
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC409]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
  SUBCHAPTER II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE 
                                BENEFITS
 
Sec. 409. ``Wages'' defined


(a) In general

    For the purposes of this subchapter, the term ``wages'' means 
remuneration paid prior to 1951 which was wages for the purposes of this 
subchapter under the law applicable to the payment of such remuneration, 
and remuneration paid after 1950 for employment, including the cash 
value of all remuneration (including benefits) paid in any medium other 
than cash; except that, in the case of remuneration paid after 1950, 
such term shall not include--
        (1)(A) That part of remuneration which, after remuneration 
    (other than remuneration referred to in the succeeding subsections 
    of this section) equal to $3,600 with respect to employment has been 
    paid to an individual during any calendar year prior to 1955, is 
    paid to such individual during such calendar year;
        (B) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $4,200 with respect to employment has been paid to 
    an individual during any calendar year after 1954 and prior to 1959, 
    is paid to such individual during such calendar year;
        (C) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $4,800 with respect to employment has been paid to 
    an individual during any calendar year after 1958 and prior to 1966, 
    is paid to such individual during such calendar year;
        (D) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $6,600 with respect to employment has been paid to 
    an individual during any calendar year after 1965 and prior to 1968, 
    is paid to such individual during such calendar year;
        (E) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $7,800 with respect to employment has been paid to 
    an individual during any calendar year after 1967 and prior to 1972, 
    is paid to such individual during such calendar year;
        (F) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $9,000 with respect to employment has been paid to 
    an individual during any calendar year after 1971 and prior to 1973, 
    is paid to such individual during any such calendar year;
        (G) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $10,800 with respect to employment has been paid 
    to an individual during any calendar year after 1972 and prior to 
    1974, is paid to such individual during such calendar year;
        (H) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to $13,200 with respect to employment has been paid 
    to an individual during any calendar year after 1973 and prior to 
    1975, is paid to such individual during such calendar year;
        (I) That part of remuneration which, after remuneration (other 
    than remuneration referred to in the succeeding subsections of this 
    section) equal to the contribution and benefit base (determined 
    under section 430 of this title) with respect to employment has been 
    paid to an individual during any calendar year after 1974 with 
    respect to which such contribution and benefit base is effective, is 
    paid to such individual during such calendar year;
        (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 clause 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, except that this subsection 
    does not apply to a payment for group-term life insurance to the 
    extent that such payment is includible in the gross income of the 
    employee under the Internal Revenue Code of 1986;
        (3) 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 six calendar months following the 
    last calendar month in which the employee worked for such employer;
        (4) Any payment made to, or on behalf of, an employee or his 
    beneficiary (A) from or to a trust exempt from tax under section 
    165(a) of the Internal Revenue Code of 1939 at the time of such 
    payment or, in the case of a payment after 1954, under sections 401 
    and 501(a) of the Internal Revenue Code of 1954 or the Internal 
    Revenue Code of 1986, 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, meets the requirements of 
    section 165(a)(3), (4), (5), and (6) of the Internal Revenue Code of 
    1939 or, in the case of a payment after 1954 and prior to 1963, the 
    requirements of section 401(a)(3), (4), (5), and (6) of the Internal 
    Revenue Code of 1954, or (C) under or to an annuity plan which, at 
    the time of any such payment after 1962, is a plan described in 
    section 403(a) of the Internal Revenue Code of 1986, or (D) under or 
    to a bond purchase plan which, at the time of any such payment after 
    1962, is a qualified bond purchase plan described in section 405(a) 
    of the Internal Revenue Code of 1954 (as in effect before July 18, 
    1984), or (E) under or to an annuity contract described in section 
    403(b) of the Internal Revenue Code of 1986, 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), or (F) under or to an exempt governmental 
    deferred compensation plan (as defined in section 3121(v)(3) of such 
    Code), or (G) to supplement pension benefits under a plan or trust 
    described in any of the foregoing provisions of this subsection 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 [29 U.S.C. 1002(2)(B)(ii)], 
    or (H) under a simplified employee pension (as defined in section 
    408(k)(1) of such Code), other than any contributions described in 
    section 408(k)(6) of such Code, or (I) under a cafeteria plan 
    (within the meaning of section 125 of the Internal Revenue Code of 
    1986) 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 (J) under an arrangement to 
    which section 408(p) of such Code applies, other than any elective 
    contributions under paragraph (2)(A)(i) thereof; or (K) under a plan 
    described in section 457(e)(11)(A)(ii) of the Internal Revenue Code 
    of 1986 and maintained by an eligible employer (as defined in 
    section 457(e)(1) of such Code);
        (5) The payment by an employer (without deduction from the 
    remuneration of the employee)--
            (A) of the tax imposed upon an employee under section 3101 
        of the Internal Revenue Code of 1986, 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;
        (6)(A) Remuneration paid in any medium other than cash to an 
    employee for service not in the course of the employer's trade or 
    business or for domestic service in a private home of the employer;
        (B) Cash remuneration paid by an employer in any calendar year 
    to an employee for domestic service in a private home of the 
    employer (including domestic service described in section 410(f)(5) 
    of this title), if the cash remuneration paid in such year by the 
    employer to the employee for such service is less than the 
    applicable dollar threshold (as defined in section 3121(x) of the 
    Internal Revenue Code of 1986) for such year;
        (C) Cash remuneration paid by an employer in any calendar year 
    to an employee for service not in the course of the employer's trade 
    or business, if the cash remuneration paid in such year by the 
    employer to the employee for such service is less than $100. As used 
    in this paragraph, the term ``service not in the course of the 
    employer's trade or business'' does not include domestic service in 
    a private home of the employer and does not include service 
    described in section 410(f)(5) of this title;
        (7)(A) Remuneration paid in any medium other than cash for 
    agricultural labor;
        (B) Cash remuneration paid by an employer in any calendar year 
    to an employee for agricultural labor unless--
            (i) the cash remuneration paid in such year by the employer 
        to the employee for such labor is $150 or more, or
            (ii) the employer's expenditures for agricultural labor in 
        such year equal or exceed $2,500,

    except that clause (ii) shall not apply in determining whether 
    remuneration paid to an employee constitutes ``wages'' under this 
    section if such employee (I) is employed as a hand harvest laborer 
    and is paid on a piece rate basis in an operation which has been, 
    and is customarily and generally recognized as having been, paid on 
    a piece rate basis in the region of employment, (II) commutes daily 
    from his permanent residence to the farm on which he is so employed, 
    and (III) has been employed in agriculture less than 13 weeks during 
    the preceding calendar year;
        (8) Remuneration paid by an employer in any year to an employee 
    for service described in section 410(j)(3)(C) of this title 
    (relating to home workers), if the cash remuneration paid in such 
    year by the employer to the employee for such service is less than 
    $100;
        (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 of the Internal Revenue Code of 1986 (determined 
    without regard to section 274(n) of such Code);
        (10)(A) Tips paid in any medium other than cash;
        (B) Cash tips received by an employee in any calendar month in 
    the course of his employment by an employer unless the amount of 
    such cash tips is $20 or more;
        (11) 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 (A) \1\ death, or (B) \1\ 
        retirement for disability, and
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    \1\ So in original. Probably should be designated cls. (i) and (ii), 
respectively.
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            (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;
        (12) 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;
        (13) Any payment made by an employer to an employee, if at the 
    time such payment is made such employee is entitled to disability 
    insurance benefits under section 423(a) of this title and such 
    entitlement commenced prior to the calendar year in which such 
    payment is made, and if such employee did not perform any services 
    for such employer during the period for which such payment is made;
        (14)(A) Remuneration paid by an organization exempt from income 
    tax under section 501 of the Internal Revenue Code of 1986 in any 
    calendar year to an employee for service rendered in the employ of 
    such organization, if the remuneration paid in such year by the 
    organization to the employee for such service is less than $100;
        (B) 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 
    of the Internal Revenue Code of 1986 (relating to amounts received 
    under qualified group legal services plans);
        (15) 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 or 129 of the Internal Revenue Code of 1986;
        (16) 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 of the Internal Revenue Code of 1986;
        (17) 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), 117, or 132 of the Internal Revenue Code of 1986; or
        (18) Remuneration consisting of income excluded from taxation 
    under section 7873 of the Internal Revenue Code of 1986 (relating to 
    income derived by Indians from exercise of fishing rights).

(b) Regulations providing exclusions from term

    Nothing in the regulations prescribed for purposes of chapter 24 of 
the Internal Revenue Code of 1986 (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 subchapter.

(c) Individuals performing domestic services

    For purposes of this subchapter, in the case of domestic service 
described in subsection (a)(6)(B) of this section, any payment of cash 
remuneration for such service which is more or less than a whole-dollar 
amount shall, under such conditions and to such extent as may be 
prescribed by regulations made under this subchapter, be computed to the 
nearest dollar. For the purpose of the computation to the nearest 
dollar, the payment of a fractional part of a dollar shall be 
disregarded unless it amounts to one-half dollar or more, in which case 
it shall be increased to $1. The amount of any payment of cash 
remuneration so computed to the nearest dollar shall, in lieu of the 
amount actually paid, be deemed to constitute the amount of cash 
remuneration for purposes of subsection (a)(6)(B) of this section.

(d) Members of uniformed services

    For purposes of this subchapter, in the case of an individual 
performing service, as a member of a uniformed service, to which the 
provisions of section 410(l)(1) of this title are applicable, the term 
``wages'' shall, subject to the provisions of subsection (a)(1) of this 
section, include as such individual's remuneration for such service only 
(1) his basic pay as described in chapter 3 and section 1009 of title 37 
in the case of an individual performing service to which subparagraph 
(A) of such section 410(l)(1) of this title applies, or (2) his 
compensation for such service as determined under section 206(a) of 
title 37 in the case of an individual performing service to which 
subparagraph (B) of such section 410(l)(1) of this title applies.

(e) Peace Corps volunteers

    For purposes of this subchapter, in the case of an individual 
performing service, as a volunteer or volunteer leader within the 
meaning of the Peace Corps Act [22 U.S.C. 2501 et seq.], to which the 
provisions of section 410(o) of this title are applicable, (1) the term 
``wages'' shall, subject to the provisions of subsection (a) of this 
section, include as such individual's remuneration for such service only 
amounts certified as payable pursuant to section 5(c) or 6(1) of the 
Peace Corps Act [22 U.S.C. 2504(c) or 2505(1)], and (2) any such amount 
shall be deemed to have been paid to such individual at the time the 
service, with respect to which it is paid, is performed.

(f) Tips

    For purposes of this subchapter, tips received by an employee in the 
course of his employment shall be considered remuneration for 
employment. Such remuneration shall be deemed to be paid at the time a 
written statement including such tips is furnished to the employer 
pursuant to section 6053(a) of the Internal Revenue Code of 1986 or (if 
no statement including such tips is so furnished) at the time received.

(g) Members of religious orders

    For purposes of this subchapter, in any case where an individual is 
a member of a religious order (as defined in section 3121(r)(2) of the 
Internal Revenue Code of 1986) performing service in the exercise of 
duties required by such order, and an election of coverage under section 
3121(r) of such Code is in effect with respect to such order or with 
respect to the autonomous subdivision thereof to which such member 
belongs, the term ``wages'' shall, subject to the provisions of 
subsection (a) of this section, include as such individual's 
remuneration for such service the fair market value of any board, 
lodging, clothing, and other perquisites furnished to such member by 
such order or subdivision thereof or by any other person or organization 
pursuant to an agreement with such order or subdivision, except that the 
amount included as such individual's remuneration under this paragraph 
shall not be less than $100 a month.

(h) Retired justices and judges

    For purposes of this subchapter, in the case of an individual 
performing service under the provisions of section 294 of title 28 
(relating to assignment of retired justices and judges to active duty), 
the term ``wages'' shall not include any payment under section 371(b) of 
such title 28 which is received during the period of such service.

(i) Employer contributions under sections 401(k) and 414(h)(2) of 
        Internal Revenue Code

    Nothing in any of the foregoing provisions of this section (other 
than subsection (a) of this section) shall exclude from the term 
``wages''--
        (1) Any employer contribution under a qualified cash or deferred 
    arrangement (as defined in section 401(k) of the Internal Revenue 
    Code of 1986) to the extent not included in gross income by reason 
    of section 402(a)(8) of such Code, or
        (2) Any amount which is treated as an employer contribution 
    under section 414(h)(2) of such Code where the pickup referred to in 
    such section is pursuant to a salary reduction agreement (whether 
    evidenced by a written instrument or otherwise).

(j) Amounts deferred under nonqualified deferred compensation plans

    Any amount deferred under a nonqualified deferred compensation plan 
(within the meaning of section 3121(v)(2)(C) of the Internal Revenue 
Code of 1986) shall be taken into account for purposes of this 
subchapter as of the later of when the services are performed, or when 
there is no substantial risk of forfeiture of the rights to such amount. 
Any amount taken into account as wages by reason of the preceding 
sentence (and the income attributable thereto) shall not thereafter be 
treated as wages for purposes of this subchapter.

(k) ``National average wage index'' and ``deferred compensation amount'' 
        defined

    (1) For purposes of sections 403(f)(8)(B)(ii), 413(d)(2)(B), 
415(a)(1)(B)(ii), 415(a)(1)(C)(ii), 415(a)(1)(D), 415(b)(3)(A)(ii), 
415(i)(1)(E), 415(i)(2)(C)(ii), 424a(f)(2)(B), and 430(b)(2) (and 
430(b)(2) of this title as in effect immediately prior to the enactment 
of the Social Security Amendments of 1977), the term `national average 
wage index' for any particular calendar year means, subject to 
regulations of the Commissioner of Social Security under paragraph (2), 
the average of the total wages for such particular calendar year.
    (2) The Commissioner of Social Security shall prescribe regulations 
under which the national average wage index for any calendar year shall 
be computed--
        (A) on the basis of amounts reported to the Secretary of the 
    Treasury or his delegate for such year,
        (B) by disregarding the limitation on wages specified in 
    subsection (a)(1) of this section,
        (C) with respect to calendar years after 1990, by incorporating 
    deferred compensation amounts and factoring in for such years the 
    rate of change from year to year in such amounts, in a manner 
    consistent with the requirements of section 10208 of the Omnibus 
    Budget Reconciliation Act of 1989, and
        (D) with respect to calendar years before 1978, in a manner 
    consistent with the manner in which the average of the total wages 
    for each of such calendar years was determined as provided by 
    applicable law as in effect for such years.

    (3) For purposes of this subsection, the term ``deferred 
compensation amount'' means--
        (A) any amount excluded from gross income under chapter 1 of the 
    Internal Revenue Code of 1986 by reason of section 402(a)(8),\2\ 
    402(h)(1)(B), or 457(a) of such Code or by reason of a salary 
    reduction agreement under section 403(b) of such Code,
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    \2\ See References in Text note below.
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        (B) any amount with respect to which a deduction is allowable 
    under chapter 1 of such Code by reason of a contribution to a plan 
    described in section 501(c)(18) of such Code, and
        (C) to the extent provided in regulations of the Commissioner of 
    Social Security, deferred compensation provided under any 
    arrangement, agreement, or plan referred to in subsection (i) or (j) 
    of this section.

(Aug. 14, 1935, ch. 531, title II, Sec. 209, 49 Stat. 625; Aug. 10, 
1939, ch. 666, title II, Sec. 201, 53 Stat. 1362, 1373; Mar. 24, 1943, 
ch. 26, Sec. 1(b)(2), 57 Stat. 47; Apr. 4, 1944, ch. 161, Sec. 2, 58 
Stat. 188; Oct. 23, 1945, ch. 433, Sec. 7(b), 59 Stat. 548; Dec. 29, 
1945, ch. 652, title I, Sec. 5(a), 59 Stat. 671; Aug. 10, 1946, ch. 951, 
title IV, Secs. 407(a), 408(a), 409(a), 410, 411, 414, 60 Stat. 988, 
989, 990; Apr. 20, 1948, ch. 222, Sec. 1(a), 62 Stat. 195; Aug. 28, 
1950, ch. 809, title I, Sec. 104(a), 64 Stat. 492; Sept. 1, 1954, ch. 
1206, title I, Secs. 101(a)(1)-(3), 104(a), 68 Stat. 1052, 1078; Aug. 1, 
1956, ch. 836, title I, Sec. 105(a), 70 Stat. 828; Aug. 1, 1956, ch. 
837, title IV, Sec. 401, 70 Stat. 869; Pub. L. 85-786, Sec. 1, Aug. 27, 
1958, 72 Stat. 938; Pub. L. 85-840, title I, Sec. 102(a), Aug. 28, 1958, 
72 Stat. 1019; Pub. L. 86-778, title I, Sec. 103(j)(2)(C), (F), Sept. 
13, 1960, 74 Stat. 937, 938; Pub. L. 87-64, title I, Sec. 102(c)(3)(A), 
June 30, 1961, 75 Stat. 134; Pub. L. 87-293, title II, Sec. 202(b)(2), 
Sept. 22, 1961, 75 Stat. 626; Pub. L. 88-272, title II, Sec. 220(c)(3), 
Feb. 26, 1964, 78 Stat. 63; Pub. L. 88-650, Sec. 4(a), Oct. 13, 1964, 78 
Stat. 1077; Pub. L. 89-97, title III, Secs. 313(a), 320(a)(1), July 30, 
1965, 79 Stat. 382, 393; Pub. L. 90-248, title I, Sec. 108(a)(1), title 
V, Sec. 504(c), Jan. 2, 1968, 81 Stat. 834, 935; Pub. L. 92-5, title II, 
Sec. 203(a)(1), Mar. 17, 1971, 85 Stat. 10; Pub. L. 92-336, title II, 
Sec. 203(a)(1), July 1, 1972, 86 Stat. 417; Pub. L. 92-603, title I, 
Secs. 104(g), 122(a), 123(c)(1), 138(a), Oct. 30, 1972, 86 Stat. 1341, 
1354, 1356, 1365; Pub. L. 93-66, title II, Sec. 203(a)(1), July 9, 1973, 
87 Stat. 153; Pub. L. 93-233, Sec. 5(a)(1), Dec. 31, 1973, 87 Stat. 953; 
Pub. L. 95-216, title III, Sec. 351(a)(1)-(3)(A), Dec. 20, 1977, 91 
Stat. 1549; Pub. L. 95-472, Sec. 3(c), Oct. 17, 1978, 92 Stat. 1333; 
Pub. L. 95-600, title I, Sec. 164(b)(4), Nov. 6, 1978, 92 Stat. 2814; 
Pub. L. 96-499, title XI, Sec. 1141(a)(2), Dec. 5, 1980, 94 Stat. 2693; 
Pub. L. 97-34, title I, Sec. 124(e)(2)(B), Aug. 13, 1981, 95 Stat. 201; 
Pub. L. 97-123, Sec. 3(a), Dec. 29, 1981, 95 Stat. 1662; Pub. L. 98-21, 
title I, Sec. 101(c)(1), title III, Secs. 324(c)(1)-(3), 327(a)(2), 
(b)(2), 328(b), Apr. 20, 1983, 97 Stat. 70, 124, 125, 127, 128; Pub. L. 
98-369, div. A, title IV, Sec. 491(d)(39), title V, Sec. 531(d)(1)(B), 
div. B, title VI, Secs. 2661(i), 2663(a)(6), July 18, 1984, 98 Stat. 
851, 884, 1157, 1162; Pub. L. 99-272, title XII, Sec. 12112(a), Apr. 7, 
1986, 100 Stat. 288; Pub. L. 99-514, title I, Sec. 122(e)(5), title XI, 
Sec. 1151(d)(2)(C), Oct. 22, 1986, 100 Stat. 2112, 2505; Pub. L. 100-
203, title IX, Secs. 9001(a)(2), 9002(a), 9003(a)(1), Dec. 22, 1987, 101 
Stat. 1330-286, 1330-287; Pub. L. 100-647, title I, Secs. 1001(g)(4)(C), 
1011(f)(8), 1011B(a)(22)(E), (23)(B), title III, Sec. 3043(a), title 
VIII, Sec. 8017(a), Nov. 10, 1988, 102 Stat. 3352, 3463, 3486, 3641, 
3793; Pub. L. 101-140, title II, Sec. 203(a)(2), Nov. 8, 1989, 103 Stat. 
830; Pub. L. 101-239, title X, Sec. 10208(a), (d)(1), Dec. 19, 1989, 103 
Stat. 2476, 2479; Pub. L. 101-508, title V, Sec. 5130(a)(5), Nov. 5, 
1990, 104 Stat. 1388-289; Pub. L. 103-296, title I, Sec. 107(a)(4), 
title III, Sec. 321(c)(4), (e)(1), Aug. 15, 1994, 108 Stat. 1478, 1538, 
1539; Pub. L. 103-387, Sec. 2(a)(2)(A), Oct. 22, 1994, 108 Stat. 4072; 
Pub. L. 104-188, title I, Secs. 1421(b)(8)(B), 1458(b)(2), Aug. 20, 
1996, 110 Stat. 1798, 1820.)

                       References in Text

    Section 165 of the Internal Revenue Code of 1939, referred to in 
subsec. (a)(4)(A), (B), was a part of chapter 1 of the 1939 Code, and 
was repealed by section 7851(a)(1)(A), (3) of Title 26, Internal Revenue 
Code of 1954 (act Aug. 16, 1954, ch. 736, 68A Stat. 3). Internal Revenue 
Code of 1954 redesignated Internal Revenue Code of 1986 by Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.
    Section 405(a) of the Internal Revenue Code of 1954, referred to in 
subsec. (a)(4)(D), was repealed by Pub. L. 98-369, div. A, title IV, 
Sec. 491(a), July 18, 1984, 98 Stat. 848.
    For provision deeming a reference in other laws to a provision of 
the 1939 Code as a reference to the corresponding provisions of the 1986 
Code, see section 7852(b) of the 1986 Code. For table of comparisons of 
the 1939 Code to the 1986 Code, see table preceding section 1 of Title 
26, Internal Revenue Code. The Internal Revenue Code of 1986 is 
classified generally to Title 26.
    Internal Revenue Code of 1954, referred to in text, redesignated 
Internal Revenue Code of 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 
100 Stat. 2095.
    Internal Revenue Code of 1986, referred to in text, is classified to 
Title 26.
    The Peace Corps Act, referred to in subsec. (e), is Pub. L. 87-293, 
Sept. 22, 1961, 75 Stat. 612, as amended, which is classified 
principally to chapter 34 (Sec. 2501 et seq.) of Title 22, Foreign 
Relations and Intercourse. For complete classification of this Act to 
the Code, see Short Title note set out under section 2501 of Title 22 
and Tables.
    The enactment of the Social Security Amendments of 1977, referred to 
in subsec. (k)(1), means the enactment of Pub. L. 95-216, which was 
approved Dec. 20, 1977.
    Section 10208 of the Omnibus Budget Reconciliation Act of 1989, 
referred to in subsec. (k)(2)(C), is section 10208 of Pub. L. 101-239, 
title X, Dec. 19, 1989, 103 Stat. 2476, which amended this section, 
sections 403, 413, 415, 417, 418, 424a, and 430 of this title, section 
206 of Title 29, Labor, and section 231 of Title 45, Railroads, and 
enacted provisions set out as a note under section 430 of this title.
    Section 402 of the Internal Revenue Code of 1986, referred to in 
subsec. (k)(3)(A), was amended by Pub. L. 102-318, Sec. 521, and, as so 
amended, provisions formerly contained in section 402(a)(8) are 
contained in section 402(e)(3).


                               Amendments

    1996--Subsec. (a)(4)(J). Pub. L. 104-188, Sec. 1421(b)(8)(B), added 
subpar. (J).
    Subsec. (a)(4)(K). Pub. L. 104-188, Sec. 1458(b)(2), added subpar. 
(K).
    1994--Subsec. (a)(4)(A). Pub. L. 103-296, Sec. 321(c)(4)(A), 
substituted ``Internal Revenue Code of 1954 or the Internal Revenue Code 
of 1986'' for ``Internal Revenue Code of 1954''.
    Subsec. (a)(4)(C), (E), (5)(A). Pub. L. 103-296, 
Sec. 321(c)(4)(B)(i), (ii), substituted ``1986'' for ``1954'' after 
``Code of''.
    Subsec. (a)(6)(B). Pub. L. 103-387 amended subpar. (B) generally. 
Prior to amendment, subpar. (B) read as follows: ``Cash remuneration 
paid by an employer in any calendar quarter to an employee for domestic 
service in a private home of the employer, if the cash remuneration paid 
in such quarter by the employer to the employee for such service is less 
than $50. As used in this paragraph, the term `domestic service in a 
private home of the employer' does not include service described in 
section 410(f)(5) of this title;''.
    Subsecs. (a)(14)(A), (B), (15) to (17), (b), (f), (g), (i)(1), (j). 
Pub. L. 103-296, Sec. 321(c)(4)(B)(iii)-(vi), (C), substituted ``1986'' 
for ``1954'' after ``Code of''.
    Subsec. (k). Pub. L. 103-296, Sec. 321(e)(1), added par. (1) and 
struck out former par. (1) which defined ``deemed average total wages'', 
added par. (2), and redesignated former par. (2) as (3) and in 
introductory provisions of par. (3) substituted ``this subsection'' for 
``paragraph (1)''.
    Pub. L. 103-296, Sec. 107(a)(4), in subsec. (k) as amended by Pub. 
L. 103-296, Sec. 321(e)(1), substituted ``Commissioner of Social 
Security'' for ``Secretary'' in par. (1), in introductory provisions of 
par. (2), and in par. (3)(C).
    1990--Subsec. (a)(7)(B). Pub. L. 101-508 substituted ``clause (ii)'' 
for ``subparagraph (B)'' in concluding provisions.
    1989--Subsec. (a). Pub. L. 101-239, Sec. 10208(d)(1)(A)-(K), 
inserted ``(a)'' at beginning of text and in subsec. (a) as so 
designated, redesignated, respectively, former subsec. (a)(1) to (9) as 
par. (1)(A) to (I), former subsec. (b)(1) to (3) as par. (2)(A) to (C), 
former subsec. (d) as par. (3), former subsec. (e)(1) to (9) as par. 
(4)(A) to (I), former subsec. (f)(1) and (2) as par. (5)(A) and (B), 
former subsec. (g)(1) to (3) as par. (6)(A) to (C), former subsec. 
(h)(1), (2)(A) and (B), and (i) to (iii) as par. (7)(A), (B)(i) and 
(ii), and (I) to (III), former subsecs. (j) and (k) as pars. (8) and 
(9), former subsec. (l)(1) and (2) as par. (10)(A) and (B), former 
subsec. (m)(1) and (2) as par. (11)(A) and (B), former subsecs. (n) and 
(o) as pars. (12) and (13), former subsec. (p)(1) and (2) as par. 
(14)(A) and (B), and former subsecs. (q) to (t) as pars. (15) to (18).
    Subsec. (b). Pub. L. 101-239, Sec. 10208(d)(1)(L), designated par. 
beginning with ``Nothing in the regulations'' as subsec. (b). Former 
subsec. (b) redesignated subsec. (a)(2).
    Subsec. (c). Pub. L. 101-239, Sec. 10208(d)(1)(M), designated par. 
beginning with ``For purposes of this subchapter, in the case of 
domestic service'' as subsec. (c) and substituted ``subsection 
(a)(6)(B)'' for ``subsection (g)(2)'' in two places.
    Subsec. (d). Pub. L. 101-239, Sec. 10208(d)(1)(N), designated par. 
beginning with ``For purposes of this subchapter, in the case of an 
individual performing service, as a member'' as subsec. (d) and 
substituted ``subsection (a)(1)'' for ``subsection (a)'' in introductory 
provisions. Former subsec. (d) redesignated subsec. (a)(3).
    Subsecs. (e) to (h). Pub. L. 101-239, Sec. 10208(d)(1)(O)-(R), 
designated pars. beginning with ``For purposes of this subchapter, in 
the case of an individual performing service, as a volunteer'', ``For 
purposes of this subchapter, tips received'', ``For purposes of this 
subchapter, in any case where'', and ``For purposes of this subchapter, 
in the case of an individual performing service under the provisions'', 
as subsecs. (e) to (h), respectively. Former subsecs. (e) to (h) 
redesignated subsec. (a)(4) to (7), respectively.
    Subsec. (i). Pub. L. 101-239, Sec. 10208(d)(1)(S), designated par. 
beginning with ``Nothing in any of the foregoing'' as subsec. (i).
    Pub. L. 101-140 amended cls. (2) and (3) of next to last indented 
par. of closing provisions [now subsec. (i)] to read as if amendment by 
Pub. L. 100-647, Sec. 1011B(a)(22)(E), had not been enacted, see 1988 
Amendment note below.
    Subsec. (j). Pub. L. 101-239, Sec. 10208(d)(1)(T), designated par. 
beginning with ``Any amount deferred'' as subsec. (j). Former subsec. 
(j) redesignated subsec. (a)(8).
    Subsec. (k). Pub. L. 101-239, Sec. 10208(a), added subsec. (k).
    1988--Pub. L. 100-647, Sec. 1011B(a)(22)(E), in next to last 
indented par. of closing provisions, substituted ``, or'' for period at 
end of cl. (2) and added cl. (3).
    Subsec. (e)(8). Pub. L. 100-647, Sec. 1011(f)(8), amended cl. (8) 
generally. Prior to amendment, cl. (8) read as follows: ``under a 
simplified employee pension (as defined in section 408(k) of the 
Internal Revenue Code of 1986) if, at the time of the payment, it is 
reasonable to believe that the employee will be entitled to a deduction 
under section 219(b)(2) of such Code for such payment,''.
    Subsec. (e)(9). Pub. L. 100-647, Sec. 1011B(a)(23)(B), inserted ``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'' after ``1986)''.
    Subsec. (h)(2). Pub. L. 100-647, Sec. 8017(a), amended par. (2) 
generally. Prior to amendment, par. (2) read as follows: ``Cash 
remuneration paid by an employer in any calendar year to an employee for 
agricultural labor unless (A) the cash remuneration paid in such year by 
the employer to the employee for such labor is $150 or more, or (B) the 
employer's expenditures for agricultural labor in such year equal or 
exceed $2,500;''.
    Subsec. (k). Pub. L. 100-647, Sec. 1001(g)(4)(C), substituted 
``section 217 of the Internal Revenue Code of 1986 (determined without 
regard to section 274(n) of such Code)'' for ``section 217 of the 
Internal Revenue Code of 1954''.
    Subsec. (t). Pub. L. 100-647, Sec. 3043(a), added subsec. (t).
    1987--Pub. L. 100-203, Sec. 9001(a)(2), in second indented par. of 
closing provisions, substituted ``only (1) his basic pay as described in 
chapter 3 and section 1009 of title 37 in the case of an individual 
performing service to which subparagraph (A) of such section 410(l)(1) 
of this title applies, or (2) his compensation for such service as 
determined under section 206(a) of title 37 in the case of an individual 
performing service to which subparagraph (B) of such section 410(l)(1) 
of this title applies.'' for ``only his basic pay as described in 
chapter 3 and section 1009 of title 37.''
    Subsec. (b)(3). Pub. L. 100-203, Sec. 9003(a)(1), substituted 
``death, except that this subsection does not apply to a payment for 
group-term life insurance to the extent that such payment is includible 
in the gross income of the employee under the Internal Revenue Code of 
1986'' for ``death''.
    Subsec. (h)(2)(B). Pub. L. 100-203, Sec. 9002(a), added cl. (B) and 
struck out former cl. (B) which read as follows: ``the employee performs 
agricultural labor for the employer on twenty days or more during such 
year for cash remuneration computed on a time basis;''.
    1986--Subsec. (e). Pub. L. 99-514, Sec. 1151(d)(2)(C), added cl. 
(9).
    Subsec. (s). Pub. L. 99-514, Sec. 122(e)(5), substituted ``74(c), 
117, or'' for ``117 or''.
    Pub. L. 99-272 in third to last undesignated paragraph, substituted 
``shall not include'' for ``shall, subject to the provisions of 
subsection (a) of this section, include''.
    1984--Pub. L. 98-369, Sec. 531(d)(1)(B)(i), inserted in introductory 
text ``(including benefits)'' before ``paid in any medium''.
    Subsec. (a)(5) to (9). Pub. L. 98-369, Sec. 2663(a)(6)(A)(i), 
realigned margins of pars. (5) to (9).
    Subsec. (e). Pub. L. 98-369, Sec. 2663(a)(6)(A)(v), realigned margin 
of subsec. (e).
    Subsec. (e)(4). Pub. L. 98-369, Sec. 491(d)(39), inserted ``(as in 
effect before July 18, 1984)'' after ``section 405(a) of the Internal 
Revenue Code of 1954''.
    Subsec. (e)(7). Pub. L. 98-369, Sec. 2661(i)(1), struck out the 
semicolon after ``Act of 1974''.
    Subsecs. (f), (k) to (p). Pub. L. 98-369, Sec. 2663(a)(6)(A)(v), 
realigned margins of subsecs. (f) and (k) to (p).
    Subsec. (p). Pub. L. 98-369, Sec. 2663(a)(6)(A)(ii)-(iv), 
redesignated the subsec. (p) enacted by Pub. L. 95-216 as par. (1) and 
the subsec. (p) enacted by Pub. L. 95-472 as par. (2), and substituted a 
semicolon for a period in par. (1) as so redesignated.
    Subsecs. (q), (r). Pub. L. 98-369, Sec. 2663(a)(6)(A)(v), realigned 
margins of subsecs. (q) and (r).
    Subsec. (s). Pub. L. 98-369, Sec. 531(d)(1)(B)(ii), added subsec. 
(s).
    Pub. L. 98-369, Sec. 2663(a)(6)(B), in undesignated par. relating to 
the meaning of ``wages'' in the case of a member of a uniformed service 
to which section 410(l)(1) of this title is applicable, substituted 
``chapter 3 and section 1009 of title 37'' for ``section 102(10) of the 
Servicemen's and Veterans' Survivor Benefits Act''.
    Pub. L. 98-369, Sec. 2661(i)(2), in undesignated par. relating to 
employer contributions as not being excluded from ``wages'', inserted 
``where the pickup referred to in such section is pursuant to a salary 
reduction agreement (whether evidenced by a written instrument or 
otherwise)''.
    1983--Subsec. (b). Pub. L. 98-21, Sec. 324(c)(3)(A), struck out cl. 
(1) which read ``retirement'', and redesignated cls. (2) to (4) as (1) 
to (3), respectively.
    Subsec. (c). Pub. L. 98-21, Sec. 324(c)(3)(B), struck out subsec. 
(c) which related to any payment made to an employee (including any 
amount paid by an employer for insurance or annuities, or into a fund, 
to provide for any such payment) on account of retirement.
    Subsec. (e)(5) to (7). Pub. L. 98-21, Sec. 324(c)(2), added cls. (5) 
to (7).
    Subsec. (e)(8). Pub. L. 98-21, Sec. 328(b), added cl. (8).
    Subsec. (i). Pub. L. 98-21, Sec. 324(c)(3)(B), struck out subsec. 
(i) which related to any payment (other than vacation or sick pay) made 
to an employee after the month in which he attained age 62, if he did 
not work for the employer in the period for which such payment was made, 
and provided for this subsection that ``sick pay'' included remuneration 
for service in the employ of a State, a political subdivision (as 
defined in section 418(b)(2) of this title) of a State, or an 
instrumentality of two or more States, paid to an employee thereof for a 
period during which he was absent from work because of sickness.
    Subsec. (m)(1)(C). Pub. L. 98-21, Sec. 324(c)(3)(C), struck out 
subpar. (C) which related to retirement after attaining an age specified 
in the plan referred to in par. (2) or in a pension plan of the 
employer.
    Subsec. (r). Pub. L. 98-21, Sec. 327(a)(2), added subsec. (r).
    Pub. L. 98-21, Sec. 327(b)(2), inserted, immediately following 
subsec. (r), provision that nothing in the regulations prescribed for 
purposes of chapter 24 of the Internal Revenue Code of 1954 (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 
subchapter.
    Pub. L. 98-21, Sec. 324(c)(1), inserted, at end of section, two 
undesignated pars. specifying the inclusion of certain employer 
contributions as ``wages'' and directing that any amount deferred under 
a nonqualified deferred compensation plan be taken into account under 
certain conditions but not treated as wages thereafter for purposes of 
this subchapter.
    Pub. L. 98-21, Sec. 101(c)(1), inserted, at end of section, 
undesignated par. defining ``wages'' for purposes of this subchapter in 
the case of an individual performing service under provisions of section 
294 of title 28 (relating to assignment of retired justices and judges 
to active duty) to include payments under section 371(b) of title 28 
that is received during the period of such service.
    1981--Subsec. (b)(2). Pub. L. 97-123 inserted ``(but, in the case of 
payments made to an employee or any of his dependents, this clause shall 
exclude from the term `wages' only payments which are received under a 
workmen's compensation law)'' after ``sickness or accident disability''.
    Subsec. (q). Pub. L. 97-34 substituted ``section 127 or 129'' for 
``section 127''.
    1980--Subsec. (f). Pub. L. 96-499 substituted ``section 3101 of the 
Internal Revenue Code of 1954'' for ``section 1400 of the Internal 
Revenue Code of 1939'' in subpar. (1) and inserted ``with respect to 
remuneration paid to an employee for domestic service in a private home 
of the employer or for agricultural labor''.
    1978--Subsec. (p). Pub. L. 95-472 added a second subsec. (p).
    Subsec. (q). Pub. L. 95-600 added subsec. (q).
    1977--Subsecs. (g)(3), (j). Pub. L. 95-216, Sec. 351(a)(1), (2), 
substituted ``year'' for ``quarter'' wherever appearing and ``$100'' for 
``$50''.
    Subsec. (n). Pub. L. 95-216, Sec. 351(a)(3)(A), struck out ``or'' 
after ``such employee died''.
    Subsec. (o). Pub. L. 95-216, Sec. 351(a)(3)(A), substituted 
``payment is made; or'' for ``payment is made.''.
    Subsec. (p). Pub. L. 95-216, Sec. 351(a)(3)(A), added subsec. (p).
    1973--Subsec. (a)(8). Pub. L. 93-233 substituted ``$13,200'' for 
``$12,600''.
    Pub. L. 93-66 substituted ``$12,600'' for ``$12,000''.
    1972--Subsec. (a)(6). Pub. L. 92-336, Sec. 203(a)(1)(A), inserted 
``and prior to 1973'' after ``1971''.
    Subsec. (a)(7) to (9). Pub. L. 92-336, Sec. 203(a)(1)(B), added 
pars. (7) to (9).
    Subsec. (i). Pub. L. 92-603, Sec. 104(g), struck out ``(if a woman) 
and age 65 (if a man)'' after ``attains age 62''.
    Subsec. (n). Pub. L. 92-603, Sec. 122(a), added subsec. (n).
    Subsec. (o). Pub. L. 92-603, Sec. 138(a), added subsec. (o).
    Pub. L. 92-603, Sec. 123(c)(1), added par. at end defining ``wages'' 
in the case of members of a religious order when an election under 
section 3121(r) of the Internal Revenue Code of 1954 is in effect.
    1971--Subsec. (a)(5). Pub. L. 92-5, Sec. 203(a)(1)(A), inserted 
``and prior to 1972'' after ``1967''.
    Subsec. (a)(6). Pub. L. 92-5, Sec. 203(a)(i)(B), added par. (6).
    1968--Subsec. (a)(4), (5). Pub. L. 90-248, Sec. 108(a)(1)(A), (B), 
inserted ``and prior to 1968'' after ``1965'' and added par. (5), 
respectively.
    Subsec. (m). Pub. L. 90-248, Sec. 504(c), added subsec. (m).
    1965--Subsec. (a)(3). Pub. L. 89-97, Sec. 320(a)(1)(A), inserted 
``and prior to 1966'' after ``1958''.
    Subsec. (a)(4). Pub. L. 89-97, Sec. 320(a)(1)(B), added par. (4).
    Subsec. (l). Pub. L. 89-97, Sec. 313(a)(1), added subsec. (l).
    Pub. L. 89-97, Sec. 313(a)(2), added paragraph at end providing that 
tips be considered remuneration and that such remuneration be deemed 
paid as of the filing of a written statement or as of the time received.
    1964--Subsec. (e). Pub. L. 88-272 included as ``wages'' payments 
after 1954 under or to trust exempt under sections 401 and 501(a), 
I.R.C. 1954, under annuity plans after 1954 and prior to 1963, under 
section 401(a)(3), (4), (5), and (6), I.R.C. 1954, under or to annuity 
plans which at time of payment after 1962, are described in section 
403(a), I.R.C. 1954, and under or to a bond purchase plan which at time 
of any payment after 1962, is a qualified bond purchase plan described 
in section 405(a), I.R.C. 1954.
    Subsec. (k). Pub. L. 88-650 added subsec. (k).
    1961--Subsec. (i). Pub. L. 87-64 substituted ``attains age 62 (if a 
woman) or age 65 (if a man)'' for ``attains retirement age (as defined 
in section 416(a) of this title)''.
    Pub. L. 87-293 added last paragraph providing for computation of 
wages for Peace Corps volunteer service.
    1960--Subsec. (j). Pub. L. 86-778, Sec. 103(j)(2)(F), substituted 
``section 410(j)(3)(C)'' for ``section 410(k)(3)(C)''.
    Pub. L. 86-778, Sec. 103(j)(2)(C), substituted ``section 410(l)(1) 
of this title'' for ``section 410(m)(1) of this title'' in last par.
    1958--Subsec. (a). Pub. L. 85-840 inserted ``and prior to 1959'' 
after ``any calendar year after 1954'' in cl. (2), and added cl. (3).
    Subsec. (i). Pub. L. 85-786 inserted sentence to include 
remuneration for service in State employment paid to employee for period 
he was absent for illness in term ``sick pay''.
    1956--Subsec. (h)(2). Act Aug. 1, 1956, ch. 836, included within 
definition of ``wages'' cash remuneration of $150 or more, and cash 
remuneration computed on a time basis where the employee performs 
agricultural labor for the employer on 20 days or more during the 
calendar year.
    Act Aug. 1, 1956, ch. 837, added penultimate par. to define 
``wages'' in the case of an individual performing service, as a member 
of a uniformed service, to which the provisions of section 410(m)(1) of 
this title are applicable.
    1954--Subsec. (a). Act Sept. 1, 1954, Sec. 104(a), provided that for 
years after 1954 ``wages'' would exclude any remuneration in excess of 
$4,200 paid to an individual with respect to employment during a 
calendar year.
    Subsec. (g)(2). Act Sept. 1, 1954, Sec. 101(a)(1), made coverage of 
domestic service depend solely on receipt by the employee, in a quarter, 
of $50 in cash remuneration from one employer for such service.
    Subsec. (g)(3). Act Sept. 1, 1954, Sec. 101(a)(2), added par. (3).
    Subsec. (h). Act Sept. 1, 1954, Sec. 101(a)(3), redesignated 
subsection as cl. (1) and added cl. (2).
    1950--Act Aug. 28, 1950, amended section generally.
    1948--Subsec. (b)(15). Act Apr. 20, 1948, inserted subpar. (B).
    1946--Subsec. (a). Act Aug. 10, 1946, Sec. 414, in amending subsec. 
(a), made pars. (1) and (2) applicable only to payments before Jan. 1, 
1947, added a new par. (3), applicable to payments after that date, and 
renumbered former pars. (3) to (6) to be pars. (4) to (7), respectively.
    Subsec. (h). Act Aug. 10, 1946, Sec. 407(a), in amending subsec. 
(h), required a currently insured individual to have not less than six 
quarters of coverage during the period consisting of the quarter in 
which he died and the twelve preceding quarters.
    Subsec. (i). Act Aug. 10, 1946, Sec. 408(a), in amending subsec. 
(i), required only that a wife be married to the insured individual for 
36 months instead of requiring that they be married before Jan. 1, 1939, 
or before he became 60 years of age, as was formerly the case.
    Subsec. (k). Act Aug. 10, 1946, Sec. 409(a), in amending subsec. 
(k), changed requirement that a stepchild or adopted child must have 
been such before the individual reached age 60 to require, in the case 
of a living individual, that the child must have been a stepchild or 
adopted child for 36 months.
    Subsec. (q). Act Aug. 10, 1946, Sec. 410, added subsec. (q).
    Subsec. (r). Act Aug. 10, 1946, Sec. 411, added subsec. (r).
    1945--Subsec. (b)(16). Act. Dec. 29, 1945, added par. (16).
    Subsec. (p). Act Oct. 23, 1945, added subsec. (p).
    1944--Subsec. (o)(1). Act Apr. 4, 1944, Sec. 2, inserted ``but shall 
not include any such service performed (1) under a contract entered into 
without the United States and during the performance of which the vessel 
does not touch at a port in the United States, or (2) on a vessel 
documented under the laws of any foreign country and bareboat chartered 
to the War Shipping Administration''.
    1943--Subsec. (o). Act Mar. 24, 1943, added subsec. (o).
    1939--Act Aug. 10, 1939, amended section generally.


                    Effective Date of 1996 Amendment

    Amendment by section 1421(b)(8)(B) of Pub. L. 104-188 applicable to 
taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. 
L. 104-188, set out as a note under section 72 of Title 26, Internal 
Revenue Code.
    Amendment by section 1458(b)(2) of Pub. L. 104-188 applicable to 
remuneration paid after Dec. 31, 1996, see section 1458(c)(2) of Pub. L. 
104-188, set out as a note under section 3121 of Title 26.


                    Effective Date of 1994 Amendments

    Amendment by Pub. L. 103-387 applicable to remuneration paid after 
Dec. 31, 1993, see section 2(a)(3) of Pub. L. 103-387, set out as a note 
under section 3102 of Title 26, Internal Revenue Code.
    Amendment by section 107(a)(4) of 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 this title.


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-508 effective as if included in the 
enactment of Pub. L. 101-239, Sec. 10208, see section 5130(b) of Pub. L. 
101-508, set out as a note under section 1402 of Title 26, Internal 
Revenue Code.


                    Effective Date of 1989 Amendments

    Amendment by section 10208(a) of Pub. L. 101-239 applicable with 
respect to computation of average total wage amounts (under amended 
provisions) for calendar years after 1990, see section 10208(c) of Pub. 
L. 101-239, set out as a note under section 430 of this title.
    Amendment by Pub. L. 101-140 effective as if included in section 
1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set out 
as a note under section 79 of Title 26, Internal Revenue Code.


                    Effective Date of 1988 Amendment

    Amendment by sections 1001(g)(4)(C), 1011(f)(8), and 1011B(a)(23)(B) 
of Pub. L. 100-647 effective, except as otherwise provided, as if 
included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, 
to which such amendment relates, see section 1019(a) of Pub. L. 100-647, 
set out as a note under section 1 of Title 26, Internal Revenue Code.
    Amendment by section 1011B(a)(22)(E) of Pub. L. 100-647 not 
applicable to any individual who separated from service with the 
employer before Jan. 1, 1989, see section 1011B(a)(22)(F) of Pub. L. 
100-647, set out as a note under section 3121 of Title 26.
    Amendment by section 3043(a) of Pub. L. 100-647 applicable to all 
periods beginning before, on, or after Nov. 10, 1988, with no inference 
created as to existence or non-existence or scope of any exemption from 
tax for income derived from fishing rights secured as of Mar. 17, 1988, 
by any treaty, law, or Executive Order, see section 3044 of Pub. L. 100-
647, set out as an Effective Date note under section 7873 of Title 26.
    Amendment by section 8017(a) of Pub. L. 100-647 effective as if 
included in amendments made by section 9002 of Omnibus Budget 
Reconciliation Act of 1987, Pub. L. 100-203, see section 8017(c) of Pub. 
L. 100-647, set out as a note under section 3121 of Title 26.


                    Effective Date of 1987 Amendment

    Amendment by section 9001(a)(2) of Pub. L. 100-203 applicable with 
respect to remuneration paid after Dec. 31, 1987, see section 9001(d) of 
Pub. L. 100-203, set out as a note under section 3121 of Title 26, 
Internal Revenue Code.
    Amendment by section 9002(a) of Pub. L. 100-203 applicable with 
respect to remuneration for agricultural labor paid after Dec. 31, 1987, 
see section 9002(c) of Pub. L. 100-203, set out as a note under section 
3121 of Title 26.
    Amendment by section 9003(a)(1) of Pub. L. 100-203 applicable with 
respect to group-term life insurance coverage in effect after Dec. 31, 
1987, with exception for employer's group-term life insurance payments 
for certain former employees, see section 9003(b) of Pub. L. 100-203, as 
amended, set out as a note under section 3121 of Title 26.


                    Effective Date of 1986 Amendments

    Amendment by section 122(e)(5) of Pub. L. 99-514 applicable to 
prizes and awards granted after Dec. 31, 1986, see section 151(c) of 
Pub. L. 99-514, set out as a note under section 1 of Title 26, Internal 
Revenue Code.
    Amendment by section 1151(d)(2)(C) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1983, see section 1151(k)(5) of 
Pub. L. 99-514, set out as a note under section 79 of Title 26.
    Section 12112(c) of Pub. L. 99-272 provided that: ``The amendments 
made by this section [amending this section and section 3121 of Title 
26, Internal Revenue Code] shall be effective with respect to service 
performed after December 31, 1983.''


                    Effective Date of 1984 Amendment

    Amendment by section 491(d)(39) of Pub. L. 98-369 applicable to 
obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 
98-369, set out as a note under section 62 of Title 26, Internal Revenue 
Code.
    Amendment by section 531(d)(1)(B) of Pub. L. 98-369 effective Jan. 
1, 1985, see section 531(h) of Pub. L. 98-369, set out as an Effective 
Date note under section 132 of Title 26.
    Amendment by section 2661(i) of Pub. L. 98-369 effective as though 
included in the enactment of the Social Security Amendments of 1983, 
Pub. L. 98-21, see section 2664(a) of Pub. L. 98-369, set out as a note 
under section 401 of this title.
    Amendment by section 2663(a)(6) of Pub. L. 98-369 effective July 18, 
1984, but not to be construed as changing or affecting any right, 
liability, status, or interpretation which existed (under the provisions 
of law involved) before that date, see section 2664(b) of Pub. L. 98-
369, set out as a note under section 401 of this title.


                    Effective Date of 1983 Amendment

    Amendment by section 101(c)(1) of Pub. L. 98-21 effective with 
respect to services performed after Dec. 31, 1983, see section 101(d) of 
Pub. L. 98-21, as amended, set out as a note under section 3121 of Title 
26, Internal Revenue Code.
    Amendment by section 324(c)(1)-(3) of Pub. L. 98-21 applicable to 
remuneration paid after Dec. 31, 1983, except for certain employer 
contributions made during 1984 under a qualified cash or deferred 
arrangement, and except in the case of an agreement with certain 
nonqualified deferred compensation plans in existence on Mar. 24, 1983, 
see section 324(d) of Pub. L. 98-21, set out as a note under section 
3121 of Title 26.
    Amendment by section 327(a)(2) of Pub. L. 98-21 applicable to 
remuneration paid after Dec. 31, 1983, see section 327(d)(1) of Pub. L. 
98-21, as amended, set out as a note under section 3121 of Title 26.
    Amendment by section 327(b)(2) of Pub. L. 98-21 applicable to 
remuneration (other than amounts excluded under 26 U.S.C. 119) paid 
after Mar. 4, 1983, and to any such remuneration paid on or before such 
date which the employer treated as wages when paid, see section 
327(d)(2) of Pub. L. 98-21, as amended, set out as a note under section 
3121 of Title 26.
    Amendment by section 328(b) of Pub. L. 98-21 applicable to 
remuneration paid after Dec. 31, 1983, see section 328(d)(1) of Pub. L. 
98-21, set out as a note under section 3121 of Title 26.


                    Effective Date of 1981 Amendments

    Amendment by Pub. L. 97-123 applicable, except as otherwise 
provided, to remuneration paid after Dec. 31, 1981, see section 3(g) of 
Pub. L. 97-123, set out as a note under section 3121 of Title 26, 
Internal Revenue Code.
    Amendment by Pub. L. 97-34 applicable to remuneration paid after 
Dec. 31, 1981, see section 124(f) of Pub. L. 97-34, set out as a note 
under section 21 of Title 26.


                    Effective Date of 1980 Amendment

    For effective date of amendment by Pub. L. 96-499, see section 
1141(c) of Pub. L. 96-499, set out as a note under section 3121 of Title 
26, Internal Revenue Code.


                    Effective Date of 1978 Amendments

    Amendment by Pub. 95-600 applicable with respect to taxable years 
beginning after Dec. 31, 1978, see section 164(d) of Pub. L. 95-600, set 
out as an Effective Date note under section 127 of Title 26, Internal 
Revenue Code.
    Amendment by Pub. L. 95-472 applicable with respect to taxable years 
beginning after Dec. 31, 1976, see section 3(d) of Pub. L. 95-472, set 
out as a note under section 3121 of Title 26.


                    Effective Date of 1977 Amendment

    Section 351(d) of Pub. L. 95-216 provided that: ``The amendments 
made by subsection (a) [amending this section and section 410 of this 
title] shall apply with respect to remuneration paid and services 
rendered after December 31, 1977. The amendments made by subsections (b) 
and (c) [amending sections 412 and 413 of this title] shall be effective 
January 1, 1978.''


                    Effective Date of 1973 Amendments

    Section 5(e) of Pub. L. 93-233 provided that: ``The amendments made 
by this section [amending this section and sections 411, 413, and 430 of 
this title and sections 3121, 3122, 3125, 6413, and 6654 of Title 26, 
Internal Revenue Code], except subsection (a)(4), shall apply only with 
respect to remuneration paid after, and taxable years beginning after, 
1973. The amendments made by subsection (a)(4) [amending section 415 of 
this title] shall apply with respect to calendar years after 1973.''
    Section 203(e) of Pub. L. 93-66 provided that: ``The amendments made 
by this section [amending this section and sections 411, 415, and 430 of 
this title and sections 3121, 3122, 3125, 6413, and 6654 of Title 26] 
except subsection (a)(4), shall apply only with respect to remuneration 
paid after, and taxable years beginning after, 1973. The amendments made 
by subsection (a)(4) [amending section 415 of this title] shall apply 
with respect to calendar years after 1973.''


                    Effective Date of 1972 Amendments

    Amendment by section 104(g) of Pub. L. 92-603 applicable only with 
respect to payments after 1974, see section 104(j) of Pub. L. 92-603, 
set out as a note under section 414 of this title.
    Section 122(c) of Pub. L. 92-603 provided that: ``The amendments 
made by this section [amending this section and section 3121 of Title 
26, Internal Revenue Code] shall apply in the case of any payment made 
after December 1972.''
    Section 138(c) of Pub. L. 92-603 provided that: ``The amendments 
made by this section [amending this section and section 3121 of Title 
26, Internal Revenue Code] shall apply in the case of any payment made 
after December 1972.''
    Section 203(c) of Pub. L. 92-336 provided that: ``The amendments 
made by subsections (a)(1) and (a)(3)(A) [amending this section and 
section 413 of this title], and the amendments made by subsection (b) 
[amending sections 3121, 3122, 3125, and 6413 of Title 26, Internal 
Revenue Code] (except paragraphs (1) and (7) thereof), shall apply only 
with respect to remuneration paid after December 1972. The amendments 
made by subsections (a)(2), (a)(3)(B), (b)(1), and (b)(7) [amending 
sections 411 and 413 of this title and sections 1402 and 6654 of Title 
26] shall apply only with respect to taxable years beginning after 1972. 
The amendment made by subsection (a)(4) [amending section 415 of this 
title] shall apply only with respect to calendar years after 1972.''


                    Effective Date of 1971 Amendment

    Section 203(c) of Pub. L. 92-5 provided that: ``The amendments made 
by subsections (a)(1) and (a)(3)(A) [amending this section and section 
413 of this title], and the amendments made by subsection (b) (except 
paragraphs (1) and (7) thereof) [amending sections 3121, 3122, 3125, and 
6413 of Title 26, Internal Revenue Code], shall apply only with respect 
to remuneration paid after December 1971. The amendments made by 
subsections (a)(2), (a)(3)(B), (b)(1), and (b)(7) [amending sections 411 
and 413 of this title and sections 1402 and 6654 of Title 26] shall 
apply only with respect to taxable years beginning after 1971. The 
amendment made by subsection (a)(4) [amending section 415 of this title] 
shall apply only with respect to calendar years after 1971.''


                    Effective Date of 1968 Amendment

    Section 108(c) of Pub. L. 90-248 provided that: ``The amendment made 
by subsections (a)(1) and (a)(3)(A) [amending this section and section 
423 of this title], and the amendments made by subsection (b) (except 
paragraph (1) thereof) [amending sections 1402, 3121, 3122, 3125, and 
6413 of Title 26, Internal Revenue Code], shall apply only with respect 
to remuneration paid after December 1967. The amendments made by 
subsections (a)(2), (a)(3)(B), and (b)(1) [amending sections 411 and 413 
of this title and section 1402 of Title 26] shall apply only with 
respect to taxable years ending after 1967. The amendment made by 
subsection (a)(4) [amending section 415 of this title] shall apply only 
with respect to calendar years after 1967.''
    Amendment by section 504(c) of Pub. L. 90-248 applicable with 
respect to remuneration paid after Jan. 2, 1968, see section 504(d) of 
Pub. L. 90-248, set out as a note under section 3121 of Title 26.


                    Effective Date of 1965 Amendment

    Amendment by section 313(a) of Pub. L. 89-97 applicable only with 
respect to tips received by employees after 1965, see section 313(f) of 
Pub. L. 89-97, set out as an Effective Date note under section 6053 of 
Title 26, Internal Revenue Code.
    Amendment by section 320(a)(1) of Pub. L. 89-97 applicable with 
respect to remuneration paid after December 1965, see section 320(c) of 
Pub. L. 89-97, set out as a note under section 3121 of Title 26.


                    Effective Date of 1964 Amendments

    Amendment by Pub. L. 88-650 applicable with respect to remuneration 
paid on or after the first day of the first calendar month which begins 
more than ten days after Oct. 13, 1964, see section 4(d) of Pub. L. 88-
650, set out as a note under section 3121 of Title 26, Internal Revenue 
Code.
    Amendment by Pub. L. 88-272 applicable to remuneration paid after 
Dec. 31, 1962, see section 220(d) of Pub. L. 88-272, set out as an 
Effective Date note under section 406 of Title 26.


                    Effective Date of 1961 Amendments

    Amendment by Pub. L. 87-293 applicable with respect to service 
performed after Sept. 22, 1961, but in the case of persons serving under 
the Peace Corps agency established by executive order applicable with 
respect to service performed on or after the effective date of 
enrollment, see section 202(c) of Pub. L. 87-293, set out as a note 
under section 3121 of Title 26, Internal Revenue Code.
    Amendment by Pub. L. 87-64 applicable with respect to monthly 
benefits for months beginning on or after August 1, 1961, based on 
applications filed in or after March 1961, and with respect to lump-sum 
death payments under this subchapter in the case of deaths on or after 
August 1, 1961, see sections 102(f) and 109 of Pub. L. 87-64, set out as 
1961 Increase in Monthly Benefits; Effective Date, and Effective Date of 
1961 Amendment notes, respectively, under section 402 of this title.


                    Effective Date of 1960 Amendment

    Amendment by Pub. L. 86-778 effective Sept. 13, 1960, see section 
103(v)(1) of Pub. L. 86-778, set out as a note under section 402 of this 
title.


                    Effective Date of 1958 Amendment

    Section 2 of Pub. L. 85-786 provided that: ``The amendment made by 
section 1 [amending this section] shall be applicable to remuneration 
paid after the enactment of this Act [Aug. 27, 1958], except that, in 
the case of any coverage group which is included under the agreement of 
a State under section 218 of the Social Security Act [section 418 of 
this title], the amendment made by section 1 shall also be applicable to 
remuneration for any member of such coverage group with respect to 
services performed after the effective date, specified in such 
agreement, for such coverage group, if such State has paid or agrees, 
prior to January 1, 1959, to pay, prior to such date, the amounts which 
under section 218(e) [section 418(e) of this title] would have been 
payable with respect to remuneration of all members of such coverage 
group had the amendment made by section 1 been in effect on and after 
January 1, 1951. Failure by a State to make such payments prior to 
January 1, 1959, shall be treated the same as failure to make payments 
when due under section 218(e).''


                    Effective Date of 1956 Amendment

    Amendment by act Aug. 1, 1956, ch. 837, effective Jan. 1, 1957, see 
section 603(a) of act Aug. 1, 1956.
    Section 105(d) of act Aug. 1, 1956, ch. 836, provided that: ``The 
amendment made by subsection (a) of this section [amending this section] 
shall apply with respect to remuneration paid after 1956, and the 
amendment made by subsection (b) of this section [amending section 410 
of this title] shall apply with respect to service performed after 
1956.''


                    Effective Date of 1954 Amendment

    Amendment by section 101(a)(1)-(3) of act Sept. 1, 1954, applicable 
only with respect to remuneration paid after 1954, see section 101(m) of 
act Sept. 1, 1954, set out as a note under section 405 of this title.


                    Effective Date of 1950 Amendment

    Section 104(b) of act Aug. 28, 1950, provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect January 
1, 1951, except that sections 214, 215, and 216 of the Social Security 
Act [sections 414 to 416 of this title] shall be applicable (1) in the 
case of monthly benefits for months after August 1950, and (2) in the 
case of lump-sum death payments with respect to deaths after August 
1950.''


                    Effective Date of 1948 Amendment

    Section 1(b) of act Apr. 20, 1948, provided in part that: ``The 
amendment made by subsection (a) [amending this section] shall be 
applicable with respect to services performed after the date of the 
enactment of this Act [Apr. 20, 1948].''


                    Effective Date of 1946 Amendment

    Sections 407(b), 408(b), and 409(b) of act Aug. 10, 1946, each 
provided that: ``The amendment made by subsection (a) of this section 
[amending this section] shall be applicable only in cases of 
applications for benefits under this title [this subchapter] filed after 
December 31, 1946.''


                    Effective Date of 1945 Amendment

    Section 5(a) of act Dec. 29, 1945, provided that the amendment made 
by that section is effective Jan. 1, 1946.


                    Effective Date of 1939 Amendment

    Section 201 of act Aug. 10, 1939, provided that the amendment made 
by that section is effective Jan. 1, 1940.


      Repeals: Amendments and Application of Amendments Unaffected

    Section 202(b)(2) of Pub. L. 87-293, cited as a credit to this 
section, was repealed by Pub. L. 89-572, Sec. 5(a), Sept. 13, 1966, 80 
Stat. 765. Such repeal not deemed to affect amendments to this section 
contained in such provisions, and continuation in full force and effect 
until modified by appropriate authority of all determinations, 
authorization, regulations, orders, contracts, agreements, and other 
actions issued, undertaken, or entered into under authority of the 
repealed provisions, see section 5(b) of Pub. L. 89-572, set out as a 
note under former section 2515 of Title 22, Foreign Relations and 
Intercourse.


Exclusion From Wages and Compensation of Refunds Required From Employers 
   To Compensate for Duplication of Medicare Benefits by Health Care 
                     Benefits Provided by Employers

    For purposes of this subchapter, the term ``wages'' shall not 
include the amount of any refund required under section 421 of Pub. L. 
100-360 [42 U.S.C. 1395b note], see section 10202 of Pub. L. 101-239, 
set out as a note under section 1395b of this title.


  Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99-514; 
Monies Appropriated for Fiscal Year 1990 Not To Be Used for Enforcement 
                     or Implementation of Amendment

    No monies appropriated by Pub. L. 101-136 to be used to implement or 
enforce section 1151 of Pub. L. 99-514 or the amendments made by such 
section, see section 528 of Pub. L. 101-136, set out as a note under 
section 89 of Title 26, Internal Revenue Code.


    Social Security Coverage of Retired Federal Judges on Active Duty

    Notwithstanding section 101(d) of Pub. L. 98-21, set out as an 
Effective Date of 1983 Amendment note above, the amendment of this 
section by section 101(c)(1) of Pub. L. 98-21 is applicable only with 
respect to remuneration paid after Dec. 31, 1985, with remuneration paid 
prior to Jan. 1, 1986, under section 371(b) of Title 28, Judiciary and 
Judicial Procedure, to an individual performing service under section 
294 of Title 28 not to be included in the term ``wages'' for purposes of 
this section or section 3121(a) of Title 26, Internal Revenue Code, see 
section 4 of Pub. L. 98-118, set out as a note under section 3121 of 
Title 26.


     Payments Under State Temporary Disability Law To Be Treated as 
                        Remuneration for Service

    For purposes of applying this section with respect to the 
parenthetical matter contained in subsec. (b)(2) of this section, 
payments under a State temporary disability law to be treated as 
remuneration for service, see section 3(e) of Pub. L. 97-123, set out as 
a note under section 3121 of Title 26, Internal Revenue Code.


                 Services for Cooperatives Prior to 1951

    Section 110 of act Aug. 28, 1950, provided that: ``In any case in 
which--
        ``(1) an individual has been employed at any time prior to 1951 
    by organizations enumerated in the first sentence of section 101(12) 
    of the Internal Revenue Code [1939].
        ``(2) the service performed by such individual during the time 
    he was so employed constituted agricultural labor as defined in 
    section 209(l) of the Social Security Act [former subsec. (l) of 
    this section] and section 1426(h) of the Internal Revenue Code 
    [1939], as in effect prior to the enactment of this Act [Aug. 28, 
    1950], and such service would, but for the provisions of such 
    sections, have constituted employment for the purposes of title II 
    of the Social Security Act [this subchapter] and subchapter A of 
    chapter 9 of such Code [1939].
        ``(3) the taxes imposed by sections 1400 and 1410 of the 
    Internal Revenue Code [1939] have been paid with respect to any part 
    of the remuneration paid to such individual by such organization for 
    such service and the payment of such taxes by such organization has 
    been made in good faith upon the assumption that such service did 
    not constitute agricultural labor as so defined, 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 be deemed to constitute remuneration for employment as 
defined in section 209(b) of the Social Security Act [former subsec. (b) 
of this section] as in effect prior to the enactment of this Act [Aug. 
28, 1950] (but it shall not constitute wages for purposes of deductions 
under section 203 of such Act [section 403 of this title] for months for 
which benefits under title II of such Act [this subchapter] have been 
certified and paid prior to the enactment of this act.''


                   Refunds or Credits for Overpayments

    Section 3 of act Apr. 20, 1948, provided that: ``If any amount paid 
prior to the date of the enactment of this Act [Apr. 20, 1948] 
constitutes an overpayment of tax solely by reason of an amendment made 
by this Act [amending this section], no refund or credit shall be made 
or allowed with respect to the amount of such overpayment.''


                            Cross References

    Correlation of payments under Railroad Retirement Act and crediting 
railroad industry service under this subchapter in certain cases, see 
sections 231b, 231q, 231r of Title 45, Railroads.
    Definitions under Internal Revenue Code, see section 7701 of Title 
26, Internal Revenue Code.
    Taxes on services rendered by employees of international 
organizations prior to Jan. 1, 1946, see note set out under section 401 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 403, 405, 413, 415, 417, 
418, 424a, 430 of this title; title 5 sections 5901, 8440; title 26 
section 7701; title 29 section 206; title 38 section 1301; title 45 
sections 231, 231b, 231e.
