Us Code § 3127 - Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs
Full text of Us Code United States Code § 3127 — Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs, with citation guidance and answers to common questions.
§ 3127. Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs
(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 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; Pub. L. 115–141, div. U, title IV, §401(b)(35), Mar. 23, 2018, 132 Stat. 1204.)
Editorial Notes
References in Text
Section 203 of the Social Security Act, referred to in subsec. (b)(3), is classified to section 403 of Title 42, The Public Health and Welfare.
Prior Provisions
A prior section 3127 was renumbered section 3128 of this title.
Amendments
2018—Subsec. (b)(3). Pub. L. 115–141 struck out "or 222(b)" after "section 203".
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).
Statutory Notes and Related Subsidiaries
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.
Savings Provision
For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.
About This Section
26 U.S.C. § 3127 is part of Title 26 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
This section may be cited in legal writing as 26 U.S.C. § 3127. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.
How to Read This Statute
Statutes are organized by title, chapter, section, and subsection. Pay attention to words like "shall," "may," "and," and "or," because they determine whether a requirement is mandatory or permissive and whether multiple conditions must all be met. Historical notes and amendments often appear at the end of a section.
Using This Page
This page is intended for research and educational use. Lawyers, students, journalists, and compliance professionals can use it as a starting point, but should always verify the current text through an official government source before relying on it for legal advice, filings, or compliance decisions.