Code of Federal Regulations · Section
§ 31.3306(c)(5)-1 — (c)(5)-1 Family Employment
26 C.F.R. § 31.3306(c)(5)-1
(a) Certain services are excepted from employment because of the existence of a family relationship between the employee and the individual employing him. The exceptions are as follows:
(1) Services performed by an individual in the employ of his or her spouse;
(2) Services performed by a father or mother in the employ of his or her son or daughter; and
(3) Services performed by a son or daughter under the age of 21 in the employ of his or her father or mother.
(b) Under paragraph (a) (1) and (2) of this section, the exception is conditioned solely upon the family relationship between the employee and the individual employing him. Under paragraph (a)(3) of this section, in addition to the family relationship, there is a further requirement that the son or daughter shall be under the age of 21, and the exception continues only during the time that such son or daughter is under the age of 21.
(c) Services performed in the employ of a partnership are within the exception described in paragraph (a) of this section only if the requisite family relationship exists between the employee and each of the partners comprising the partnership.
(d) Services performed in the employ of a corporation are not within the exception described in paragraph (a) of this section, except that services performed in the employ of an entity that is treated as a corporation under § 301.7701-2(c)(2)(iv)(B) of this chapter may qualify for the exception if the requirements of the exception are otherwise met. An entity that is treated as a corporation under § 301.7701-2(c)(2)(iv)(B) of this chapter is not treated as the employer for purposes of applying section 3306(c)(5) and this section. For purposes of applying section 3306(c)(5) and this section, the owner of an entity that is treated as a corporation under § 301.7701-2(c)(2)(iv)(B) of this chapter is treated as the employer.
(e) Paragraphs (c) and (d) of this section apply to wages paid on or after November 1, 2011. However, taxpayers may apply paragraphs (c) and (d) of this section to wages paid on or after January 1, 2009.
Authorizing Statute
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Adjusted gross income defined26 U.S.C. § 62
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Credit for paid sick leave26 U.S.C. § 3131
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General requirement of return, statement, or list26 U.S.C. § 6011
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Income tax collected at source26 U.S.C. § 3402
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Time for filing returns and other documents26 U.S.C. § 6071
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Payroll credit for paid family leave26 U.S.C. § 3132
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Mode or time of collection26 U.S.C. § 6302
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Information returns of tax return preparers26 U.S.C. § 6060
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Withholding of tax on nonresident aliens26 U.S.C. § 1441
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Definitions26 U.S.C. § 3121
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Definitions26 U.S.C. § 3401
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Extension of time for filing returns26 U.S.C. § 6081
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Identifying numbers26 U.S.C. § 6109
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Special rules applicable to certain employment taxes26 U.S.C. § 6205
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Rules and regulations26 U.S.C. § 7805
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Definitions26 U.S.C. § 7701
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Certified professional employer organizations26 U.S.C. § 3511
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Backup withholding26 U.S.C. § 3406
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Receipts for employees26 U.S.C. § 6051