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income that otherwise would be subject to the 2-percent
limitation of section 67(a).
An employee for employment tax purposes is defined in
pertinent part by section 3121(d) as follows:
SEC. 3121(d). Employee.--For purposes of this chapter,
the term “employee” means--
(1) any officer of a corporation; or
(2) any individual who, under the usual common law
rules applicable in determining the employer-employee
relationship, has the status of an employee; or
(3) any individual (other than an individual who
is an employee under paragraph (1) or (2)) who performs
services for remuneration for any person--
* * * * * * *
(B) as a full-time life insurance salesman;
For purposes of section 3121(d)(3)(B), section 31.3121(d)-
1(d)(3)(ii), Employment Tax Regs., defines a “full-time life
insurance salesman” as:
An individual whose entire or principal business activity is
devoted to the solicitation of life insurance or annuity
contracts, or both, primarily for one life insurance company
is a full-time life insurance salesman. * * * An
individual who is engaged in the general insurance business
under a contract or contracts of service which do not
contemplate that the individual’s principal business
activity will be the solicitation of life insurance or
annuity contracts, or both, for one company, or any
individual who devotes only part time to the solicitation of
life insurance contracts, including annuity contracts, and
is principally engaged in other endeavors, is not a full-
time life insurance salesman. [Emphasis added.]
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Last modified: May 25, 2011