26-U.S.C.-3127

26-U.S.C.-3127

§3127 – Exemption For Employers and Their Employees Where Both Are Members of Religious Faiths Opposed to Participation In Social Security Act Programs

Pathway

Title 26 > Subtitle C > Chapter 21 > Subchapter C > Section 3127

Details

  • Reference: Section 3127
  • Legend: §3127 – Exemption For Employers and Their Employees Where Both Are Members of Religious Faiths Opposed to Participation In Social Security Act Programs
  • USCode Year: 2013

Provision Content

(a) In general

Notwithstanding any other provision of this chapter (and under regulations prescribed to carry out this section), in any case where—

(1) an employer (or, if the employer is a partnership, each partner therein) is a member of a recognized religious sect or division thereof described in section 1402(g)(1) and an adherent of established tenets or teachings of such sect or division as described in such section, and has filed and had approved under subsection (b) an application (in such form and manner, and with such official, as may be prescribed by such regulations) for an exemption from the taxes imposed by section 3111, and

(2) an employee of such employer who is also a member of such a religious sect or division and an adherent of its established tenets or teachings has filed and had approved under subsection (b) an identical application for exemption from the taxes imposed by section 3101,

such employer shall be exempt from the taxes imposed by section 3111 with respect to wages paid to each of the employees thereof who meets the requirements of paragraph (2) and each such employee shall be exempt from the taxes imposed by section 3101 with respect to such wages paid to him by such employer.

(b) Approval of application

An application for exemption filed by an employer (or a partner) under subsection (a)(1) or by an employee under subsection (a)(2) shall be approved only if—

(1) such application contains or is accompanied by the evidence described in section 1402(g)(1)(A) and a waiver described in section 1402(g)(1)(B),

(2) the Commissioner of Social Security makes the findings (with respect to such sect or division) described in section 1402(g)(1)(C), (D), and (E), and

(3) no benefit or other payment referred to in section 1402(g)(1)(B) became payable (or, but for section 203 or 222(b)  of the Social Security Act, would have become payable) to the individual filing the application at or before the time of such filing.

(c) Effective period of exemption

An exemption granted under this section to any employer with respect to wages paid to any of the employees thereof, or granted to any such employee, shall apply with respect to wages paid by such employer during the period—

(1) commencing with the first day of the first calendar quarter, after the quarter in which such application is filed, throughout which such employer (or, if the employer is a partnership, each partner therein) or employee meets the applicable requirements specified in subsections (a) and (b), and

(2) ending with the last day of the calendar quarter preceding the first calendar quarter thereafter in which (A) such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet the applicable requirements of subsection (a), or (B) the sect or division thereof of which such employer (or, if the employer is a partnership, any partner therein) or employee is a member is found by the Commissioner of Social Security to have ceased to meet the requirements of subsection (b)(2).

(Added Pub. L. 100–647, title VIII, §8007(a)(1), Nov. 10, 1988, 102 Stat. 3781; amended Pub. L. 101–239, title X, §10204(b)(1), Dec. 19, 1989, 103 Stat. 2474; Pub. L. 103–296, title I, §108(h)(3), Aug. 15, 1994, 108 Stat. 1487.)

References in Text

Sections 203 and 222(b) of the Social Security Act, referred to in subsec. (b)(3), are classified to sections 403 and 422(b), respectively, of Title 42, The Public Health and Welfare. Section 222(b) was repealed by Pub. L. 106–170, title I, §101(b)(1)(C), Dec. 17, 1999, 113 Stat. 1873.

Prior Provisions

A prior section 3127 was renumbered section 3128 of this title.

Amendments

1994—Subsecs. (b)(2), (c)(2). Pub. L. 103–296 substituted Commissioner of Social Security for Secretary of Health and Human Services.

1989—Subsec. (a). Pub. L. 101–239, §10204(b)(1)(B), substituted the employees thereof for his employees in concluding provisions.

Subsec. (a)(1). Pub. L. 101–239, §10204(b)(1)(A), inserted (or, if the employer is a partnership, each partner therein) after an employer.

Subsec. (b). Pub. L. 101–239, §10204(b)(1)(C), inserted (or a partner) after an employer in introductory provisions.

Subsec. (c). Pub. L. 101–239, §10204(b)(1)(D), substituted the employees thereof for his employees in introductory provisions.

Subsec. (c)(1). Pub. L. 101–239, §10204(b)(1)(E), inserted (or, if the employer is a partnership, each partner therein).

Subsec. (c)(2). Pub. L. 101–239, §10204(b)(1)(F), substituted such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet for such employer or the employee involved ceases to meet in cl. (A) and inserted (or, if the employer is a partnership, any partner therein) after such employer in cl. (B).

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare.

Effective Date of 1989 Amendment

Pub. L. 101–239, title X, §10204(b)(2), Dec. 19, 1989, 103 Stat. 2474, provided that: The amendments made by this subsection [amending this section] shall be effective as if they were included in the amendments made by section 8007(a)(1) of the Technical and Miscellaneous Revenue Act of 1988 (102 Stat. 3781) [Pub. L. 100–647].

Effective Date

Section applicable to wages paid after Dec. 31, 1988, see section 8007(d) of Pub. L. 100–647, set out as an Effective Date of 1988 Amendment note under section 1402 of this title.

U.S. Encyclopedia of Law Coverage

26-U.S.C.-3123 in the Legal Encyclopedia: Taxes

In this entry about 26-U.S.C.-3123, find legal reference material, bibliographies and premiere content related to taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States taxes-specific issues, written by authorities in the field.

26-U.S.C.-3122 in the Legal Encyclopedia: Employment Taxes

In this entry about 26-U.S.C.-3122, find legal reference material, bibliographies and premiere content related to employment taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States employment taxes-specific issues, written by authorities in the field.

Subchapter A – in the Legal Encyclopedia: Employment

In this entry about Subchapter A – , find legal reference material, bibliographies and premiere content related to employment in the American Encyclopedia of Law, presenting a comprehensive view of the United States employment-specific issues, written by authorities in the field.

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