50. X. PROJECT 1. Special eligibility requirement_ _. 3. National-"on" indicator... 2. Deletion of (a) unnecessary alternative computation; and 13, 36 13, 36 14, 36 [Material in brackets to be deleted; material in italics to be added] PROPOSED AMENDMENTS TO H.R. 15119 AND TECHNICAL EXPLANATION PART A-COVERAGE Amendment.-Section 101, page 1, line 11 through page 2, line 11, should be amended to read as follows: "DEFINITION OF EMPLOYER "SEC. 101. (a) Subsection (a) of section 3306 of the Internal Revenue Code of 1954 is amended to read as follows: "(a) EMPLOYER.- For purposes of this chapter, the term "employer" means, with respect to any calendar year, any person who[-] [" (1) during any calendar quarter in the calendar year paid wages of [$1,500] $300 or more [, or]. ["(2) On each of some 20 days during the calendar year, each day being in a different calendar week, employed at least one individual in employment for some portion of the day.'"] Explanation. The proposed change is designed to extend coverage to employers who have at least a $300 payroll in a quarter, as recommended by the Interstate Conference of Employment Security Agencies. Such a provision has several significant advantages over the provision of H.R. 15119 which contains alternative provisions of at least 20 weeks of work in a year or a quarterly payroll of $1,500. It would increase coverage by 1.55 million workers, 350,000 more than provided by the House bill, and would be easier to administer. The limitation of $300 in a quarter is high enough to avoid coverage of those only casually in employer status. It is the highest quarterly payroll limit now used by States which determine coverage solely by size of quarterly payroll. DEFINITION OF WAGES Amendment. (b) Subsection (b) of section 3306 of the Internal Revenue Code of 1954 is amended by adding at the end thereof a new paragraph (10) as follows: "(10) Any remuneration for employment as defined in section 3306(c)(1) unless the remuneration constitutes wages under section 3121(a)(8) (B) and was paid by an employer to an employee but only if such employee was paid by such employer such wages in the amount of at least $300 in any calendar quarter in a calendar year or in the immediately preceding calendar year." DEFINITION OF EMPLOYMENT Amendment. (c) Paragraph (1) of subsection (c) of section 3306 of the Internal Revenue Code of 1954 is amended to read as follows: "(1) agricultural labor (as defined in section 3306(k) unless performed for an employer who, in a calendar year or in the immediately preceding calendar year, paid wages under section 3121(a)(8) (B) for such labor to each of 50 employees." Explanation. The proposed additions in subsections (b) and (c) are designed to cover for Federal unemployment tax purposes farm employers who employ 50 or more workers reportable under FICA. Only the wages of those workers who were paid $300 in any calendar quarter, however, would be taxed and only such workers would be covered for unemployment insurance. The 50 or more workers requirement is designed to describe the large farm. The $300 quarterly payroll requirement is designed to eliminate migrant, casual, or intermittent workers. EFFECTIVE DATES [(b)] Amendment.-(d) The amendment made by subsection (a) shall apply with respect to remuneration paid after December 31, [1968] 1967. The amendments made by subsections (b) and (c) shall apply after December 31, 1968. Explanation. Subsection (a) changes the size of firm limitation in the definition of "employer." An earlier effective date of January 1, 1968 (instead of January 1, 1969, as in H.R. 15119), will present no problems, because the 13 States which would need to amend their laws to provide broader coverage have legislative sessions in 1967. The extension to large farms, however, would not be automatic in 20 States, several of which do not have a regular legislative session until 1968. Therefore, the effective date for this change is January 1, 1969. SECTION 105. STUDENTS ENGAGED IN WORK-STUDY PROGRAMS Amendment. Section 105, page 9, lines 2 through 16, should be amended to read as follows: SEC. 105. (a) Paragraph (10) of section 3306(c) of the Internal Revenue Code of 1954 is amended by striking out the semicolon at the end of subparagraph (B) and inserting in lieu thereof ", or" and by adding at the end thereof the following new subparagraph: "(C) service performed by an individual who is enrolled at [an] a nonprofit or public educational institution [within the meaning of section 151 (e) (4)] which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on, as a student in a full-time program, taken for credit at such institutions, which combines academic instruction with work experience, if such [institution has certified to the employer that such] service is an integral part of such program, and such institution has so certified to the employer, except that this paragraph shall not apply to service performed in a program established for or on behalf of an employer or group of employers." Explanation. The proposed changes are designed to clarify the language used in H.R. 15119 to assure that it carries out the intent of |