SSR 62-61: Rescinded 1984

20 CFR 404.408 and 404.418

SSR 62-61

An old-age insurance beneficiary performed services in Canada as an

employee of a foreign employer for 1 hour per day on 6 days per week

during the period March 1961 through January 1962. Held , such

services constitute engaging in noncovered remunerative activity outside

the United States on 7 or more different calendar days in each month from

March 1961 through January 1962. Therefore, a deduction equal to the

amount of the benefit must be made from benefits for each of the months

March 1961 through January 1962.

C, a United States citizen living in Canada, filed application for

old-age insurance benefits in March 1962 and became entitled to benefits

of $100 a month beginning March 1961. C had worked in Canada as the

employee of a doctor, a resident of Canada in private practice, from 1956

to January 31, 1962. She had worked as the doctor's receptionist 1 hour a

day on 6 days a week and was paid $18 per week.

Under section 203(c), as pertinent here, a deduction equal to the amount

of the monthly benefit must be made for any month in which an old-age

insurance beneficiary under age 72 engages in noncovered remunerative

activity outside the United States on 7 or more different calendar days.

Section 203(k) provides, in pertinent part, that a person "shall be

considered to be engaged in noncovered remunerative activity outside the

United States if he performs services outside the United States as an

employee and such services do not constitute employment as defined in

section 210" of the Act.

The question is for what months, if any, must deductions be made for C's

old-age insurance benefits. This depends, in turn, on what months she

engaged in uncovered remunerative activity outside the United States on 7

or more different calendar days.

rms services outside the United States as an

employee and such services do not constitute employment as defined in

section 210" of the Act.

The question is for what months, if any, must deductions be made for C's

old-age insurance benefits. This depends, in turn, on what months she

engaged in uncovered remunerative activity outside the United States on 7

or more different calendar days.

C's services in Canada as an employee of a resident of Canada (of foreign

employer) do not constitute employment under section 210 of the Act and

are noncovered remunerative activity outside the United States. Since C

performed noncovered remunerative activity on 6 different calendar days

per week (or on 24-27 different calendar days per month) for the period

March 1961 through January 1962, a deduction equal to the monthly benefit

($100) must be made from her benefits for each of those months. Thus

nothing is payable to C for the months of March 1961 through January 1962.

It is immaterial that the total time she devoted to these services was

only 24 to 27 hours per month or that her remuneration for such services

was only $72 to $81 per month, since the law specifically refers to

engaging in noncovered remunerative activity on 7 or more different

calendar days in a month and not to any amount of work of remuneration.

Accordingly, it is held that a deduction equal to the amount of

their monthly benefit must be made from C's old-age insurance benefits for

each of the months March 1961 to January 1962, inclusive. Therefore, no

benefits are payable to her for such months.