(a) General. If you work for a church or qualified church-controlled organization, as described in this section, your employer may elect to have your services excluded from employment. You would then be considered to be self-employed and special conditions would apply to you. See § 404.1068(f) for those special conditions. The employer's election of the exclusion must be made with the Internal Revenue Service in accordance with Internal Revenue Service procedures and must state that the church or church-controlled organization is opposed for religious reasons to the payment of Social Security employment taxes. The exclusion applies to current and future employees. If you work in an unrelated trade or business (within the meaning of section 513(a) of the Code) of the church or church-controlled organization, the exclusion does not apply to your services.
(b) What is a church. For purposes of this section the term church means a church, a convention or association of churches, or an elementary or secondary school which is controlled, operated, or principally supported by a church or by a convention or association of churches.
(c) What is a qualified church-controlled organization. For purposes of this section the term qualified church-controlled organization means any church-controlled organization exempt from income tax under section 501(c)(3) of the Code but does not include an organization which:
(1) Offers goods, services, or facilities for sale to the general public, other than on an incidental basis, or for other than a nominal charge which is substantially less than the cost of providing such goods, services, or facilities; and
(2) Normally receives more than 25 percent of its support from either governmental sources or receipts from admissions, sales of merchandise, performance of services or furnishing of facilities other than in an unrelated trade or business, or both.
[50 FR 36573, Sept. 9, 1985, as amended at 55 FR 7309, Mar. 1, 1990]
Notes of Decisions
Aubrey H. Thompson v. Caspar Weinberger, Sec'y of Health, Educ. & Welfare, 548 F.2d 1122 (4th Cir. 1976).
· cites it 5× “4 The regulation, 20 CFR 404.1026(a)(8), provides as follows: “(8) Amounts paid specifically — either as advances or reimbursements — for traveling or other bona fide ordinary and necessary expenses incurred or reasonably expected to be incurred in the business of the employer…”
Letz v. Weinberger, 401 F. Supp. 598 (D. Colo. 1975).
· cites it 3× “20 C.F.R. § 404.1026 (a) (2). 12 . Id. 13 .”
John Colby v. Patricia Roberts Harris, Sec'y of Health, Educ. & Welfare, 622 F.2d 644 (2d Cir. 1980).
“20 C.F.R. § 404.1026 (a)(8) provides: Amounts paid specifically — either as advances or reimbursements — for traveling or other bona fide ordinary and necessary expenses incurred or reasonably expected to be incurred in the business of the employer are not wages.”
Hatfield v. Richardson, 380 F. Supp. 1048 (D. Kan. 1974).
· cites it 2× “regulations and identify Hatfield’s expenses as such (20 C.F.R. 404.1026 (a)(8)) the expenses .”
Rowan Companies, Inc. v. United States, 624 F.2d 701 (5th Cir. 1980).
“1026(a)(6) of the Social Security Regulations on Federal Old-Age Survivors and Disability Insurance, 20 C.F.R. § 404.1026 (a)(6) (1979), to compute social security benefits on a base that includes the value of employer furnished meals.”
Katz v. Sullivan, 791 F. Supp. 968 (E.D.N.Y 1991).
“20 C.F.R. § 404.1026 (a)(2). In the instant case, the Secretary made no finding that Katz’ business income was due to "wages for services rendered.”
Livingstone v. Heckler, 618 F. Supp. 720 (D. Maryland 1985).
“The regulation was then codified as 20 C.F.R. § 404.1026 (a)(8).”
Somers v. Gardner, 254 F. Supp. 35 (E.D. Va. 1966).
“should be regarded as wages under 20 C.F.R. § 404.1026 (a) (9). This regulation provides for a “constructive payment” of wages where the wages have been credited or set apart to the employee and are in effect available to the employee upon his demand.”
LaBonne v. Heckler, 580 F. Supp. 558 (D. Minnesota 1984).
· cites it 2× “the wages must be credited to or set apart for the employee without any substantial limitation or restriction as to the time or manner of payment or condition upon which payment is to be made, and must be made available to him so that they may be drawn upon any time, and their…”
Colby v. Sec'y of Health, Educ. & Welfare, 489 F. Supp. 461 (S.D.N.Y. 1980).
· cites it 2× “20 C.F.R. § 404.1026 (a)(8). Colby claims that this mechanical approach to expenses wage-earners may deduct in calculating their earnings is not authorized by the Act.”
Kore v. Celebrezze, 342 F.2d 638 (7th Cir. 1965).
“” The fact that payments were from the association rather than from the theatres is immaterial because the latter were the sole contributors to the fund. According to section 209 of the Social Security Act, 42 U.”
Sayer v. Richardson, 360 F. Supp. 199 (W.D. La. 1973).
“4 (20 C.F.R. 404.1026(a)(8)) states with respect to the deductibility of business expenses from remuneration otherwise classified as wages: “(8) Amounts paid specifically — either as advances or reimbursements —for traveling or other bona fide ordinary and necessary expenses…”
— 20 C.F.R. § 404.1026(a) — 1 case
Hatfield v. Richardson, 380 F. Supp. 1048 (D. Kan. 1974).
“regulations and identify Hatfield’s expenses as such (20 C.F.R. 404.1026 (a)(8)) the expenses .”
— 20 C.F.R. § 404.1026(a)(8) — 2 cases
Aubrey H. Thompson v. Caspar Weinberger, Sec'y of Health, Educ. & Welfare, 548 F.2d 1122 (4th Cir. 1976).
“4 The regulation, 20 CFR 404.1026(a)(8), provides as follows: “(8) Amounts paid specifically — either as advances or reimbursements — for traveling or other bona fide ordinary and necessary expenses incurred or reasonably expected to be incurred in the business of the employer…”
Sayer v. Richardson, 360 F. Supp. 199 (W.D. La. 1973).
“4 (20 C.F.R. 404.1026(a)(8)) states with respect to the deductibility of business expenses from remuneration otherwise classified as wages: “(8) Amounts paid specifically — either as advances or reimbursements —for traveling or other bona fide ordinary and necessary expenses…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.