SSR 62-29. WAGES -- DOMESTIC SERVICE -- IDENTITY OF EMPLOYER

D filed application for old-age insurance benefits in September 1961.

Since she attained age 62 in September 1961, she needed 10 quarters of

coverage to become entitled to benefits beginning that month. D's social

security earnings record showed 7 quarters of coverage acquired before

1959, but no wages or quarters of coverage after 1958. However, D stated

that she had employment and earnings not reflected by her earnings

record.

It was determined that D had worked part-time as a domestic from April

1959 through May 1961 for four women who shared a house and that they had

paid her $15 in cash each week for these services. The home was operated

as a single housekeeping unit and each woman paid an equal share of the

household expenses, which included D's pay. Each woman contributed $3.75

per week (or $48.75 per quarter) toward D's pay. The women had equal

authority to control and direct D in the performance of her services as

well as to terminate the employment relationship.

The question is whether D acquired at least 3 quarters of coverage by

reason of this work so that, with the 7 quarters of coverage previously

acquired, she would have the 10 quarters of coverage she needs to become

entitled to old-age insurance benefits.

Section 213 of the Social Security Act provides that the term "quarter of

coverage" means a calendar quarter (i.e., a period of 3 calendar months

ending on March 31, June 30, September 30, or December 31) in which an

individual is paid $50 or more in wages, or meets other requirements not

applicable here.

Section 209 of the Act provides, as pertinent here, that the term "wages"

means remuneration for employment. However, under subsection (g) of

section 209, remuneration for domestic service in the nonfarm private home

of the employer is not wages unless (1) such remuneration is paid in cash

and (2) such cash remuneration paid in a calendar quarter to the employee

by that employer is $50 or more.

209 of the Act provides, as pertinent here, that the term "wages"

means remuneration for employment. However, under subsection (g) of

section 209, remuneration for domestic service in the nonfarm private home

of the employer is not wages unless (1) such remuneration is paid in cash

and (2) such cash remuneration paid in a calendar quarter to the employee

by that employer is $50 or more.

Under subsection (g) of section 209, if each of the women for whom D

worked in 1960 is considered a separate employer, D's cash remuneration

from them would not be wages since her cash remuneration from each

employer in a quarter would be less than $50. The fact that the total of

such payments is over $50 in a quarter would not make them wages, and no

quarters of coverage could be established on the basis of such payments.

On the other hand, if the women constitute a single employer, D would have

been paid wages of $50 or more in each of the 9 calendar quarters in the

period beginning April 1, 1959, and ending June 30, 1961, and would have 9

quarters of coverage in addition to the 7 quarters of coverage acquired

before 1959. Thus, D's entitlement to benefits depends on whether these

women are considered one employer or several employers.

The home in which D performed her domestic services constituted a single

housekeeping unit in which each woman had the right to control, direct or

terminate D's services and an obligation to contribute equally to pay the

cash remuneration for D's services. In such circumstances, where domestic

services are performed in a dwelling which is occupied and operated as a

single housekeeping unit by several individuals who have the right to

direct and control the performance of the domestic services and who

contribute to the cost thereof, such individuals constitute a single

employing unit with respect to the domestic services.

for D's services. In such circumstances, where domestic

services are performed in a dwelling which is occupied and operated as a

single housekeeping unit by several individuals who have the right to

direct and control the performance of the domestic services and who

contribute to the cost thereof, such individuals constitute a single

employing unit with respect to the domestic services.

Accordingly, it is held that the four women constituted a single

employing unit and therefore D's cash remuneration for her domestic

services is not excluded from wages under section 209(g) of the Act. It is

held further that she was paid wages of $50 or more for the 9 calendar

quarters in the period April 1, 1959, through June 30, 1961. Thus she has

a total of 16 quarters of coverage and is entitled to old-age insurance

benefits beginning September 1961, having met all other requirements for

entitlement.