citizen of the United States prior to the effective date specified in
section 219.";
Redesignated former subsecs. (k), (1), (m), (n), and (o) as subsecs. (j),
(k), (1), (m), and (n), respectively.
1961. Act Sept. 21, 1961, in subsec. (a), at the end of paragraph (17),
deleted "or", at the end of paragraph (18), substituted "; or" for ".",
and added paragraph (19).
Act Sept. 22, 1961, added subsec. (o).
1965. Act July 30, 1965, in subsec. (a)(6)(C)(iv), inserted ", other than
as a medical or dental intern or a medical or dental resident in
training";
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410
ir' t~,'klLiF .~
SOCIAL SECURITY ACT
In subsec. (a)(7), at the end of subparagraph (B), deleted "or", at the
end of subparagraph (C), substituted ", or" for ";", and added subpara-
graph (D);
In subsec. (a)(13), deleted "and service performed as an interne in the
employ of a hospital by an individual who has completed a four years'
course in a medical school chartered or approved pursuant to State
law;" following "pursuant to State law;".
1968. Act Jan. 2, 1968, in subsec. (a)(3)(B), added that part beginning
with "except that the provisions of this subparagraph" and ending with
"in the calendar quarter in which the service is rendered;";
In subsec. (a)(6)(C), in clause (iv), substituted "under section 5351(2)
of title 5, United States Code" for "under section 2 of the Act of
August 4, 1947", and deleted "; 5 U.S.C., sec. ' 1052" following
"Government";
In clause (vi), substituted "subchapter III of chapter 83 of title 5,
United States Code," for "the Civil Service Retirement Act";
In subsec. (a)(7)(D), in clause (ii), substituted "under section 5351(2) of
title 5, United States Code" for "under section 2 of the Act of August
4, 1947" and deleted "; 5 U.S.C. 1052" following "Government".
1972. Act Oct. 30, 1972, in subsec. (a)(7), at the end of subparagraph
(C), deleted "or", at the end of subparagraph (D), substituted ", or"
for ";", and added subparagraph (E);
In subsec. (a)(8), in subparagraph (A), added that part beginning with
", except that this subparagraph shall not apply" and ending with
.,such member belongs";
In subsec. (a)(10), substituted subparagraph (B) for former subpara-
graph (B), which read:
"(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 univer-
sity;".
Redesignation:
Act Oct. 3, 1961, redesignated ? 505(a) of Act Oct. 31, 1949, to be
? 506(a) of Act Oct. 31, 1949.
Effective dates:
Section 104(b) of Act Aug. 28, 1950, provided that this section, as
added by ? 104(a) of Act Aug. 28, 1950, "shall take effect January 1,
1951".
Section 101(n) of Act Sept. 1, 1954, provided that the amendment to
subsec. (a)(1), the deletion of former subsec. (a)(3) and the redesigna=
tion of former subsecs. (a)(4)-(14) to be subsecs. (a)(3)-(13), respec-
tively, "shall be applicable only with respect to services (whether
performed after 1954 or prior to 1955) for which the remuneration is
paid after 1954."
Section 101(n) of Act Sept. 1, 1954, further provided that the amend-
ments to subsec. (a)(4), (a)(6)(B) and (C), (a)(14), (a)(15), and (k)(3)(C)
of this section "shall be applicable only with respect to services
performed after 1954."
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
W
 taxable years ending after 1955. The amendment made by paragraph
(3) of subsection (c) [to 42 USCS ? 411(c)(2)] shall apply with
e
t
}-
(a)(
performed after 1954:. The amendment made by paragraph;, (2) of
\i?\7 _L_11 ---1 .. ...:~1. rnenP~t to
"(1) The amendment made by subsection (a) [to subsec. (a)ti)(B) 01
this section] shall apply with respect to service performed after 1956.
The amendments made by paragraph (1) of subsection (c) [to subsec.
(16) of this section] shall apply with respect to service
14
[
k o
taxable years with respect to which the amendment made by section
a
Y
t 42 USCS ? 411(a)(7)(B)] shall apply with respect to the same
h
y
ma
respect to taxable years ending after 1954. inc amendmen
subsection (d) [42 USCS ? 411(c)(5)] shall apply with respect to
xable ears ending after 1955. The amendment made by subsection
t
201(g) of this Act [to 26 USCS ? 1402(a)(8)(1j)] applies.
"(2)(A) Except as provided in subparagraphs (B) and (C), the
nd
(ii)
B
6
a
)
)(
amendments made by subsection (b) [to subsecs. (a)(
(a)(6)(C)(vi) of this section] shall apply only with respect to
service performed after June 30, 1957, and only if-
"(i) in the case of the amendment made by paragraph (1) of
such subsection [to subsec. (a)(6)(B)(ii) of this section], the
conditions prescribed in subparagraph (B) are met; and
"(ii) in the case of the amendment made by paragraph (2) of
such subsection [to subsec. (a)(6)(C)(vi) of this section], the
conditions prescribed in subparagraph (C) are met. .
"(B) The amendment made by paragraph (1) of subsection (b) [to
subsec. (a)(6)(B)(ii) of this section] shall be effective only if,-
"(i) the Federal Home Loan Bank Board submits to the
Secretary of Health, Education, and Welfare, and the Secretary
approves, before July 1, 1957, a plan, with respect to employ-
ees of Federal Home Loan Banks, for the coordination, on an
equitable basis, of the benefits provided by the retirement
system applicable to such employees with the benefits provided
by title II of the Social Security Act [see references in text note
this section]; and
"(ii) such plan specifies, as the effective date of the plan, July
1, 1957, or the first day of a prior calendar quarter beginning
not earlier than January 1, 1956.
If the plan specifies as the effective date of the plan a day before
July 1, 1957, the amendment made by paragraph (1) of subsection
(b) [to subsec. (a)(6)(B)(ii) of this section] shall apply with respect to
service performed on or after such effective date; except that, if such
effective date is prior to the day on which the Secretary approves the
prior to the day on which the Secretary approves the
erformed
p
,
plan, by an individual who is not an employee of a Federal Home
Loan Bank on such day.
"(C) The amendment made by paragraph (2) of subsection (b) [to
subsec. (a)(6)(C)(vi) of this section] shall be effective only if-
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
INSURANCE BENEFITS 42 USCS ? 410
Section 104(i) of Act Aug.';:1, 1956, c. 836, provided:
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
( s a
t4~
C/
324
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410 SOCIAL SECURITY ACT
"(i) the Board of Directors of the Tennessee Valley Authority
submits to the Secretary of Health, Education, and Welfare,
and the Secretary approves, before July 1, 1957, a plan, with
respect to employees of the Tennessee Valley Authority, for
the coordination, on an equitable basis, of the benefits provided
by the retirement system applicable.to such employees with the
benefits provided by title II of the Social Security Act [see
.references in text note this section];, and
"(ii) such plan specifies, as the effective date of the plan, July
1, 1957, or the first day of a prior calendar quarter beginning
not earlier than January 1, 1956.
If the plan specifies as the effective date of the plan a day before
July 1, 1957, the amendment made by paragraph (2) of subsection
(b) [to subsec. (a)(6)(C)(vi) of this section] shall apply with respect
to service performed on or after such effective date; except that, if
such effective date is prior to the day on which the Secretary
approves the plan, such amendment shall not apply with respect to
service: performed, prior to the day on which the Secretary approves
the plan, by an individual who is not an employee of the Tennessee
Valley Authority on such day.
"(D) The Secretary of Health, Education, and Welfare shall, on
or before July 31, 1957, submit a report to the Congress setting
forth the details of any plan approved by him under subpara-
graph (B) or (C)."
Section. 125(b) of Act Oct. 30, 1972, repealed subparagraphs (A)(i) and
(B) of paragra
h (2)
f
104
p
o
?
(i) of Act Aug. 1, 1956, c. 836.
Section 105(d) of Act Aug. 1. 1956. c. R36 ,.node, that
h
t
mend
erform
d
--- ---.. 1
e
and 17JO.
Section 603(a) of Act Aug. 1, 1956
c. 837
provided th
t
h
,
,
a
t
e amend-
ment of this section by adding subsecs. (m) and (n) "shall take effect
on January 1, 1957."
Section M (b) 1(b) of Act Aug. 28, 1958
provided that th
,
e amendment of
subsec. (a)(1) of this section "shall apply with respect to service
performed after 1958."
Section 312(b) of Act Aug. 28, 1958, provided that the amendment of
subsec. (a)(8)(B) of this section "shall apply with respect to certificates
filed under section 3121(k)(1) of the Internal Revenue Code of 1954 [26
USCS ? 3121(k)(1)] after the date of enactment of this Act [Aug. 28,
19581."
Section 47(d) of Act June 25, 1959, provided, .that the amendment :of
subsecs
(h) and (i)
f
hi
"
.
o
, t
s section
shall be.:effective on January3,
1959."
Section 104(k) of Act Aug. 18. 1959_ provided i.16.t the _
dment of
- -
tin
d
k
-
g a e
e al land ban
association": for "national farm loan association" "shall become effec-
tive December 31, 1959."
Section 203(c) of Act Aug. 18, 1959, provided that the amendment of
subsec. (a)(6)(B)(ii) of this section by inserting "a Federal land bank, a
 - Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
tJRANCE BENEFITS 42 USCS ? 410
Federal intermediate credit bank, a bank for cooperatives," "shall
become effective January 1, 1960."
Section 47(f) of Act July 12, 1960, provided that the amendments to
subsecs. (h) and (i) of this section "shall become effective on August
21, 1959."
Section 103(v)(1), of Act Sept. 13, 1960, ,provided that the amendment
of subsecs. (h) and:'(i) of this section `,shall apply only with respect to
service performed. after 1960; except that:insofar as the carrying on of a
trade or business '(other than performance of service as an employee) is
concerned, such amendments shall apply only in the case of taxable
years beginning after 1960.", provided that the amendment of subsec.
(a) of this section by adding paragraph (18) "shall apply only with
respect to service performed after 1960.", and provided that the
amendments to this section by repealing former subsec. (j) and by
redesignating former subsecs. (k) through (o) as subsecs. (j) through (n)
"shall take effect on the date of enactment of this Act [Sept. 13,
1960]"
Section 103(v)(1), (2) of Act Sept. 13, 1960, provided that subsec. (a)(7)
of this section, as amended, "shall apply only with respect to (1)
service in the employ of the Government of Guam or any political
subdivision thereof, or any instrumentality of any one or more of the
foregoing wholly, owned thereby, which, is performed after 1960 and
after the calendar quarter in which';' the Secretary of the Treasury
receives a certification by the Governor. of Guam that legislation has
been enacted by the Government of Guam expressing its desire to have
the insurance system established by title II of the Social Security Act
[see references in text note this section] extended to the officers and
employees of such Government and such political subdivisions and
instrumentalities, and (2) service in the employ of the Government of
American Samoa or any political subdivision thereof or any instrumen-
tality of any one or more of the foregoing wholly owned thereby, which
is performed after 1960 and after the calendar quarter in which the
Secretary of the Treasury receives a . certification by the Governor of
American Samoa that the Government of American Samoa desires to
have the insurance 'system established by such title II [see references in
text note this section] extended to the officers and employees of such
Government and such political subdivisions and instrumentalities." and
"shall have application only as expressly provided therein, and determi-
nations as to whether an officer or employee of the Government of
Guam or the Government of American Samoa or any political subdivi-
sion thereof, or of any instrumentality of any one or more of the
foregoing which is wholly owned thereby, is an employee of the United
States or any agency or instrumentality thereof within the meaning of
any provision of'law not affected by" subsec. (a)(7), as amended, "shall
be made without' any inferences drawn from" subsec. (a)(7), as
amended.
Section 104(c) of Act'Sept. 13, 1960, provided that the amendment to
subsec. (a)(3) of this section "shall apply only with respect to services
performed after 1960."
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For
42 USCS ? 410
Section 110(h)(3) of Act Sept. 21, 1961, provided that paragraph (19)
of subsec. (a) of this section "shall apply with respect to service
performed after December 31, 1961."
Section 202(c) of Act Sept. 22, 1961, provided that subsec. (o) of this
section "shall apply with respect to service performed after the date of
the enactment of this Act [Sept. 22, 1961]. In the case of any individual
who is enrolled as a volunteer or volunteer leader under section 16(a)
of this Act," such subsection "shall apply with respect to service
performed on or after the effective date of such enrollment."
Section 311(c) of Act July 30, 1965, provided that the amendments of
subsecs. (a)(6)(C)(iv) and (a)(13) of this section "shall apply only with
respect to services performed after 1965."
Section 317(g) of Act July 30, 1965, provided that subsec. (a)(7)(D) of
this section "shall apply with respect to service performed after the
calendar quarter in which this section is enacted and after the calendar
quarter in which the Secretary of the Treasury receives a certification
from the Commissioners of the District of Columbia expressing their
desire to have the insurance system established by title II [see refer-
ences in text note this section] (and part A of title XVIII [42 USCS
?? 1395c-1395i-2]) of the Social Security Act extended to the officers
and employees coming under the provisions of such subsection."
Section 123(c) of Act Jan. 2, 1968, provided that subsec. (a)(3)(B) of
this section, as amended, "shall apply with respect to services per-
formed after December 31, 1967."
Section 125(a) of Act Oct. 30, 1972, provided-that subsec. (a)(6)(B)(ii)
of this section, insofar as it relates to service performed in the employ
of a Federal home loan bank, "shall be effective-
"(1) with respect to all service performed in the employ of a Federal
home loan bank on and after the first day of the first calendar
quarter which begins on or after the date of the enactment of this
Act [Oct. 30, 1972]; and
"(2) in the case of individuals who are in the employ of a Federal
home loan bank on such first day, with respect to any service
performed in the employ of a Federal home loan bank after the last
day of the sixth calendar year preceding the year in which this Act
is enacted [1972]; but this paragraph shall be effective only if an
amount equal to the taxes imposed by sections 3101 and 3111 of
such Code [26 USCS ?? 3101 and 3111] with respect to the services
of all such individuals performed in the employ of Federal home
loan banks after the last day of the sixth calendar year preceding the
year in which this Act is enacted are paid under the provisions of
section 3122 of such Code [26 USCS ? 3122].by July 1, 1973, or by
such later date as may be provided in an- agreement entered into
before such date with the Secretary of the Treasury or his delegate
for purposes of this paragraph."
Section 128(c) of Act Oct. 30, 1972, provided that the amendment of
subsec. (a)(7) of this section by adding subparagraph (E), "shall apply
with respect to service performed on and after the first day of the first
calendar quarter which begins on or after the date of the enactment of,..-:
this Act [Oct. 30, 1972]."
MqMPPjPW Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410
INSURANCE BENEFITS 10 B of
Section 129(b) of Act Oct. 30, 1972, provided that subsec. (a)( )( )
this section, as amended, "shall apply to services performed after
December 31, 1972."
Other provisions:
other
Covered "employment under oth ToFaedal,`INRetirement otwithstand "Notwithstanding any Section
115 of Act.:;Sept. 1, 1954, eligibility for or the amount of any
provision of law, in determining
Railroad .
Socia benefit (other than a benefit
note to title 11 of ore u derl the
[see references text [45 USCS ?? 228a-228c-1, 228e
Retirement Act of 1937, as amended ement system established by the
228h, 2281-228s. any under any
United States or ainstrumentality thereof, there shall not be taken
into account any service which, by reason of the amendments
of thios
of the Social Security Act made by section 101(c)
section 210(a) constitutes employment as defined in
Act [subsec. (a) of this section],
such section 210(a) [subsec. (a) of this section]."
84 ater18al r 7 5 e rtirement
epealed
Covered employment not p. L. counted 91-630, under ? 1 other
systems. Act Dec. 31, 1970,
section 115 of Act Sept. 1, 1954. provided:
Section 2 of such repealing Act [Act Dec. 31, 19 the first section of this
"(a) The repeal of such section 115, made by who, on the date of
Act, shall not apply in the case of a person
enactment of this Act [Dec..31, 19701, is receiving or is entitled to
the United
receive benefits under any retirement system established by
States or any instrumentality thereof unless he requests, i in hw riting, the
office which administers his retirement system t too
request made under
"(b) Any additional benefits payable
subsection (a) of this section shall commence on the first of the month
following enactment of this Act [Dec. 31, 19701."
to Sept. 1, 1954.
Service for certain tax exempt organizations prior
Section 403 of Act Sept. 74 19a54,9a am nde dSept. 13, 1960, P. L. 86-
778, Title I, ? 105(b)(),
"(a) In any case in which-
"(1) an individual has been emp y
1950 and prior to the enactment of this Act [Sept. 1, 18541, by an
organization which is exempt from income tax under section 101(6)
of the Internal Revenue Code of 1939 [for similar provisions as
reenacted see 26 USCS ? 5101 but which has failed to file prior to
19541 a waiver certificate under
the enactment of this Act [Sept. 1,
section 1426 (1)(1) of the Internal Revenue Code of 1939 [for similar
provisions as reenacted see 26 USCS ? individual as an employee of
"(2) the service performed by such such organization during the period subsequent to 1950 and prior to
1955 would have constituted employment (as defined in section 210
of the Social Security Act [this section] and section 1426(b) of the
Internal Revenue Code of 1939 [for similar provisions as reenacted
see 26 USCS ? 3121(b)]) if such organization had filed prior to the performance of such service such a certificate accompanied by a list
327
1
i.
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
had appeared on the list of signatures of employees who concurred
in the filing of such certificate;
.`13) the taxes imposed by sections ..1400 and 1410 of the:lnternal
Revenue Code of 1939 [for similar:: provisions as reenacted, see 26
USCS ?? 3101, 3111] have been paid prior to the enactment of this
Act [Sept. 1, 1954] with respect to any part of the remuneration
paid to. such individual by such organization for such service; and
"(4) no refund of such taxes has been obtained,
the amount of such remuneration with respect to which sucH taxes
have been paid shall, upon the request of such individual (filed on or
before January 1, 1957, and in such form. and manner, and with such
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
42 USCS ? 410 SOCIAL SECURITY ACT
of the signatures of employees who concurred in the filing of such
certificate and such individual's signature had appeared on such list;
"(3) the taxes imposed by sections 1400 and 1410 of the Internal
Revenue Code of 1939 [for similar provisions as reenacted see 26
USCS ?? 3101 and 3111] have been paid with respect to any part of
the remuneration paid to such individual by such organization for
such service;
"(4) part of such taxes have been paid prior to the enactment of this
Act [Sept. 1, 1954]:
"(5) so much of such taxes as have been paid prior to the enactment
of this Act [Sept. 1, 1954] have been paid by such organization in
good faith and upon the assumption that a waiver certificate had
been filed by it under section 1426(1)(1) of the Internal Revenue
Code of 1939 [for similar provisions as reenacted see 26 USCS
?:3121(k)]; and
"(6) no refund of such taxes has been: obtained,
the amount of such remuneration with respect to which such taxes
have been paid shall, upon the request of such individual (filed on or
before the date of enactment of the Social Security Amendments of
1960 [Sept. 13, 1960] in such form and manner, and with such official,
as may be prescribed by regulations made under subchapter A of
Chapter 9 of the Internal Revenue Code of 1939 [for similar provisions
as reenacted see 26 USCS ?? 3101, 3102, 3111, 3112, 3121-3125, 3501-
3503, 6011, 6051, 6071, 6081, 6091, 6205, 6302, 6313, 6413, 6601,
6802, 6803, 7208, 7209, 7701, 7805]), be deemed to constitute remuner-
ation for employment as defined in section 210 of the Social Security
Act [this section] and section 1426(b) of the Internal Revenue Code of
1939 [for similar provisions as reenacted see 26 USCS ? 3121(b)].
"(b) In any case in which-
"(.1) an individual has been employed, at any time subsequent to
1950 and prior to the enactment of this Act [Sept. 1, 1954], by an
organization which has filed a waiver certificate under section
1426(1)(1) of the Internal Revenue Code of 1939 [for similar provi-
sions as reenacted see 26 USCS ? 3121(k)];
"(2) the service performed by such individual during the time he
was so employed would have constituted employment (as defined in
section 210 [this section] of the Social Security Act and section
 Approved For Release 2011/03/07: CIA-RDP89-00066R00030001
INSURANCE BENEFITS 42 USCS ? 410
official, as may be prescribed by regulations made under subchapter A
of chaptts_ 9 of the Internal Revenue Code of 1939 [for similar
provisions as reenacted see 26 USCS ?? 3101, 3102, 3111, 3121-3125,
3501-3503, 6011, 6051, 6071, 6081, 6091, 6205, 6302, 6313, 6413,
6601, 6802, 6803, 7208, 7209, 7509, 7701, 7805]), be deemed to
.constitute remuneration for employment as defined in section 210 of
the Social Security Act [this section] and section 1426(b) of the
Internal Revenue Code of 1939 [for similar provisions as reenacted see :
26 USCS ? 3121(b)], and such individual shall be deemed to have
concurred in the filing of the waiver certificate filed by such organiza-
tion under section 1426(l)(1) of the Internal Revenue Code of 1939 [for
similar provisions as reenacted see 26 USCS ? 3121(k)]."
Savings provision. Section 103(v)(3) of Act Sept. 13, 1960, provided:
"(3) The repeal (by subsection (j)(1)) of section 219 of the Social
Security Act [42 USCS ? 419], and the elimination (by subsections
(e), (f), (h), (j)(2), and (j)(3)) of other provisions of such Act
[subsecs. (h)-{j) of this section, 42 USCS ? 411(a)(6), (b)] making
reference to such section 219 [42 USCS ? 419], shall not be con-
strued as changing or otherwise affecting the effective date specified
in such section for the extension to the Commonwealth of Puerto
Rico of the insurance system under title II of such Act [see
references in text note this section], the manner or consequences of
such extension, or the status of any individual with respect to whom
the provisions so eliminated are applicable."
Repeal-Amendments Not Affected. Section 5(a) of Act Sept. 13, 1966,
P. L. 89-572, 80 Stat. 765, repealed Title II of Act Sept. 22, 1961,
which added subsec. (o) to this section; however, ? 5(b) of Act Sept.
13, 1966, read: "Such repeal shall not be deemed to affect amendments
contained in such provisions and the application of the amendments
contained in the title. All determinations, authorization, regulations,
orders, contracts, agreements, and other actions issued, undertaken, or
entered into under authority of the provisions of law repealed by
subsection (a)-shall continue in full force and effect until modified by
appropriate authority."
CODE OF FEDERAL REGULATIONS
Federal old-age, survivors and disability insurance (1950- ), 20 . CFR
404.1 et seq.
CROSS REFERENCES
This section is referred to in 20 USCS ? 125; 26 USCS ? 3121; 33 USCS
? 857; 42 USCS ?? 402, 403, 404, 405, 409, 411, 415, 416, 417, 418, 426a,
428, 429, 1395x; 45 USCS ?? 228e, 228g.
RESEARCH GUIDE
Am Jur:
48 Am Jur, Social Security, Unemployment Insurance, and Retirement
Funds ?? 2, 9, 10.
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
2. Included and excluded services
Subsection (b) of this section applies only
where an employee performs, for the same em-
ployer, both an included and excluded service
within the meaning of subsec. (a). Gardner v
Travis (1967, CAM Okla) 387 F2d 508, mod in
Travis v Richardson 434 F2d 225.
When corporation engaged in agricultural la-
bor made tax returns from which it is impossible
to segregate wages of any particular employee
and determine what part of his services were
devoted strictly to agricultural work, and many
employees were rendering services which were
not exempt, corporation could not recover social
security taxes paid on ground that it is engaged
in agricultural labor. Fromm Bros:, Inc. v
United States (1940, DC Wis) 35 F Supp 145.
3. Covered employment
An Illinois state bank receiver was an em-
ployee of the bank, and not of the state, with
respect to allowance of social security benefits.
Carroll v Social Secur. Board (1942, CA7 Ill)
128 F2d 876.
Evidence supported finding that retired univer-
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
Annotations:
Social Security Acts: Requisite of employment as affected by family
relationship between alleged employer and employee. 8 ALR3d .696.
Outside pieceworkers as within Social Security or Unemployment
Compensation Act. I ALR2d 555.
Salesman on commission as within Unemployment Compensation or
Social Security Acts. 29 ALR2d 751.
What constitutes "agricultural" or "farm" labor within Social Security
or Unemployment Compensation Acts. 53 ALR2d 406.
Professional personnel such as physicians, surgeons, dentists, lawyers,
and the like as "employees" within Social Security Act. 88 ALR2d 979.
Taxicab driver as employee of owner of cab, or independent contractor,
within social security and unemployment insurance statutes. 10 ALR2d
369.
INTERPRETIVE NOTES AND DECISIONS
2. Included and excluded services
3. Covered employment
4. Non-covered employment
5. -Familial services
6. -Agricultural labor
7. -Charitable organizations
Construction
In applying common-law standards t
d
fi
o
e
ne
the term "employee," the factor of control, if not
determinative, is of considerable importance.
Cody v Ribicoff (1961, CA8 Iowa) 289 F2d 394'
88 ALR2d 970.
Where claimant is. not an "employee" under
42 USCS ? 410(j)(2) earning "wages" under 42
USCS ? 409, he should be included in the alter-
native class of persons receiving self-employment
income under 42 USCS ? 411(a), except as spe-
cifically excluded from the latter provisions.
Delno v Celebrezze (1965, CA9 Ca) 347 F2d
159.
Under this section, the common-law rules
govern as to whether an individual is an em-
ployee or self-employed. Kelley v Celebrezze srty professor, who pursuant to "exclusive work"
(1965, DC NJ) 243 F Supp18. agreement spent 21 months over six years doing
The amendment of this act which brought consulting work in Canada, and who. spent the
greenhouses definitely within the exemption ap- remainder of the time at home in Oklahoma
plicable to employers of agricultural labor is an doing research pertaining to his specialty,
amendment in substance and not merely a leis- "worked" for the s Canadian v Richardson rm (1970, C the
lative interpretation of the language used in the whole k a) period. Travis v Ricg387 2d: 0, .
original enactment, and it does not control the Okla) 434 F2d,225, modifying 387 F508
interpretation of the North Dakota unemptoy_ boat, Crew hired members on a "sshha are of fish cial eomme halibut or fish caughhtt" or "lay"
ment compensation act which was enacted prior basis, were employees of the owners of the boat,
to the congressional amendment. Unemployment and not owners pro hac vice, although the union
Compensation Div. v Valker's Greenhouses, Inc. contract between the boat owners and the cr w
(1941) 70 ND 515, 296 NW 143. members laid
 ..TRANCE BENEFITS
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
that the crew members should share vari-
.inds of losses. Jacobson v United States
DC Wash) 44 F Supp 685.
:t that decedent was sole. administrator for
.ss where he worked does not necessitate
he forfeit his position as an employee.
rley v Federal Secur., Adm'r. (1948, DC
77 F Supp 112.
ere is nothing improper or questionable
a person entering bona fide employment
he express purpose of acquiring a wage
1 which will enable him to qualify for old-
nsurance benefits, and such motivation in
sizing a corporation does not defeat recov-
3rannon v Ribicoff (1961, DC Mont) 200 F
697.
nether claimant was induced to accept em-
nent solely for the purpose of becoming
feed for old-age and survivors' benefits, or
.her this was merely a collateral "fringe"
fit. of the relationship, could make no differ-
in determining whether claimant's services
covered employment. Neither could the
mahleness of the compensation for such
ices disqualify the claimant; the terms of the
cment between the parties. were matters for
determination and were binding, provided
arrangement was in good faith. Holland v
hrezze (1963, DC Tenn) 223 F Supp 347.
act that expert advice sought for and re-
ed was always followed by the business does
negate the "right of control" over the advi-
since the phrase means no more than the
it to determine which problems the expert
i tackle. Frantes v Celebrezze (1964, DC
nn) 237 F Supp 609.
;notations:
7utside piece workers as within Social Secu-
y or Unemployment Compensation Act. I
.R2d 555.
Salesmen on commission as within Unemploy-
mt Compensation or Social Security Acts. 29
LR2d 751.
Professional personnel such as physicians, sur-
ens, dentists, lawyers, and the like as "employ-
s" within Social Security Act. 88 ALR2d 979.
Non-covered employment
Employer-employee relationship did not exist
as to make corporation liable for social secu-
ty tax where agent solicited orders using corpo-
[ion's order forms but also solicited orders for
.her firms including competitors and was not
[titled to any pension or other benefits paid
nployees of said corporation. Benson v Social
cur. Board (1949, CA10 Kan) 172 F2d 682.
Services provided the Works Progress Admin-
,tration are not of a qualifying employment.
42 USCS ? 410
Siclari v Folsom (1958, CA9 Ca) 251 F2d 365,
cent den 358 US 844, 3 L Ed 2d 78, 79 S Ct 68.
Finding that widow's benefits recipient per-
formed "substantial services" for family owned
corporation, for which she was secretary and
director, and that she received compensation
therefor rather than distributed dividends, over-
turned where although the same services were
performed both before and after retirement, re-
cipient spent very little time in corporate busi-
ness, performed unskilled services, and had in-
vested a large amount of capital. Weisenfeld v
Richardson (1972, CA3 NJ) 463 F2d 670.
Saleslady on commission basis engaged in
selling household supplies from house to house
was not an "employee." Rambin v Ewing (1952,
DC La) 106 F Supp 268.
Meat inspector paid wages by slaughtering
plant was not an employee, although he worked
at regular hours, where appointment was made
by state, right of removal was by state, and
reports as to work were sent directly to state,
since plant did not control the inspector as to
results to be accomplished or as to the means
and manner in which the work was performed.
Schmidt v Ewing (1952, DC Pa) 108 F Supp
505.
Individual, subject to control and direction
merely as to the result to be accomplished and
not as to the means and methods to be used, is
an "independent contractor," not an employee.
Hemmerle v Hobby (1953, DC NJ) 114 F Supp
16.
5. -Familial services
There was substantial evidence to support
examiner's finding that no genuine employer-em-
ployee relationship existed between son engaged
in real estate business and mother, who allegedly
answered telephone, received rent money, made
appointments, and took notice of other minor
details of her son's business, all performed in the
home in which they both lived, where she was
67 years old, had virtually no work experience,
could neither read nor write English, and had
been sick for at least part of the alleged employ-
ment. Sabbagha v Celebrezze (1965, CA4 SC)
345 F2d 509.
Plaintiff employed by a partnership consisting
of his two sons was not entitled to the benefits of
this act. Ekus v Altmeyer (9143, DC NY) 52 F
Supp 306.
Referee's findings that the claimant's services
were in fact performed by him as employee of
his son and the creation of a corporation was
subterfuge to evade the provisions of subsec.
(a)(3) of this section were proper inferences and
are binding upon the district court. Howatt v
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 42 USCS ? 410
Folsom (1957, DC Pa) 160 F Supp. 490, affd
(CA3) F2d 680.
Evidence sustained referee's findings that
daughter taking care of mother and being com-
pensated by trustee-brother from funds of moth-
er's estate, the mother having been declared an
incompetent, was neither an employee or a self-
employed individual engaging in a trade or busi-
ness. Rhodes v Fleming (1960, DC Md) 180 F
Supp 664.
Findings that employer-employee relationship
did not exist under 42 USCS ? 410, and that
money received by plaintiff from the alleged
employer-corporation was in reality rentals from
real estate under 42 USCS ? 411 (a)(I), were not
supported by the evidence where plaintiff and his
wife transferred their property to the corpora-
SOCIAL SECURITY ACT
Turner Turpentine Co., (1940, CAS Ga) Ill
F2d 400.
Work of emptying containers of dried fruit
into hoppers of grading and processing machines
at and in the packing plant of a terminal market
is not agricultural labor. Miller v Burger (1947,
CA9 Cal) 161 F2d 992.
Picking fruit off conveyor belt for sorting,
packing fruit into forms known as bricks, and
filling paper bags and boxes with dried fruit and
grading same is not agricultural labor: Miller v
Bettencourt (1947, CA9 Cal) 161 F2d 995.
Where commercial plant was the place where
the farmer-producer of dried fruit parted with all
of his economic interest therein, it being pur-
chased outright for processing, packing, and
distribution by packing plant, such packing plant
was at l
e
rmine market. Miller v Burger (1947,
corporate reports and tax returns were re ularl
filed on behalf of the corporation, and business (1947, CA91Cal) 161 F2d 99 Miller v Bettencourt
was transacted in the corporate name, notwith-40
standing that annual meetings of the stockhold- house `WWhereere re per graded cent in of ba asement of frfd in ware-
home and directors were not held said stockhold sement o farm
-
ers and directors being the plaintiff, his wife, son
and daughter. Brannon v Ribicoff (1961, DC
Mont) 200 F Supp 697.
Services rendered by claimant for an Alabama
partnership consisting of her sons did not consti-
tute "service performed by an individual in the
employ of his son," since in Alabama a partner-
ship, in contemplation of law, is an entity dis-
tinct from the members who compose it. Kilborn
v Ribicoff (1962, DC Ala) 205 F Supp 630, affd
(CAS) F2d 166.
Father who sold plumbing business to his sons
who formed a partnership was an employee of
the partnership and not an independent contrac-
tor, considering the length and nature of his
relationship with the partnership and the fact
that he never performed services for others, and
as an employee of his son, his employment was
excluded by subsec. (a)(3)(B) of this section and
would not qualify for purposes of old age insur-
ance benefits. Frantes v Celebrezze (1964, DC
Mi
nn) 237 F S 609
upp.
Annotations:
Social Security Acts: Requisite of em
l ......e
p
l
emp
oyer and employee. 8 ALR3d 696.
Labor employed in production of crude gum
or oleoresin by the sacrification of living pine
and gum resin is "agricultural labor" and ex-
empt from social security tax. United States v
market, employee of warehouse was not a farm
laborer, since warehouse was "terminal market"
for farmer. Ewing v McLean (1951, CA9 Idaho)
189 F2d 887.
Breeding, raising and pelting of foxes is agri-
cultural labor for purpose of determining exemp-
tions, and livestock includes fur bearing animals
raised for pelts in captivity. Fromm Bros., Inc. v
United States (1940, DC Wis) 35 F Supp 145.
This section makes no distinction between
cooperatives and corporations in defining its
coverages, and a.cooperative engaged in process-
ing dried fruits and employing 1500 employees
would not come under the exemption granted to
farmers. Baiocchi v Ewing (1949, DC Cal) 87 F
Supp 520.
Rules of administrative agencies concerning
what industries are engaged in agricultural labor,
within the purview of unemployment insurance
acts, are not binding upon the courts. Park.
Floral Co. v Industrial Com. (1939) 104 Colo
350, 91 P2d 492; Oak Woods Cemetery Asso. v'
Murphy (1943) 383 111301, 50 NE2d 582.
Annotations.. :
7. --Charitable organizatlons
ment features as. an incidental function to assist
it in promoting and expanding its educational
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5
RANCE BENEFITS
t. Oklahoma State Fair & Exposition v
:942, DC Okla) 44 F Supp, 630.
..typist doing non-covered employment
ubsec. (a)(8)(B) of this section was not
the equal. protection of the law. Wieszc-
Secretary of Health, Education and Wel-
)71, DC Conn) 335 F Supp 1146.
42 USCS ? 411
A nonprofit public cemetery company is not
entitled to exemption for social security taxes as
a charitable corporation. Lexington Cemetery
Co., Inc. v Commonwealth ex rel. Unemploy-
ment Compensation Com. (1944) 297 Ky 851,
)a. [Transferred]:;:::
HISTORY; ANCILLARY LAWS AND DIRECTIVES
,is section (Act Aug. 29, 1935, c. 812, ? 17 [15], 49 Stat. 974; June 24,
37, c. 382, Part I, ? 1, 50 Stat. 317)' was transferred and appears as 45
iCS ? 228q.
1. Self-employment
the purposes of this title-
Jet earnings from self-employment. The term "net earnings from self-
.oyment" means the gross income, as computed under chapter 1 of the
-nal Revenue Code [of 1939], derived by an individual from any trade
?usiness carried on by such individual, less the deductions allowed
:r such chapter which are attributable to such trade? or business, plus
Jistributive share (whether or not distributed) of the ordinary net,
.ne or loss, as computed under section 183 of such code [of 1939],
any trade or business carried on by a partnership of which he is 'a
ber; except that in computing such gross income and deductions and
distributive share of partnership ordinary net income or loss-
There shall be excluded rentals from real estate and from personal
operty leased with the real estate (including such rentals paid in crop
ares), together with the deductions attributable thereto, unless such
ntals are received in the course of a trade or business as a real estate
aler; except that the preceding provisions of this paragraph shall not
ply to any income derived by the owner or tenant of land if (A) such
:ome is derived under an arrangement, between the owner or tenant
d another individual, which provides that such other individual shall
oduce agricultural or horticultural commodities (including livestock,
cs, poultry, and fur-bearing animals and wildlife) on such land, and
at there shall be material participation by the owner or tenant in the
oduction or the management of the production of such agricultural or
.rticultural commodities, and (B) there is material participation by the
iner or tenant with respect to any such agricultural or horticultural
mmodity;
> There shall be excluded dividends on any share of stock, and interest
any bond, debenture, note, or certificate, or other evidence of
Jebtedness, issued with interest coupons or in registered form by any
rporation (including one issued by a government or political subdivi-
,n thereof), unless such dividends and interest (other than interest
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010024-5