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Treasury Regulations (26 C.F.R.)

26 CFR § 31.3127-1

Exemption for employers and their employees if both are members of religious faiths opposed to participation in Social Security Act programs.

Official textecfr.govlast amended

# (a)

Exemption—(1) Employer. Except as provided in paragraph (b) of this section, an employer is exempt from the taxes imposed by section 3111 on wages paid to an employee if—

(i) The employer (or if the employer is a partnership, each partner therein) and its employee are members of a recognized religious sect or division described in section 1402(g)(1);

(ii) Both the employer (or if the employer is a partnership, each partner therein) and the employee adhere to the tenets and teachings of that sect; and

(iii) Both the employer and the employee have filed and had approved applications under section 3127(b) for exemption from the taxes imposed by sections 3111 and 3101.

(2) Employee. If an employer is exempt from the taxes imposed by section 3111 under paragraph (a)(1) of this section, then each employee described in paragraph (a)(1) of this section is exempt from the taxes imposed by section 3101 on the wages received with respect to employment with that employer.

# (b) Corporation.

Services performed in the employ of a corporation are not within the exemption described in paragraph (a) of this section, except that services performed in the employ of an entity that is treated as a corporation under § 301.7701-2(c)(2)(iv)(B) of this chapter may qualify for the exemption if the requirements of the exemption are otherwise met. An entity that is treated as a corporation under § 301.7701-2(c)(2)(iv)(B) of this chapter is not treated as the employer for purposes of applying section 3127 and this section. For purposes of applying section 3127 and paragraph (a) of this section, the owner of an entity that is treated as a corporation under § 301.7701-2(c)(2)(iv)(B) of this chapter is treated as the employer.

# (c) Effective/applicability date.

This section applies to wages paid on or after November 1, 2011. However, taxpayers may apply this section to wages paid on or after January 1, 2009.

[T.D. 9670, 79 FR 36206, June 26, 2014]

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In this part (40 sections)
  1. 31.3121(c)-1 · (c)-1 Included and excluded services.
  2. 31.3121(d)-1 · (d)-1 Who are employees.
  3. 31.3121(d)-2 · (d)-2 Who are employers.
  4. 31.3121(e)-1 · (e)-1 State, United States, and citizen.
  5. 31.3121(f)-1 · (f)-1 American vessel and aircraft.
  6. 31.3121(g)-1 · (g)-1 Agricultural labor.
  7. 31.3121(h)-1 · (h)-1 American employer.
  8. 31.3121(i)-1 · (i)-1 Computation to nearest dollar of cash remuneration…
  9. 31.3121(i)-2 · (i)-2 Computation of remuneration for service performed…
  10. 31.3121(i)-3 · (i)-3 Computation of remuneration for service performed…
  11. 31.3121(i)-4 · (i)-4 Computation of remuneration for service performed…
  12. 31.3121(j)-1 · (j)-1 Covered transportation service.
  13. 31.3121(l)-1 · (l)-1 Agreements entered into by domestic corporations…
  14. 31.3121(o)-1 · (o)-1 Crew leader.
  15. 31.3121(q)-1 · (q)-1 Tips included for employee taxes.
  16. 31.3121(r)-1 · (r)-1 Election of coverage by religious orders.
  17. 31.3121(s)-1 · (s)-1 Concurrent employment by related corporations with…
  18. 31.3121(v)(2)-1 · (v)(2)-1 Treatment of amounts deferred under certain…
  19. 31.3121(v)(2)-2 · (v)(2)-2 Effective dates and transition rules.
  20. 31.3123-1 · Deductions by an employer from remuneration of an employee.
  21. 31.3127-1 · Exemption for employers and their employees if both are…
  22. 31.3131-1 · Recapture of credits.
  23. 31.3132-1 · Recapture of credits.
  24. 31.3134-1 · Recapture of credits.
  25. 31.3201-1 · Measure of employee tax.
  26. 31.3201-2 · Rates and computation of employee tax.
  27. 31.3202-1 · Collection of, and liability for, employee tax.
  28. 31.3211-1 · Measure of employee representative tax.
  29. 31.3211-2 · Rates and computation of employee representative tax.
  30. 31.3211-3 · Employee representative supplemental tax.
  31. 31.3212-1 · Determination of compensation.
  32. 31.3221-1 · Measure of employer tax.
  33. 31.3221-2 · Rates and computation of employer tax.
  34. 31.3221-3 · Supplemental tax.
  35. 31.3221-4 · Exception from supplemental tax.
  36. 31.3221-5 · Recapture of credits under the Families First Coronavirus…
  37. 31.3231(a)-1 · (a)-1 Who are employers.
  38. 31.3231(b)-1 · (b)-1 Who are employees.
  39. 31.3231(c)-1 · (c)-1 Who are employee representatives.
  40. 31.3231(d)-1 · (d)-1 Service.
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