equipment, or clothing, as are commonly or frequently provided by employees. An investment in an automobile by an individual which is used primarily for his own transportation in connection with the performance of services for another person has no significance under this paragraph, since such investment is comparable to outlays for transportation by an individual performing similar services who does not own an automobile. Moreover, the investment in facilities for the transportation of the goods or commodities to which the services relate is to be excluded in determining the investment in a particular case. If an individual has a substantial investment in facilities of the requisite character, he is not an employee within the meaning of this paragraph, since a substantial investment of the requisite character standing alone is sufficient to exclude the individual from the employee concept under this paragraph.

(iv) If the services are not performed as part of a continuing relationship with the person for whom the services are performed, but are in the nature of a single transaction, the individual performing such services is not an employee of such person within the meaning of this paragraph. The fact that the services are not performed on consecutive workdays does not indicate that the services are not performed as part of a continuing relationship.

§ 31.3121 (d)-2 Who are employers. (a) Every person is an employer if he employs one or more employees. Neither the number of employees employed nor the period during which any such employee is employed is material for the purpose of determining whether the person for whom the services are performed is an employer.

(b) An employer may be an individual, a corporation, a partnership, a trust, an estate, a joint-stock company, an association, or a syndicate, group, pool, joint venture, or other unincorporated organization, group, or entity. A trust or estate, rather than the fiduciary acting for or on behalf of the trust or estate, is generally the employer.

(c) Although a person may be an employer under this section, services performed in his employ may be of such a nature, or performed under such circumstances, as not to constitute employment (see § 31.3121 (b)−3).

§ 31.3121 (e) Statutory provisions; definitions; State, United States, and citizen.

SEC. 3121. Definitions. *

*

(e) State, United States, and citizen. For purposes of this chapter

(1) State. The term "State" includes Alaska, Hawaii, the District of Columbia, Puerto Rico, and the Virgin Islands.

(2) United States. The term "United States" when used in a geographical sense includes Puerto Rico and the Virgin Islands. An individual who is a citizen of Puerto Rico (but not otherwise a citizen of the United States) shall be considered, for purposes of this section, as a citizen of the United States.

§ 31.3121 (e)-1 State, United States, and citizen. For purposes of the regulations in this subpart, the terms defined in section 3121 (e) have the meanings so assigned to them. When used in the regulations in this subpart, the term "United States", when used in a geographical sense, means the several States, the District of Columbia, the Territories of Alaska and Hawaii, the Virgin Islands, and Puerto Rico. The term "citizen of the United States" includes a citizen of the Virgin Islands or of Puerto Rico.

§ 31.3121 (f) Statutory provisions; definitions; American vessel and aircraft. SEC. 3121. Definitions.

(f) American vessel and aircraft. For purposes of this chapter, the term "American vessel" means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any State; and the term "American aircraft" means an aircraft registered under the laws of the United States.

§ 31.3121 (f)-1 American vessel and aircraft. (a) The term "American vessel" means any vessel which is documented (that is, registered, enrolled, or licensed) or numbered in conformity with the laws of the United States. It also includes any vessel which is neither documented nor numbered under the laws of the United States, nor documented under the laws of any foreign country, if the crew of such vessel is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of

the United States or of any State (including the District of Columbia, the Territory of Alaska or Hawaii, the Virgin Islands, or Puerto Rico). As used : herein, a citizen of the United States includes a citizen of the Virgin Islands or of Puerto Rico.

(b) The term "American aircraft" means any aircraft registered under the laws of the United States.

(c) For provisions relating to services performed outside the United States on or in connection with an American vessel or American aircraft, see paragraph (c) (2) of § 31.3121 (b)-3.

§ 31.3121 (g) Statutory provisions; definitions; agricultural labor.

SEC. 3121. Definitions. *

(g) Agricultural labor. For purposes of I this chapter, the term "agricultural labor" includes all service performed

(1) On a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife;

(2) In the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on & farm;

as

(3) In connection with the production or harvesting of any commodity defined as an agricultural commodity in section 15 (g) of the Agricultural Marketing Act, amended (46 Stat. 1550, sec. 3; 12 U. S. C. 1141j), or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes;

(4) (A) In the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity; but only if such operator produced more than onehalf of the commodity with respect to which such service is performed;

(B) In the employ of a group of operators of farms (other than a cooperative organization) in the performance of service described in subparagraph (A), but only if such operators produced all of the commodity with respect to which such service is performed. For purposes of this subparagraph, any unin

corporated group of operators shall be deemed a cooperative organization if the number of operators comprising such group is more than 20 at any time during the calendar quarter in which such service is performed;

(C) The provisions of subparagraphs (A) and (B) shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity

after its delivery to a terminal market for distribution for consumption; or

(5) On a farm operated for profit if such service is not in the course of the employer's trade or business or is domestic service in a private home of the employer.

As used in this subsection, the term "farm" includes stock, dairy, poultry, fruit, fur-.. bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultual commodities, and orchards.

SEC. 15. Miscellaneous provisions [Agricultural Marketing Act]. * * *

(g) As used in this Act, the term "agricultural commodity" includes * ** crude gum (oleoresin) from a living tree, and the following products as processed by the original producer of the crude gum (oleoresin) from which derived: Gum spirits of turpentine and gum rosin, as defined in the Naval Stores Act, approved March 3, 1923 [42 Stat. 1435; 7 U. S. C. 92 (c), (h)].

SEC. 2. [The Naval Stores Act.] when used in this Act

That,

§ 31.3121 (g)-1 Agricultural labor— (a) In general. (1) The term "agricultural labor" as defined in section 3121 (g) includes services of the character described in paragraphs (b), (c), (d), (e), and (f) of this section. In general, however, the term does not include services performed in connection with forestry, lumbering, or landscaping.

(2) The term "farm" as used in the regulations in this subpart includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, orchards, and such greenhouses and other similar structures as are used primarily for the raising of agricultural or horticultural commodities. Greenhouses and other similar structures used primarily for

other purposes (for example, display, storage, and fabrication of wreaths, corsages, and bouquets) do not constitute "farms".

(3) For provisions relating to the exceptions from employment provided with respect to services performed in connection with the production or harvesting of certain oleoresinous products and to services performed by certain foreign agricultural workers, see § 31.3121 (b) (1)-1. For provisions relating to the exclusion from wages of remuneration paid in any medium other than cash for agricultural labor and to the test for determining whether cash remuneration paid for agricultural labor constitutes wages, see § 31.3121 (a) (8)-1.

(b) Services described in section 3121 (g) (1). (1) Services performed on a farm by an employee of any person in connection with any of the following activities constitute agricultural labor: (i) The cultivation of the soil;

(ii) The raising, shearing, feeding caring for, training, or management of livestock, bees, poultry, fur-bearing animals, or wildlife; or

(iii) The raising or harvesting of any other agricultural or horticultural commodity.

(2) Services performed in connection with the production or harvesting of maple sap, or in connection with the raising or harvesting of mushrooms, or in connection with the hatching of poultry constitute agricultural labor only if such services are performed on a farm. Thus, services performed in connection with the operation of a hatchery, if not operated as part of a poultry or other farm, do not constitute agricultural labor.

(c) Services described in section 3121 (g) (2). (1) The following services performed by an employee in the employ of the owner or tenant or other operator of one or more farms constitute agricultural labor, provided the major part of such services is performed on a farm:

(i) Services performed in connection with the operation, management, conservation, improvement, or maintenance of any of such farms or its tools or equipment; or

(ii) Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane.

(2) The services described in subparagraph (1) (i) of this paragraph may in

clude, for example, services performed by carpenters, painters, mechanics, farm supervisors, irrigation engineers, bookkeepers, and other skilled or semiskilled workers, which contribute in any way to the conduct of the farm or farms, as such, operated by the person employing them, as distinguished from any other enterprise in which such person may be engaged.

(3) Since the services described in this paragraph must be performed in the employ of the owner or tenant or other operator of the farm, the term "agricul tural labor" does not include service performed by employees of a commercia painting concern, for example, which contracts with a farmer to renovate hi farm properties.

(d) Services described in section 312. (g) (3). Services performed by an em ployee in the employ of any person in connection with any of the following operations constitute agricultural labo without regard to the place where such services are performed:

(1) The ginning of cotton;

(2) The operation or maintenance o ditches, canals, reservoirs, or waterways not owned or operated for profit, use exclusively for supplying or storing wate for farming purposes; or

(3) The production or harvesting o crude gum (oleoresin) from a living tre or the processing of such crude gum int gum spirits of turpentine and gum rosin provided such processing is carried on b the original producer of such crude gum

(e) Services described in section 312 (g) (4). (1) Services performed by a employee in the handling, planting, dry ing, packing, packaging, processing freezing, grading, storing, or deliverin to storage or to market or to a carrie for transportation to market, of an agricultural or horticultural commodit constitute agricultural labor if:

(i) Such services are performed by th employee in the employ of an operato of a farm or in the employ of a group o operators of farms (other than a coop erative organization);

(ii) Such services are performed wit respect to the commodity in its unmanu factured state; and

(iii) Such operator produced mor than one-half of the commodity wit respect to which such services are per formed during the pay period, or suc group of operators produced all of th

commodity with respect to which such services are performed during the pay period.

(2) The term "operator of a farm” as used in this paragraph means an owner, tenant, or other person, in possession of a farm and engaged in the operation of such farm.

(3) The services described in this paragraph do not constitute agricultural labor if performed in the employ of a - cooperative organization. The term "organization" includes corporations, jointstock companies, and associations which are treated as corporations pursuant to section 7701 (a) (3) of the Internal Revenue Code. For purposes of this paragraph, any unincorporated group of operators shall be deemed a cooperative organization if the number of operators -comprising such group is more than 20 at any time during the calendar quarter in which the services involved are performed.

(4) Processing services which change the commodity from its raw or natural state do not constitute agricultural labor. For example, the extraction of juices from fruits or vegetables is a processing operation which changes the character of the fruits or vegetables from their raw or natural state and, therefore, does not constitute agricultural labor. Likewise, services performed in the processing of maple sap into maple sirup or maple sugar do not constitute agricultural labor. On the other hand, services rendered in the cutting and drying of fruits or vegetables are processing operations which do not change the character of the fruits or vegetables and, therefore, constitute agricultural labor, if the other requisite conditions are met. Services performed with respect to a commodity after its character has been I changed from its raw or natural state by a processing operation do not constitute agricultural labor.

(5) The term "commodity" refers to a single agricultural or horticultural product, for example, all apples are to be treated as a single commodity, while apples and peaches are to be treated as two separate commodities. The services with respect to each such commodity are to be considered separately in determining whether the condition set forth in subparagraph (1) (iii) of this paragraph has been satisfied. The portion of the commodity produced by an operator or group of operators with re

spect to which the services described in this paragraph are performed by a particular employee shall be determined on the basis of the pay period in which such services were performed by such employee.

(6) The services described in this paragraph do not include services performed in connection with commercial canning or commercial freezing or in connection with any commodity after its delivery to a terminal market for distribution for consumption. Moreover, since the services described in this paragraph must be rendered in the actual handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, of the commodity, such services do not, for example, include services performed as stenographers, bookkeepers, clerks, and other office employees, even though such services may be in connection with such activities. However, to the extent that the services of such individuals are performed in the employ of the owner or tenant or other operator of a farm and are rendered in major part on a farm, they may be within the provisions of paragraph (c) of this section.

(f) Services described in section 3121 (g) (5). (1) Services not in the course of the employers' trade or business (see paragraph (a) (1) of § 31.3121 (a) (7)−1) or domestic service in a private home of the employer (see paragraph (a) (2) of § 31.3121 (a) (7)-1 constitutes agricultural labor if such services are performed on a farm operated for profit. The determination whether remuneration for such services performed on a farm operated for profit constitutes wages is to be made under § 31.3121 (a) (8)-1 rather than under § 31.3121 (a) (7)-1.

(2) Generally, a farm is not operated for profit if it is occupied by the employer primarily for residential purposes, or is used primarily for the pleasure of the employer or his family such as for the entertainment of guests or as a hobby of the employer or his family.

§ 31.3121 (h) Statutory provisions; definitions; American employer.

SEC. 3121. Definitions. *

(h) American employer. For purposes of this chapter, the term "American employer" means an employer which is—

(1) The United States or any instrumentality thereof,

(2) An individual who is a resident of the United States,

(3) A partnership, if two-thirds or more of the partners are residents of the United States,

(4) A trust, if all of the trustees are residents of the United States, or

(5) A corporation organized under the laws of the United States or of any State.

§ 31.3121 (h)-1 American employer. (a) The term "American employer" means an employer which is (1) the United States or any instrumentality thereof, (2) an individual who is a resident of the United States (that is, the several States, the District of Columbia, the Territories of Alaska and Hawaii, the Virgin Islands, and Puerto Rico), (3) a partnership, if two-thirds or more of the partners are residents of the United States, (4) a trust, if all of the trustees are residents of the United States, or (5) a corporation organized under the laws of the United States or of any State (including the District of Columbia, the Territory of Alaska or Hawaii, the Virgin Islands, or Puerto Rico).

(b) For provisions relating to services performed outside the United States by a citizen of the United States as an employee for an American employer, see paragraph (c) (3) of § 31.3121 (b)-3 and paragraph (e) of § 31.3121 (b) (4)−1.

§ 31.3121 (i) Statutory provisions; definitions; computation of wages in certain cases.

SEC. 3121. Definitions.

(i) Computation of wages in certain cases. For purposes of this chapter, in the case of domestic service described in subsection (a) (7) (B), any payment of cash remuneration for such service which is more or less than a whole-dollar amount shall, under such conditions and to such extent as may be prescribed by regulations made under this chapter, be computed to the nearest dollar. For the purpose of the computation to the nearest dollar, the payment of a fractional part of a dollar shall be disregarded unless it amounts to one-half dollar or more, in which case it shall be increased to $1. The amount of any payment of cash remuneration so computed to the nearest dollar shall, in lieu of the amount actually paid, be deemed to constitute the amount of cash remuneration for purposes of subsection (a) (7) (B).

§ 31.3121 (i)-1 Computation to nearest dollar of cash remuneration for domestic service. An employer may, for purposes of the act, elect to compute to the nearest dollar any payment of cash remuneration for domestic service described in section 3121 (a) (7) (B) (see

F

§ 31.3121 (a) (7)-1) which is more less than a whole-dollar amount. the purpose of the computation to th nearest dollar, the payment of a fra tional part of a dollar shall be disre garded unless it amounts to one-ha dollar or more, in which case it shall increased to one dollar. For exampl any amount actually paid between $4.5 and $5.49, inclusive, may be treated $5 for purposes of the taxes imposed b the act. If an employer elects th method of computation with respect any payment of cash remuneration ma in a calendar quarter for domestic ser ice in his private home, he must use th same method in computing each pay ment of cash remuneration of more less than a whole-dollar amount ma to each of his employees in such caler dar quarter for domestic service in h private home. Moreover, if an employ elects this method of computation wit respect to payments of the prescribe character made in any calendar quarte the amount of each payment of cash re muneration so computed to the neare dollar shall, in lieu of the amount actu ally paid, be deemed to constitute th amount of cash remuneration for pur poses of the act. Thus, the amount cash payments so computed to the near est dollar shall be used for purposes determining whether such paymen constitute wages; for purposes of apply ing the employee and employer tax rate to the wage payments; for purposes any required record keeping; and fo purposes of reporting and paying th employee tax and employer tax with re spect to such wage payments.

§ 31.3121 (j) Statutory provisions definitions; covered transportatio service.

SEC. 3121. Definitions.

(1) Covered transportation service. Fo purposes of this chapter

(1) Existing transportation systems-Gen eral rule. Except as provided in paragrap (2), all service performed in the employ of State or political subdivision in connectio with its operation of a public transportation system shall constitute covered transporta tion service if any part of the transportatio system was acquired from private ownershi after 1936 and prior to 1951.

(2) Existing transportation systemsCases in which no transportation employees or only certain employees, are covered. Serv ice performed in the employ of a State o political subdivision in connection with th operation of its public transportation systen shall not constitute covered transportatio service if