26 U.S.C. § 3309 : US Code - Section 3309: State law coverage of services performed for nonprofit organizations or governmental entities

Search 26 U.S.C. § 3309 : US Code - Section 3309: State law coverage of services performed for nonprofit organizations or governmental entities

(a) State law requirements
For purposes of section 3304(a)(6) -
(1) except as otherwise provided in subsections (b) and (c),
the services to which this paragraph applies are -
(A) service excluded from the term "employment" solely by
reason of paragraph (8) of section 3306(c), and
(B) service excluded from the term "employment" solely by
reason of paragraph (7) of section 3306(c); and
(2) the State law shall provide that a governmental entity,
including an Indian tribe, or any other organization (or group of
governmental entities or other organizations) which, but for the
requirements of this paragraph, would be liable for contributions
with respect to service to which paragraph (1) applies may elect,
for such minimum period and at such time as may be provided by
State law, to pay (in lieu of such contributions) into the State
unemployment fund amounts equal to the amounts of compensation
attributable under the State law to such service. The State law
may provide safeguards to ensure that governmental entities or
other organizations so electing will make the payments required
under such elections.
(b) Section not to apply to certain service
This section shall not apply to service performed -
(1) in the employ of (A) a church or convention or association
of churches, (B) an organization which is operated primarily for
religious purposes and which is operated, supervised, controlled,
or principally supported by a church or convention or association
of churches, or (C) an elementary or secondary school which is
operated primarily for religious purposes, which is described in
section 501(c)(3), and which is exempt from tax under section
501(a);
(2) 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;
(3) in the employ of a governmental entity referred to in
paragraph (7) of section 3306(c), if such service is performed by
an individual in the exercise of his duties -
(A) as an elected official;
(B) as a member of a legislative body, or a member of the
judiciary, of a State or political subdivision thereof, or of
an Indian tribe;
(C) as a member of the State National Guard or Air National
Guard;
(D) as an employee serving on a temporary basis in case of
fire, storm, snow, earthquake, flood, or similar emergency;
(E) in a position which, under or pursuant to the State or
tribal law, is designated as (i) a major nontenured
policymaking or advisory position, or (ii) a policymaking or
advisory position the performance of the duties of which
ordinarily does not require more than 8 hours per week; or
(F) as an election official or election worker if the amount
of remuneration received by the individual during the calendar
year for services as an election official or election worker is
less than $1,000;
(4) in a facility conducted for the purpose of carrying out a
program of -
(A) rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury, or
(B) providing remunerative work for individuals who because
of their impaired physical or mental capacity cannot be readily
absorbed in the competitive labor market,
by an individual receiving such rehabilitation or remunerative
work;
(5) as part of an unemployment work-relief or work-training
program assisted or financed in whole or in part by any Federal
agency or an agency of a State or political subdivision thereof
or of an Indian tribe, by an individual receiving such work
relief or work training; and
(6) by an inmate of a custodial or penal institution.
(c) Nonprofit organizations must employ 4 or more
This section shall not apply to service performed during any
calendar year in the employ of any organization unless on each of
some 20 days during such calendar year or the preceding calendar
year, each day being in a different calendar week, the total number
of individuals who were employed by such organization in employment
(determined without regard to section 3306(c)(8) and by excluding
service to which this section does not apply by reason of
subsection (b)) for some portion of the day (whether or not at the
same moment of time) was 4 or more.
(d) Election by Indian tribe
The State law shall provide that an Indian tribe may make
contributions for employment as if the employment is within the
meaning of section 3306 or make payments in lieu of contributions
under this section, and shall provide that an Indian tribe may make
separate elections for itself and each subdivision, subsidiary, or
business enterprise wholly owned by such Indian tribe. State law
may require a tribe to post a payment bond or take other reasonable
measures to assure the making of payments in lieu of contributions
under this section. Notwithstanding the requirements of section
3306(a)(6), if, within 90 days of having received a notice of
delinquency, a tribe fails to make contributions, payments in lieu
of contributions, or payment of penalties or interest (at amounts
or rates comparable to those applied to all other employers covered
under the State law) assessed with respect to such failure, or if
the tribe fails to post a required payment bond, then service for
the tribe shall not be excepted from employment under section
3306(c)(7) until any such failure is corrected. This subsection
shall apply to an Indian tribe within the meaning of section 4(e)
of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b(e)).