26 U.S.C. § 3306 : US Code - Section 3306: Definitions

Search 26 U.S.C. § 3306 : US Code - Section 3306: Definitions

(a) Employer
For purposes of this chapter -
(1) In general
The term "employer" means, with respect to any calendar year,
any person who -
(A) during any calendar quarter in the calendar year or the
preceding calendar year paid wages of $1,500 or more, or
(B) on each of some 20 days during the calendar year or
during the preceding calendar year, each day being in a
different calendar week, employed at least one individual in
employment for some portion of the day.
For purposes of this paragraph, there shall not be taken into
account any wages paid to, or employment of, an employee
performing domestic services referred to in paragraph (3).
(2) Agricultural labor
In the case of agricultural labor, the term "employer" means,
with respect to any calendar year, any person who -
(A) during any calendar quarter in the calendar year or the
preceding calendar year paid wages of $20,000 or more for
agricultural labor, or
(B) on each of some 20 days during the calendar year or
during the preceding calendar year, each day being in a
different calendar week, employed at least 10 individuals in
employment in agricultural labor for some portion of the day.
(3) Domestic service
In the case of domestic service in a private home, local
college club, or local chapter of a college fraternity or
sorority, the term "employer" means, with respect to any calendar
year, any person who during any calendar quarter in the calendar
year or the preceding calendar year paid wages in cash of $1,000
or more for such service.
(4) Special rule
A person treated as an employer under paragraph (3) shall not
be treated as an employer with respect to wages paid for any
service other than domestic service referred to in paragraph (3)
unless such person is treated as an employer under paragraph (1)
or (2) with respect to such other service.
(b) Wages
For purposes of this chapter, the term "wages" means all
remuneration for employment, including the cash value of all
remuneration (including benefits) paid in any medium other than
cash; except that such term shall not include -
(1) that part of the remuneration which, after remuneration
(other than remuneration referred to in the succeeding paragraphs
of this subsection) equal to $7,000 with respect to employment
has been paid to an individual by an employer during any calendar
year, is paid to such individual by such employer during such
calendar year. If an employer (hereinafter referred to as
successor employer) during any calendar year acquires
substantially all the property used in a trade or business of
another employer (hereinafter referred to as a predecessor), or
used in a separate unit of a trade or business of a predecessor,
and immediately after the acquisition employs in his trade or
business an individual who immediately prior to the acquisition
was employed in the trade or business of such predecessor, then,
for the purpose of determining whether the successor employer has
paid remuneration (other than remuneration referred to in the
succeeding paragraphs of this subsection) with respect to
employment equal to $7,000 to such individual during such
calendar year, any remuneration (other than remuneration referred
to in the succeeding paragraphs of this subsection) with respect
to employment paid (or considered under this paragraph as having
been paid) to such individual by such predecessor during such
calendar year and prior to such acquisition shall be considered
as having been paid by such successor employer;
(2) the amount of any payment (including any amount paid by an
employer for insurance or annuities, or into a fund, to provide
for any such payment) made to, or on behalf of, an employee or
any of his dependents under a plan or system established by an
employer which makes provision for his employees generally (or
for his employees generally and their dependents) or for a class
or classes of his employees (or for a class or classes of his
employees and their dependents), on account of -
(A) sickness or accident disability (but, in the case of
payments made to an employee or any of his dependents, this
subparagraph shall exclude from the term "wages" only payments
which are received under a workmen's compensation law), or
(B) medical or hospitalization expenses in connection with
sickness or accident disability, or
(C) death;
[(3) Repealed. Pub. L. 98-21, title III, Sec. 324(b)(3)(B),
Apr. 20, 1983, 97 Stat. 124]
(4) any payment on account of sickness or accident disability,
or medical or hospitalization expenses in connection with
sickness or accident disability, made by an employer to, or on
behalf of, an employee after the expiration of 6 calendar months
following the last calendar month in which the employee worked
for such employer;
(5) any payment made to, or on behalf of, an employee or his
beneficiary -
(A) from or to a trust described in section 401(a) which is
exempt from tax under section 501(a) at the time of such
payment unless such payment is made to an employee of the trust
as remuneration for services rendered as such employee and not
as a beneficiary of the trust, or
(B) under or to an annuity plan which, at the time of such
payment, is a plan described in section 403(a),
(C) under a simplified employee pension (as defined in
section 408(k)(1)), other than any contributions described in
section 408(k)(6),
(D) under or to an annuity contract described in section
403(b), other than a payment for the purchase of such contract
which is made by reason of a salary reduction agreement
(whether evidenced by a written instrument or otherwise),
(E) under or to an exempt governmental deferred compensation
plan (as defined in section 3121(v)(3)),
(F) to supplement pension benefits under a plan or trust
described in any of the foregoing provisions of this paragraph
to take into account some portion or all of the increase in the
cost of living (as determined by the Secretary of Labor) since
retirement but only if such supplemental payments are under a
plan which is treated as a welfare plan under section
3(2)(B)(ii) of the Employee Retirement Income Security Act of
1974; (!1)
(G) under a cafeteria plan (within the meaning of section
125) if such payment would not be treated as wages without
regard to such plan and it is reasonable to believe that (if
section 125 applied for purposes of this section) section 125
would not treat any wages as constructively received, or
(H) under an arrangement to which section 408(p) applies,
other than any elective contributions under paragraph (2)(A)(i)
thereof,(!2)
(6) the payment by an employer (without deduction from the
remuneration of the employee) -
(A) of the tax imposed upon an employee under section 3101,
or
(B) of any payment required from an employee under a State
unemployment compensation law,
with respect to remuneration paid to an employee for domestic
service in a private home of the employer or for agricultural
labor;
(7) remuneration paid in any medium other than cash to an
employee for service not in the course of the employer's trade or
business;
[(8) Repealed. Pub. L. 98-21, title III, Sec. 324(b)(3)(B),
Apr. 20, 1983, 97 Stat. 124]
(9) remuneration paid to or on behalf of an employee if (and to
the extent that) at the time of the payment of such remuneration
it is reasonable to believe that a corresponding deduction is
allowable under section 217 (determined without regard to section
274(n));
(10) any payment or series of payments by an employer to an
employee or any of his dependents which is paid -
(A) upon or after the termination of an employee's employment
relationship because of (i) death, or (ii) retirement for
disability, and
(B) under a plan established by the employer which makes
provision for his employees generally or a class or classes of
his employees (or for such employees or class or classes of
employees and their dependents),
other than any such payment or series of payments which would
have been paid if the employee's employment relationship had not
been so terminated;
(11) remuneration for agricultural labor paid in any medium
other than cash;
(12) any contribution, payment, or service, provided by an
employer which may be excluded from the gross income of an
employee, his spouse, or his dependents, under the provisions of
section 120 (relating to amounts received under qualified group
legal services plans);
(13) any payment made, or benefit furnished, to or for the
benefit of an employee if at the time of such payment or such
furnishing it is reasonable to believe that the employee will be
able to exclude such payment or benefit from income under section
127, 129, 134(b)(4), or 134(b)(5);
(14) the value of any meals or lodging furnished by or on
behalf of the employer if at the time of such furnishing it is
reasonable to believe that the employee will be able to exclude
such items from income under section 119;
(15) any payment made by an employer to a survivor or the
estate of a former employee after the calendar year in which such
employee died;
(16) any benefit provided to or on behalf of an employee if at
the time such benefit is provided it is reasonable to believe
that the employee will be able to exclude such benefit from
income under section 74(c), 108(f)(4), 117, or 132;
(17) any payment made to or for the benefit of an employee if
at the time of such payment it is reasonable to believe that the
employee will be able to exclude such payment from income under
section 106(b);
(18) any payment made to or for the benefit of an employee if
at the time of such payment it is reasonable to believe that the
employee will be able to exclude such payment from income under
section 106(d); or
(19) remuneration on account of -
(A) a transfer of a share of stock to any individual pursuant
to an exercise of an incentive stock option (as defined in
section 422(b)) or under an employee stock purchase plan (as
defined in section 423(b)), or
(B) any disposition by the individual of such stock.
Except as otherwise provided in regulations prescribed by the
Secretary, any third party which makes a payment included in wages
solely by reason of the parenthetical matter contained in
subparagraph (A) of paragraph (2) shall be treated for purposes of
this chapter and chapter 22 as the employer with respect to such
wages. Nothing in the regulations prescribed for purposes of
chapter 24 (relating to income tax withholding) which provides an
exclusion from "wages" as used in such chapter shall be construed
to require a similar exclusion from "wages" in the regulations
prescribed for purposes of this chapter.
(c) Employment
For purposes of this chapter, the term "employment" means any
service performed prior to 1955, which was employment for purposes
of subchapter C of chapter 9 of the Internal Revenue Code of 1939
under the law applicable to the period in which such service was
performed, and (A) any service, of whatever nature, performed after
1954 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, and (B) any service, of whatever nature, performed after
1971 outside the United States (except in a contiguous country with
which the United States has an agreement relating to unemployment
compensation) by a citizen of the United States as an employee of
an American employer (as defined in subsection (j)(3)), except -
(1) agricultural labor (as defined in subsection (k)) unless -
(A) such labor is performed for a person who -
(i) during any calendar quarter in the calendar year or the
preceding calendar year paid remuneration in cash of $20,000
or more to individuals employed in agricultural labor
(including labor performed by an alien referred to in
subparagraph (B)), or
(ii) on each of some 20 days during the calendar year or
the preceding calendar year, each day being in a different
calendar week, employed in agricultural labor (including
labor performed by an alien referred to in subparagraph (B))
for some portion of the day (whether or not at the same
moment of time) 10 or more individuals; and
(B) such labor is not agricultural labor performed by an
individual who is an alien admitted to the United States to
perform agricultural labor pursuant to sections 214(c) and
101(a)(15)(H) of the Immigration and Nationality Act;
(2) domestic service in a private home, local college club, or
local chapter of a college fraternity or sorority unless
performed for a person who paid cash remuneration of $1,000 or
more to individuals employed in such domestic service in any
calendar quarter in the calendar year or the preceding calendar
year;
(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 purposes
of this paragraph, an individual shall be deemed to be regularly
employed by an employer during a calendar quarter only if -
(A) on each of some 24 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 subparagraph (A)) by such employer in the performance of
such service during the preceding calendar quarter;
(4) service performed on or in connection with a vessel or
aircraft not an American vessel or American aircraft, if the
employee is employed on and in connection with such vessel or
aircraft when outside the United States;
(5) service performed by an individual in the employ of his
son, daughter, or spouse, and service performed by a child under
the age of 21 in the employ of his father or mother;
(6) service performed in the employ of the United States
Government or of an instrumentality of the United States which is
-
(A) wholly or partially owned by the United States, or
(B) exempt from the tax imposed by section 3301 by virtue of
any provision of law which specifically refers to such section
(or the corresponding section of prior law) in granting such
exemption;
(7) service performed in the employ of a State, or any
political subdivision thereof, or in the employ of an Indian
tribe, or any instrumentality of any one or more of the foregoing
which is wholly owned by one or more States or political
subdivisions or Indian tribes; and any service performed in the
employ of any instrumentality of one or more States or political
subdivisions to the extent that the instrumentality is, with
respect to such service, immune under the Constitution of the
United States from the tax imposed by section 3301;
(8) service performed in the employ of a religious, charitable,
educational, or other organization described in section 501(c)(3)
which is exempt from income tax under section 501(a);
(9) service performed by an individual as an employee or
employee representative as defined in section 1 of the Railroad
Unemployment Insurance Act (45 U.S.C. 351);
(10)(A) service performed in any calendar quarter in the employ
of any organization exempt from income tax under section 501(a)
(other than an organization described in section 401(a)) or under
section 521, if the remuneration for such service is less than
$50, or
(B) service performed in the employ of a school, college, or
university, if such service is performed (i) by a student who is
enrolled and is regularly attending classes at such school,
college, or university, or (ii) by the spouse of such a student,
if such spouse is advised, at the time such spouse commences to
perform such service, that (I) the employment of such spouse to
perform such service is provided under a program to provide
financial assistance to such student by such school, college, or
university, and (II) such employment will not be covered by any
program of unemployment insurance, or
(C) service performed by an individual who is enrolled at a
nonprofit or public educational institution which normally
maintains a regular faculty and curriculum and normally has a
regularly organized body of students in attendance at the place
where its educational activities are carried on as a student in a
full-time program, taken for credit at such institution, which
combines academic instruction with work experience, if such
service is an integral part of such program, and such institution
has so certified to the employer, except that this subparagraph
shall not apply to service performed in a program established for
or on behalf of an employer or group of employers, or
(D) service performed in the employ of a hospital, if such
service is performed by a patient of such hospital;
(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 instrumentality 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; and service
performed as an intern in the employ of a hospital by an
individual who has completed a 4 years' course in a medical
school chartered or approved pursuant to State law;
(14) service performed by an individual for a person as an
insurance agent or as an insurance solicitor, if all such service
performed by such individual for such person is performed for
remuneration solely by way of commission;
(15)(A) service performed by an individual under the age of 18
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 arrangement under which the newspapers or magazines are to be
sold by him at a fixed price, his compensation being based on the
retention of the excess of such price over the amount at which
the newspapers or magazines are charged to him, 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;
(16) service performed in the employ of an international
organization;
(17) 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 performed on or in connection with a vessel of
more than 10 net tons (determined in the manner provided for
determining the register tonnage of merchant vessels under the
laws of the United States);
(18) service described in section 3121(b)(20);
(19) Service (!3) 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), (J), (M), or (Q)
of section 101(a)(15) of the Immigration and Nationality Act, as
amended (8 U.S.C. 1101(a)(15)(F), (J), (M), or (Q)), and which is
performed to carry out the purpose specified in subparagraph (F),
(J), (M), or (Q), as the case may be;
(20) service performed by a full time student (as defined in
subsection (q)) in the employ of an organized camp -
(A) if such camp -
(i) did not operate for more than 7 months in the calendar
year and did not operate for more than 7 months in the
preceding calendar year, or
(ii) had average gross receipts for any 6 months in the
preceding calendar year which were not more than 33 1/3
percent of its average gross receipts for the other 6 months
in the preceding calendar year; and
(B) if such full time student performed services in the
employ of such camp for less than 13 calendar weeks in such
calendar year; or
(21) service performed by a person committed to a penal
institution.
(d) Included and excluded service
For purposes of this chapter, 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 employment. As used in this
subsection, the term "pay period" means a period (of not more than
31 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 subsection (c)(9).
(e) State agency
For purposes of this chapter, the term "State agency" means any
State officer, board, or other authority, designated under a State
law to administer the unemployment fund in such State.
(f) Unemployment fund
For purposes of this chapter, the term "unemployment fund" means
a special fund, established under a State law and administered by a
State agency, for the payment of compensation. Any sums standing to
the account of the State agency in the Unemployment Trust Fund
established by section 904 of the Social Security Act, as amended
(42 U.S.C. 1104), shall be deemed to be a part of the unemployment
fund of the State, and no sums paid out of the Unemployment Trust
Fund to such State agency shall cease to be a part of the
unemployment fund of the State until expended by such State agency.
An unemployment fund shall be deemed to be maintained during a
taxable year only if throughout such year, or such portion of the
year as the unemployment fund was in existence, no part of the
moneys of such fund was expended for any purpose other than the
payment of compensation (exclusive of expenses of administration)
and for refunds of sums erroneously paid into such fund and refunds
paid in accordance with the provisions of section 3305(b); except
that -
(1) an amount equal to the amount of employee payments into the
unemployment fund of a State may be used in the payment of cash
benefits to individuals with respect to their disability,
exclusive of expenses of administration;
(2) the amounts specified by section 903(c)(2) or 903(d)(4) of
the Social Security Act may, subject to the conditions prescribed
in such section, be used for expenses incurred by the State for
administration of its unemployment compensation law and public
employment offices,(!4)
(3) nothing in this subsection shall be construed to prohibit
deducting any amount from unemployment compensation otherwise
payable to an individual and using the amount so deducted to pay
for health insurance, or the withholding of Federal, State, or
local individual income tax, if the individual elected to have
such deduction made and such deduction was made under a program
approved by the Secretary of Labor;
(4) amounts may be deducted from unemployment benefits and used
to repay overpayments as provided in section 303(g) of the Social
Security Act;
(5) (!5) amounts may be withdrawn for the payment of short-time
compensation under a plan approved by the Secretary of Labor; and
(5) (!5) amounts may be withdrawn for the payment of allowances
under a self-employment assistance program (as defined in
subsection (t)).
(g) Contributions
For purposes of this chapter, the term "contributions" means
payments required by a State law to be made into an unemployment
fund by any person on account of having individuals in his employ,
to the extent that such payments are made by him without being
deducted or deductible from the remuneration of individuals in his
employ.
(h) Compensation
For purposes of this chapter, the term "compensation" means cash
benefits payable to individuals with respect to their unemployment.
(i) Employee
For purposes of this chapter, the term "employee" has the meaning
assigned to such term by section 3121(d), except that paragraph (4)
and subparagraphs (B) and (C) of paragraph (3) shall not apply.
(j) State, United States, and American employer
For purposes of this chapter -
(1) State
The term "State" includes the District of Columbia, the
Commonwealth of Puerto Rico, and the Virgin Islands.
(2) United States
The term "United States" when used in a geographical sense
includes the States, the District of Columbia, the Commonwealth
of Puerto Rico, and the Virgin Islands.
(3) American employer
The term "American employer" means a person who is -
(A) an individual who is a resident of the United States,
(B) a partnership, if two-thirds or more of the partners are
residents of the United States,
(C) a trust, if all of the trustees are residents of the
United States, or
(D) a corporation organized under the laws of the United
States or of any State.
An individual who is a citizen of the Commonwealth of Puerto Rico
or the Virgin Islands (but not otherwise a citizen of the United
States) shall be considered, for purposes of this section, as a
citizen of the United States.
(k) Agricultural labor
For purposes of this chapter, the term "agricultural labor" has
the meaning assigned to such term by subsection (g) of section
3121, except that for purposes of this chapter subparagraph (B) of
paragraph (4) of such subsection (g) shall be treated as reading:
"(B) in the employ of a group of operators of farms (or a
cooperative organization of which such operators are members)
in the performance of service described in subparagraph (A),
but only if such operators produced more than one-half of the
commodity with respect to which such service is performed;".
[(l) Repealed. Sept. 1, 1954, ch. 1212, Sec. 4(c), 68 Stat. 1135]
(m) American vessel and aircraft
For purposes of this chapter, 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 residents of the United States or
corporations organized under the laws of the United States or of
any State; and the term "American aircraft" means an aircraft
registered under the laws of the United States.
(n) Vessels operated by general agents of United States
Notwithstanding the provisions of subsection (c)(6), service
performed by officers and members of the crew of a vessel which
would otherwise be included as employment under subsection (c)
shall not be excluded by reason of the fact that it is performed on
or in connection with an American vessel -
(1) owned by or bareboat chartered to the United States and
(2) whose business is conducted by a general agent of the
Secretary of Commerce.
For purposes of this chapter, each such general agent shall be
considered a legal entity in his capacity as such general agent,
separate and distinct from his identity as a person employing
individuals on his own account, and the officers and members of the
crew of such an American vessel whose business is conducted by a
general agent of the Secretary of Commerce shall be deemed to be
performing services for such general agent rather than the United
States. Each such general agent who in his capacity as such is an
employer within the meaning of subsection (a) shall be subject to
all the requirements imposed upon an employer under this chapter
with respect to service which constitutes employment by reason of
this subsection.
(o) Special rule in case of certain agricultural workers
(1) Crew leaders who are registered or provide specialized
agricultural labor
For purposes of this chapter, any individual who is a member of
a crew furnished by a crew leader to perform agricultural labor
for any other person shall be treated as an employee of such crew
leader -
(A) if -
(i) such crew leader holds a valid certificate of
registration under the Migrant and Seasonal Agricultural
Worker Protection Act; or
(ii) substantially all the members of such crew operate or
maintain tractors, mechanized harvesting or crop-dusting
equipment, or any other mechanized equipment, which is
provided by such crew leader; and
(B) if such individual is not an employee of such other
person within the meaning of subsection (i).
(2) Other crew leaders
For purposes of this chapter, in the case of any individual who
is furnished by a crew leader to perform agricultural labor for
any other person and who is not treated as an employee of such
crew leader under paragraph (1) -
(A) such other person and not the crew leader shall be
treated as the employer of such individual; and
(B) such other person shall be treated as having paid cash
remuneration to such individual in an amount equal to the
amount of cash remuneration paid to such individual by the crew
leader (either on his behalf or on behalf of such other person)
for the agricultural labor performed for such other person.
(3) Crew leader
For purposes of this subsection, the term "crew leader" means
an individual who -
(A) furnishes individuals to perform agricultural labor for
any other person,
(B) pays (either on his behalf or on behalf of such other
person) the individuals so furnished by him for the
agricultural labor performed by them, and
(C) has not entered into a written agreement with such other
person under which such individual is designated as an employee
of such other person.
(p) Concurrent employment by two or more employers
For purposes of sections 3301, 3302, and 3306(b)(1), if two or
more related corporations concurrently employ the same individual
and compensate such individual through a common paymaster which is
one of such corporations, each such corporation shall be considered
to have paid as remuneration to such individual only the amounts
actually disbursed by it to such individual and shall not be
considered to have paid as remuneration to such individual amounts
actually disbursed to such individual by another of such
corporations.
(q) Full time student
For purposes of subsection (c)(20), an individual shall be
treated as a full time student for any period -
(1) during which the individual is enrolled as a full time
student at an educational institution, or
(2) which is between academic years or terms if -
(A) the individual was enrolled as a full time student at an
educational institution for the immediately preceding academic
year or term, and
(B) there is a reasonable assurance that the individual will
be so enrolled for the immediately succeeding academic year or
term after the period described in subparagraph (A).
(r) Treatment of certain deferred compensation and salary reduction
arrangements
(1) Certain employer contributions treated as wages
Nothing in any paragraph of subsection (b) (other than
paragraph (1)) shall exclude from the term "wages" -
(A) any employer contribution under a qualified cash or
deferred arrangement (as defined in section 401(k)) to the
extent not included in gross income by reason of section
402(e)(3), or
(B) any amount treated as an employer contribution under
section 414(h)(2) where the pickup referred to in such section
is pursuant to a salary reduction agreement (whether evidenced
by a written instrument or otherwise).
(2) Treatment of certain nonqualified deferred compensation plans
(A) In general
Any amount deferred under a nonqualified deferred
compensation plan shall be taken into account for purposes of
this chapter as of the later of -
(i) when the services are performed, or
(ii) when there is no substantial risk of forfeiture of the
rights to such amount.
(B) Taxed only once
Any amount taken into account as wages by reason of
subparagraph (A) (and the income attributable thereto) shall
not thereafter be treated as wages for purposes of this
chapter.
(C) Nonqualified deferred compensation plan
For purposes of this paragraph, the term "nonqualified
deferred compensation plan" means any plan or other arrangement
for deferral of compensation other than a plan described in
subsection (b)(5).
(s) Tips treated as wages
For purposes of this chapter, the term "wages" includes tips
which are -
(1) received while performing services which constitute
employment, and
(2) included in a written statement furnished to the employer
pursuant to section 6053(a).
(t) Self-employment assistance program
For the purposes of this chapter, the term "self-employment
assistance program" means a program under which -
(1) individuals who meet the requirements described in
paragraph (3) are eligible to receive an allowance in lieu of
regular unemployment compensation under the State law for the
purpose of assisting such individuals in establishing a business
and becoming self-employed;
(2) the allowance payable to individuals pursuant to paragraph
(1) is payable in the same amount, at the same interval, on the
same terms, and subject to the same conditions, as regular
unemployment compensation under the State law, except that -
(A) State requirements relating to availability for work,
active search for work, and refusal to accept work are not
applicable to such individuals;
(B) State requirements relating to disqualifying income are
not applicable to income earned from self-employment by such
individuals; and
(C) such individuals are considered to be unemployed for the
purposes of Federal and State laws applicable to unemployment
compensation,
as long as such individuals meet the requirements applicable
under this subsection;
(3) individuals may receive the allowance described in
paragraph (1) if such individuals -
(A) are eligible to receive regular unemployment compensation
under the State law, or would be eligible to receive such
compensation except for the requirements described in
subparagraph (A) or (B) of paragraph (2);
(B) are identified pursuant to a State worker profiling
system as individuals likely to exhaust regular unemployment
compensation; and
(C) are participating in self-employment assistance
activities which -
(i) include entrepreneurial training, business counseling,
and technical assistance; and
(ii) are approved by the State agency; and
(D) are actively engaged on a full-time basis in activities
(which may include training) relating to the establishment of a
business and becoming self-employed;
(4) the aggregate number of individuals receiving the allowance
under the program does not at any time exceed 5 percent of the
number of individuals receiving regular unemployment compensation
under the State law at such time;
(5) the program does not result in any cost to the Unemployment
Trust Fund (established by section 904(a) of the Social Security
Act) in excess of the cost that would be incurred by such State
and charged to such Fund if the State had not participated in
such program; and
(6) the program meets such other requirements as the Secretary
of Labor determines to be appropriate.
(u) Indian tribe
For purposes of this chapter, the term "Indian tribe" has the
meaning given to such term by section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b(e)),
and includes any subdivision, subsidiary, or business enterprise
wholly owned by such an Indian tribe.