American Samoa § 11.0519 - Section 3401 amended.

§ 11.0519. Section 3401 amended.

Section 3401, relating to definitions for the collection of income tax at source on wages, is amended to read as follows: “SEC. 3401 —DEFINITIONS. (a) Wages. For purposes of this chapter, the term “wages” means all remuneration (other than fees paid to a public official) paid in cash for services performed by an employee for his employer; except that such term shall not include remuneration paid: (1) For active service as a member of the Armed Forces of the United States; or (2) For agricultural labor (as defined in section 3121 (g)); or (3) For service not in the course of the employer’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $10 or more and such service is performed by an individual who is regularly employed by such employer to perform such service. For purposes of this paragraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if: (A) On each of some 24 days during such quarter such individual performs for such employer for some portion of the day service not in the course of the employer’s trade or business; or (B) Such individual was regularly employed (as determined under subparagraph (A), by such employer in the performance, of such services during the preceding calendar quarter; or (4) For services for a government (other than American Samoa) or any agency thereof or an international organization; or (5) For services for American Samoa or any agency thereof performed by a citizen or resident of the United States; or (6) For services performed by a nonresident alien individual; or (7)(A) For services for an employer (other than American Samoa or any agency thereof) performed by a citizen of American Samoa, if, at the time of the payment of such remuneration it is reasonable to believe that such remuneration will be excluded from gross income under section 911; or (B) For services performed in a foreign country or in a possession of the United States (other than American Samoa) by a citizen of American Samoa if, at the time of payment of such remuneration, the employer is required by the law of such foreign country or possession of the United States to withhold income tax upon such remuneration; or (C) For services for an employer performed by a citizen or resident of American Samoa within Puerto Rico, if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of Puerto Rico; or (8) For services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; or (9) To, or on behalf of, an employee or his beneficiary: (A) From or to a trust described in section 401(e) which is exempt from tax under section 501(a) at the time of such payment 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 401(a)(3), (4), (5), and (6); or (10) For services performed as a volunteer or volunteer leader within the meaning of the Peace Corps Act of the United States. (b) Payroll period. For purposes of this chapter, the term “payroll period” means a period for which a payment of wages is ordinarily made to the employee by his employer, and the term “miscellaneous payroll period” means a payroll period other than a daily, weekly, biweekly, semimonthly, quarterly, semiannual, or annual payroll period. (c) Employee. For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of American Samoa or any agency thereof. The term “employee” also includes an officer of a corporation. (d) Employer. For purposes of this chapter, the term “employer” means the person for whom an individual performs or performed any services, of whatever nature, as the em-ployee of such person, except that: (1) If the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term “employer” (except for purposes of subsection (a)) means the person having control of the payment of such wages; (2) In the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within American Samoa, the term “employer” (except for purpose of subsection (a)) means such person. (e) Number of withholding exemptions claimed. For purposes of this chapter, the term “number of withholding exemptions claimed” means the number of withholding exemptions in a withholding exemption certificate in effect under section 3402(f). If no such certificate is in effect, the number of withholding exemptions claimed shall be considered to be zero, and the employer shall deduct and withhold upon any wages a tax equal to 1 8 percent of such wages.