7th trump
22nd June 2010, 09:44 AM
Part 1
Ok Quantum for your edification of the tax code lets start with section 6051 so the both of us, and those reading, can be on the same level of understanding. Section 6051 is about the requirement of issueing W2's and whats information is to be on the W2.
http://www.law.cornell.edu/uscode/26/usc_sec_26_00006051----000-.html
TITLE 26 > Subtitle F > CHAPTER 61 > Subchapter A > PART III > Subpart C > § 6051
§ 6051. Receipts for employees
(a) Requirement
Every person required to deduct and withhold from an employee a tax under section 3101 or 3402, or who would have been required to deduct and withhold a tax under section 3402 (determined without regard to subsection (n)) if the employee had claimed no more than one withholding exemption, or every employer engaged in a trade or business who pays remuneration for services performed by an employee, including the cash value of such remuneration paid in any medium other than cash, shall furnish to each such employee in respect of the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or, if his employment is terminated before the close of such calendar year, within 30 days after the date of receipt of a written request from the employee if such 30-day period ends before January 31, a written statement showing the following:
(1) the name of such person,
(2) the name of the employee (and his social security account number if wages as defined in section 3121 (a) have been paid),
(3) the total amount of wages as defined in section 3401 (a),
(4) the total amount deducted and withheld as tax under section 3402,
(5) the total amount of wages as defined in section 3121 (a),
(6) the total amount deducted and withheld as tax under section 3101,
(7) the total amount paid to the employee under section 3507 (relating to advance payment of earned income credit),
(8) the total amount of elective deferrals (within the meaning of section 402 (g)(3)) and compensation deferred under section 457, including the amount of designated Roth contributions (as defined in section 402A),
(9) the total amount incurred for dependent care assistance with respect to such employee under a dependent care assistance program described in section 129 (d),
(10) in the case of an employee who is a member of the Armed Forces of the United States, such employee’s earned income as determined for purposes of section 32 (relating to earned income credit),
(11) the amount contributed to any Archer MSA (as defined in section 220(d)) of such employee or such employee’s spouse,
(12) the amount contributed to any health savings account (as defined in section 223(d)) of such employee or such employee’s spouse, and
(13) the total amount of deferrals for the year under a nonqualified deferred compensation plan (within the meaning of section 409A (d)).
In the case of compensation paid for service as a member of a uniformed service, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121 (a), computed in accordance with such section and section 3121 (i)(2). In the case of compensation paid for service as a volunteer or volunteer leader within the meaning of the Peace Corps Act, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121 (a), computed in accordance with such section and section 3121 (i)(3). In the case of tips received by an employee in the course of his employment, the amounts required to be shown by paragraphs (3) and (5) shall include only such tips as are included in statements furnished to the employer pursuant to section 6053 (a). The amounts required to be shown by paragraph (5) shall not include wages which are exempted pursuant to sections 3101 (c) and 3111 (c) from the taxes imposed by sections 3101 and 3111. In the case of the amounts required to be shown by paragraph (13), the Secretary may (by regulation) establish a minimum amount of deferrals below which paragraph (13) does not apply......................
Now the first sentence of 6051 stipulates every person required to deduct and withhold a tax from an employee under sections 3101 or 3402 shall furnish a written statement showing the following. Also take note what has been bolded.
For the most part, many Americans do not have much on a W2 except how much 3121(a) "wages" were made (line 5) to show the amount deducted for FICA (line 6) and how much 3401(a) "wages" (line 3) has been made to show how much has been deducted (line 4) for federal income taxes.
Quantum, you are more than welcome to review the rest of the requirements, but for practicle purposes all that is needed to demonstrate the law is what has been already mentioned as most Americans fall under being 26USC 3121(b) "employed" outside of government employment besides whats read about earning tips.
So with that said let go to section 3101 and dive into it.
http://www.law.cornell.edu/uscode/26/usc_sec_26_00003101----000-.html
TITLE 26 > Subtitle C > CHAPTER 21 > Subchapter A > § 3101
§ 3101. Rate of tax
(a) Old-age, survivors, and disability insurance
In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section 3121 (a)) received by him with respect to employment (as defined in section 3121 (b))— ........................
Statute 3101 is the liability statute for paying income taxes on your labor, which unfortunately for most Americans, happens to be the most misunderstood and ignored statute. Liability to pay income taxes starts with statute 3101 because 3101 imposes a tax for earning 3121(a) "wages" that are credited, in quarterly incriments, into each inmdividual SS account. Its this statute because of participating in Social Security that starts the reporting of income into the system. Not only does Social Security start the reporting of income into the governmental system it also defines what income is. More on that later, but yes, the age old arguenment that income is not defined is settled that Social Security in fact defines what income is or more importantly what it is not! Social Security defines income by defining what is not 3121(a) "wages" for the purpose of crediting your SS account. But like I said quantum "more on that later" as it comes into the equation later on. Right now you need to understand what pulls you into the system for the IRS to issue a refund or notice of deficiency or tax bill.
The onset of this statute it clearly states "in addition to other taxes". What Congress is telling the American people (if they read the law) is that not only are each and every participating American in the SS program taxed at 3101 and credited to their SS accoun,t but other additional taxes are also hereby imposed for participating in SS for earning 3121(a) "wages" for the benefits from the federal government with respect to Social Security's "employment" as defined in section 3121(b).
To recap 3101, 3101 is stating two things based on earning 3121(a) "wages" with respect to "employment" as defined in section 3121(b).
The most obvious of the two is the fact that you are imposed an old-age, survivors, and disabiltiy insurance tax for earning 3121(a) "wages", basical the purpose and reason of Social Security. The second attribute of section 3101 is the fact you are taxed additional taxes based on 3121(a) "wages" with respect to 3121(b) "employment" over and above the old-age, disabiltiy and survivors insurance tax, but what might those additional taxes be? Well you need to go back to the section 6051 to find out what is listed on your W2.
What other taxes besides state taxes, if any, is listed on the W2. You can say medicare taxes are additional taxes imposed and that would be a true statement, but medicare is a part of the "old-age" insurance, so what else is deducted and taxed from you paycheck?
Look at line (4) of section 6051 to find out. Line (4) is the amount deducted for being imposed a tax at section 3402. What is section 3402?
TITLE 26 > Subtitle C > CHAPTER 24 > § 3402
Income tax collected at source
How Current is This? (a) Requirement of withholding
(1) In general
Except as otherwise provided in this section, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with tables or computational procedures prescribed by the Secretary. Any tables or procedures prescribed under this paragraph shall—
(A) apply with respect to the amount of wages paid during such periods as the Secretary may prescribe, and
(B) be in such form, and provide for such amounts to be deducted and withheld, as the Secretary determines to be most appropriate to carry out the purposes of this chapter and to reflect the provisions of chapter 1 applicable to such periods.
(2) Amount of wages
For purposes of applying tables or procedures prescribed under paragraph (1), the term “the amount of wages†means the amount by which the wages exceed the number of withholding exemptions claimed multiplied by the amount of one such exemption. The amount of each withholding exemption shall be equal to the amount of one personal exemption provided in section 151 (b), prorated to the payroll period. The maximum number of withholding exemptions permitted shall be calculated in accordance with regulations prescribed by the Secretary under this section, taking into account any reduction in withholding to which an employee is entitled under this section.
What is "making payments of wages"?
Well lets dive into both sections 3121(a) and 3401(a) "wages" to find out just what is all the fuss around these statutory "wages"!
(Btw, This is where I'll show what is "income" and what is not "income". Its really quite simple as the tax laws make it easy to understand because its in the details.)
First lets start with 3121(a) "wages" and then go to 3401(a) "wages".
§ 3121. Definitions
(a) Wages
For purposes of this chapter, the term “wages†means all remuneration for employment, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include—
(1) in the case of the taxes imposed by sections 3101 (a) and 3111 (a) that part of the remuneration which, after remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) with respect to employment has been paid to an individual by an employer during the calendar year with respect to which such contribution and benefit base is effective, is paid to such individual by such employer during such calendar year. If an employer (hereinafter referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of another employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and immediately after the acquisition employs in his trade or business an individual who immediately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining whether the successor employer has paid remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) to such individual during such calendar year, any remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment paid (or considered under this paragraph as having been paid) to such individual by such predecessor during such calendar year and prior to such acquisition shall be considered as having been paid by such successor employer;
(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 subparagraph shall exclude from the term “wages†only payments which are received under a workman’s compensation law), or
(B) medical or hospitalization expenses in connection with sickness or accident disability, or
(C) death, except that this paragraph 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;
[(3) Repealed. Pub. L. 98–21, title III, § 324(a)(3)(B), Apr. 20, 1983, 97 Stat. 123]
(4) 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 6 calendar months following the last calendar month in which the employee worked for such employer;
(5) any payment made to, or on behalf of, an employee or his beneficiary—
(A) from or to a trust described in section 401 (a) 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,
(B) under or to an annuity plan which, at the time of such payment, is a plan described in section 403 (a),
(C) under a simplified employee pension (as defined in section 408 (k)(1)), other than any contributions described in section 408 (k)(6),
(D) under or to an annuity contract described in section 403 (b), 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),
Dont know if you caught it Quantum, but the first paragraph of 3121(a) tells you what 3121(a) "wages" are and basically what "income" is. Real simple wasnt it? Its so simple it only took 13 words to define.
3121(a) "wages" means all renumeration for "employment" except that such term shall not include—.........covers a braod scope of labor doesnt it besides the exceptions not included?
What it is saying is that everything you earn after signing a W4 is considered as 3121(a) "wages" except that such term shall not include............................what Quantum?
There is more written to defined what is not 3121(a) "wages" than there is defining what 3121(a) "wages" are because its that simple to define 3121(a) "wages" by defining what it is not.
You've heard the old saying that common sense goes a long ways haven't you Quantum?
Well if common sense is telling me that if 3121(a) "wages" doesnt include agricultural work from 3121(b)(1) "employment" then no W4 can be submitted to the employer from the employee to treat this agricultural work as "employment" to earn statutory "wages" for it to be logged into the federal government tracking system by the SSA to credit an account can it?
And since its the SSA that inputs what income you earn in the form of 3121(a) "wages" which of course if you are not participating in Social Security to earn 3121(a) "wages" or legally exempt from filing a W4 the IRS doesnt have squat do they? If you are not participating in Social Security then there is no ssn on file and you legally cannot file a 1040 without a ssn. So which is it Quantum does the egg come before the chicken or not because the IRS cannot force you into participating in Social Security that doesnt have a mandatory clause in it. The IRS is nothing more than the collection dept of the US Treasury. In order for them to collect it must first be in the system that you earned 3121(a) "wages" for it to be deemed 3401(a) "wages" for the imposition of income.
Basically what I'm saying is that there is no legal income reporting on is type of agricultural labor!
http://www.law.cornell.edu/uscode/26/usc_sec_26_00003121----000-.html
3121(b)
Employment
For purposes of this chapter, the term “employment†means any service, of whatever nature, performed
(A) by an employee for the person employing him, irrespective of the citizenship or residence of either,
(i) within the United States, or
(ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, or
(B) outside the United States by a citizen or resident of the United States as an employee for an American employer (as defined in subsection (h)), or (C) if it is service, regardless of where or by whom performed, which is designated as employment or recognized as equivalent to employment under an agreement entered into under section 233 of the Social Security Act; except that such term shall not include—
(1) service performed by foreign agricultural workers lawfully admitted to the United States from the Bahamas, Jamaica, and the other British West Indies, or from any other foreign country or possession thereof, on a temporary basis to perform agricultural labor;
(2) domestic service performed in a local college club, or local chapter of a college fraternity or sorority, by a student who is enrolled and is regularly attending classes at a school, college, or university;
So to put this into prespective this agricultural labor if its not required to have a W4 submitted to the employer shouldnt, by law, be considered for deduction of federal income taxes correct?
Well guess what?
Its not!
Ok Quantum for your edification of the tax code lets start with section 6051 so the both of us, and those reading, can be on the same level of understanding. Section 6051 is about the requirement of issueing W2's and whats information is to be on the W2.
http://www.law.cornell.edu/uscode/26/usc_sec_26_00006051----000-.html
TITLE 26 > Subtitle F > CHAPTER 61 > Subchapter A > PART III > Subpart C > § 6051
§ 6051. Receipts for employees
(a) Requirement
Every person required to deduct and withhold from an employee a tax under section 3101 or 3402, or who would have been required to deduct and withhold a tax under section 3402 (determined without regard to subsection (n)) if the employee had claimed no more than one withholding exemption, or every employer engaged in a trade or business who pays remuneration for services performed by an employee, including the cash value of such remuneration paid in any medium other than cash, shall furnish to each such employee in respect of the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or, if his employment is terminated before the close of such calendar year, within 30 days after the date of receipt of a written request from the employee if such 30-day period ends before January 31, a written statement showing the following:
(1) the name of such person,
(2) the name of the employee (and his social security account number if wages as defined in section 3121 (a) have been paid),
(3) the total amount of wages as defined in section 3401 (a),
(4) the total amount deducted and withheld as tax under section 3402,
(5) the total amount of wages as defined in section 3121 (a),
(6) the total amount deducted and withheld as tax under section 3101,
(7) the total amount paid to the employee under section 3507 (relating to advance payment of earned income credit),
(8) the total amount of elective deferrals (within the meaning of section 402 (g)(3)) and compensation deferred under section 457, including the amount of designated Roth contributions (as defined in section 402A),
(9) the total amount incurred for dependent care assistance with respect to such employee under a dependent care assistance program described in section 129 (d),
(10) in the case of an employee who is a member of the Armed Forces of the United States, such employee’s earned income as determined for purposes of section 32 (relating to earned income credit),
(11) the amount contributed to any Archer MSA (as defined in section 220(d)) of such employee or such employee’s spouse,
(12) the amount contributed to any health savings account (as defined in section 223(d)) of such employee or such employee’s spouse, and
(13) the total amount of deferrals for the year under a nonqualified deferred compensation plan (within the meaning of section 409A (d)).
In the case of compensation paid for service as a member of a uniformed service, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121 (a), computed in accordance with such section and section 3121 (i)(2). In the case of compensation paid for service as a volunteer or volunteer leader within the meaning of the Peace Corps Act, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121 (a), computed in accordance with such section and section 3121 (i)(3). In the case of tips received by an employee in the course of his employment, the amounts required to be shown by paragraphs (3) and (5) shall include only such tips as are included in statements furnished to the employer pursuant to section 6053 (a). The amounts required to be shown by paragraph (5) shall not include wages which are exempted pursuant to sections 3101 (c) and 3111 (c) from the taxes imposed by sections 3101 and 3111. In the case of the amounts required to be shown by paragraph (13), the Secretary may (by regulation) establish a minimum amount of deferrals below which paragraph (13) does not apply......................
Now the first sentence of 6051 stipulates every person required to deduct and withhold a tax from an employee under sections 3101 or 3402 shall furnish a written statement showing the following. Also take note what has been bolded.
For the most part, many Americans do not have much on a W2 except how much 3121(a) "wages" were made (line 5) to show the amount deducted for FICA (line 6) and how much 3401(a) "wages" (line 3) has been made to show how much has been deducted (line 4) for federal income taxes.
Quantum, you are more than welcome to review the rest of the requirements, but for practicle purposes all that is needed to demonstrate the law is what has been already mentioned as most Americans fall under being 26USC 3121(b) "employed" outside of government employment besides whats read about earning tips.
So with that said let go to section 3101 and dive into it.
http://www.law.cornell.edu/uscode/26/usc_sec_26_00003101----000-.html
TITLE 26 > Subtitle C > CHAPTER 21 > Subchapter A > § 3101
§ 3101. Rate of tax
(a) Old-age, survivors, and disability insurance
In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section 3121 (a)) received by him with respect to employment (as defined in section 3121 (b))— ........................
Statute 3101 is the liability statute for paying income taxes on your labor, which unfortunately for most Americans, happens to be the most misunderstood and ignored statute. Liability to pay income taxes starts with statute 3101 because 3101 imposes a tax for earning 3121(a) "wages" that are credited, in quarterly incriments, into each inmdividual SS account. Its this statute because of participating in Social Security that starts the reporting of income into the system. Not only does Social Security start the reporting of income into the governmental system it also defines what income is. More on that later, but yes, the age old arguenment that income is not defined is settled that Social Security in fact defines what income is or more importantly what it is not! Social Security defines income by defining what is not 3121(a) "wages" for the purpose of crediting your SS account. But like I said quantum "more on that later" as it comes into the equation later on. Right now you need to understand what pulls you into the system for the IRS to issue a refund or notice of deficiency or tax bill.
The onset of this statute it clearly states "in addition to other taxes". What Congress is telling the American people (if they read the law) is that not only are each and every participating American in the SS program taxed at 3101 and credited to their SS accoun,t but other additional taxes are also hereby imposed for participating in SS for earning 3121(a) "wages" for the benefits from the federal government with respect to Social Security's "employment" as defined in section 3121(b).
To recap 3101, 3101 is stating two things based on earning 3121(a) "wages" with respect to "employment" as defined in section 3121(b).
The most obvious of the two is the fact that you are imposed an old-age, survivors, and disabiltiy insurance tax for earning 3121(a) "wages", basical the purpose and reason of Social Security. The second attribute of section 3101 is the fact you are taxed additional taxes based on 3121(a) "wages" with respect to 3121(b) "employment" over and above the old-age, disabiltiy and survivors insurance tax, but what might those additional taxes be? Well you need to go back to the section 6051 to find out what is listed on your W2.
What other taxes besides state taxes, if any, is listed on the W2. You can say medicare taxes are additional taxes imposed and that would be a true statement, but medicare is a part of the "old-age" insurance, so what else is deducted and taxed from you paycheck?
Look at line (4) of section 6051 to find out. Line (4) is the amount deducted for being imposed a tax at section 3402. What is section 3402?
TITLE 26 > Subtitle C > CHAPTER 24 > § 3402
Income tax collected at source
How Current is This? (a) Requirement of withholding
(1) In general
Except as otherwise provided in this section, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with tables or computational procedures prescribed by the Secretary. Any tables or procedures prescribed under this paragraph shall—
(A) apply with respect to the amount of wages paid during such periods as the Secretary may prescribe, and
(B) be in such form, and provide for such amounts to be deducted and withheld, as the Secretary determines to be most appropriate to carry out the purposes of this chapter and to reflect the provisions of chapter 1 applicable to such periods.
(2) Amount of wages
For purposes of applying tables or procedures prescribed under paragraph (1), the term “the amount of wages†means the amount by which the wages exceed the number of withholding exemptions claimed multiplied by the amount of one such exemption. The amount of each withholding exemption shall be equal to the amount of one personal exemption provided in section 151 (b), prorated to the payroll period. The maximum number of withholding exemptions permitted shall be calculated in accordance with regulations prescribed by the Secretary under this section, taking into account any reduction in withholding to which an employee is entitled under this section.
What is "making payments of wages"?
Well lets dive into both sections 3121(a) and 3401(a) "wages" to find out just what is all the fuss around these statutory "wages"!
(Btw, This is where I'll show what is "income" and what is not "income". Its really quite simple as the tax laws make it easy to understand because its in the details.)
First lets start with 3121(a) "wages" and then go to 3401(a) "wages".
§ 3121. Definitions
(a) Wages
For purposes of this chapter, the term “wages†means all remuneration for employment, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include—
(1) in the case of the taxes imposed by sections 3101 (a) and 3111 (a) that part of the remuneration which, after remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) with respect to employment has been paid to an individual by an employer during the calendar year with respect to which such contribution and benefit base is effective, is paid to such individual by such employer during such calendar year. If an employer (hereinafter referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of another employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and immediately after the acquisition employs in his trade or business an individual who immediately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining whether the successor employer has paid remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) to such individual during such calendar year, any remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment paid (or considered under this paragraph as having been paid) to such individual by such predecessor during such calendar year and prior to such acquisition shall be considered as having been paid by such successor employer;
(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 subparagraph shall exclude from the term “wages†only payments which are received under a workman’s compensation law), or
(B) medical or hospitalization expenses in connection with sickness or accident disability, or
(C) death, except that this paragraph 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;
[(3) Repealed. Pub. L. 98–21, title III, § 324(a)(3)(B), Apr. 20, 1983, 97 Stat. 123]
(4) 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 6 calendar months following the last calendar month in which the employee worked for such employer;
(5) any payment made to, or on behalf of, an employee or his beneficiary—
(A) from or to a trust described in section 401 (a) 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,
(B) under or to an annuity plan which, at the time of such payment, is a plan described in section 403 (a),
(C) under a simplified employee pension (as defined in section 408 (k)(1)), other than any contributions described in section 408 (k)(6),
(D) under or to an annuity contract described in section 403 (b), 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),
Dont know if you caught it Quantum, but the first paragraph of 3121(a) tells you what 3121(a) "wages" are and basically what "income" is. Real simple wasnt it? Its so simple it only took 13 words to define.
3121(a) "wages" means all renumeration for "employment" except that such term shall not include—.........covers a braod scope of labor doesnt it besides the exceptions not included?
What it is saying is that everything you earn after signing a W4 is considered as 3121(a) "wages" except that such term shall not include............................what Quantum?
There is more written to defined what is not 3121(a) "wages" than there is defining what 3121(a) "wages" are because its that simple to define 3121(a) "wages" by defining what it is not.
You've heard the old saying that common sense goes a long ways haven't you Quantum?
Well if common sense is telling me that if 3121(a) "wages" doesnt include agricultural work from 3121(b)(1) "employment" then no W4 can be submitted to the employer from the employee to treat this agricultural work as "employment" to earn statutory "wages" for it to be logged into the federal government tracking system by the SSA to credit an account can it?
And since its the SSA that inputs what income you earn in the form of 3121(a) "wages" which of course if you are not participating in Social Security to earn 3121(a) "wages" or legally exempt from filing a W4 the IRS doesnt have squat do they? If you are not participating in Social Security then there is no ssn on file and you legally cannot file a 1040 without a ssn. So which is it Quantum does the egg come before the chicken or not because the IRS cannot force you into participating in Social Security that doesnt have a mandatory clause in it. The IRS is nothing more than the collection dept of the US Treasury. In order for them to collect it must first be in the system that you earned 3121(a) "wages" for it to be deemed 3401(a) "wages" for the imposition of income.
Basically what I'm saying is that there is no legal income reporting on is type of agricultural labor!
http://www.law.cornell.edu/uscode/26/usc_sec_26_00003121----000-.html
3121(b)
Employment
For purposes of this chapter, the term “employment†means any service, of whatever nature, performed
(A) by an employee for the person employing him, irrespective of the citizenship or residence of either,
(i) within the United States, or
(ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, or
(B) outside the United States by a citizen or resident of the United States as an employee for an American employer (as defined in subsection (h)), or (C) if it is service, regardless of where or by whom performed, which is designated as employment or recognized as equivalent to employment under an agreement entered into under section 233 of the Social Security Act; except that such term shall not include—
(1) service performed by foreign agricultural workers lawfully admitted to the United States from the Bahamas, Jamaica, and the other British West Indies, or from any other foreign country or possession thereof, on a temporary basis to perform agricultural labor;
(2) domestic service performed in a local college club, or local chapter of a college fraternity or sorority, by a student who is enrolled and is regularly attending classes at a school, college, or university;
So to put this into prespective this agricultural labor if its not required to have a W4 submitted to the employer shouldnt, by law, be considered for deduction of federal income taxes correct?
Well guess what?
Its not!