# SSR 63-18: SSR 63-18: SECTION 209. -- WAGES -- TRAVEL EXPENSES EXCEEDING ALLOWANCE FOR TRAVEL

> Federal · Rulings · In force

URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_63_18

## Section

- **Citation:** SSR 63-18
- **Heading:** SSR 63-18: SECTION 209. -- WAGES -- TRAVEL EXPENSES EXCEEDING ALLOWANCE FOR TRAVEL
- **Jurisdiction:** Federal
- **Kind:** Rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Social Security Rulings / OASI / Definition of Wages / SSR 63-18

## Text

20 CFR 404.1026

SSR 63-18

T, born in January 1895, became entitled to old-age insurance benefits of
$90 a month beginning January 1960. He did not work in 1960 but returned
to work in January 1961 as a commission salesman for the X Company, a
dress manufacturer, and performed services for them until May 1961 when
his relationship was terminated. During this 5-month period, T worked as a
traveling salesman and was engaged on a full time, exclusive basis in the
solicitation on behalf of, and the transmission to, his principal, of
orders from retailers of women's wearing apparel; his contract
contemplated that substantially all of his services were to be performed
personally by him; he had no substantial investment in the facilities used
in connection with such services other than in facilities for
transportation; and his services were part of a continuing relationship
with the company.

T was reimbursed for his services on the basis of an 8 percent commission
on sales and was provided with a drawing account of $100 per week and an
additional $42 per week specifically designated by the X Company for
travel expenses. Pursuant to this agreement, which was in writing, T
received a total of $1900 during 1961 from which income and social
security taxes were withheld by the company. T used the calendar year as
his taxable year. T also received a total of $800 which was paid
separately and expressly for his traveling expenses. T alleged, however,
that his actual traveling expenses for the period were $1510 and that his
net earnings or wages for the year were, as a result, only $1190. He
contended that, since this amount was under $1200, his social security
benefits for 1961 were not subject to deductions under section 203 of the
Act. That section provides in effect that if "excess earnings" for a
taxable year ending after June 30, 1961, are chargeable to a month in that
year the amount so charged must be deducted from benefits for that month
as a result, only $1190. He
contended that, since this amount was under $1200, his social security
benefits for 1961 were not subject to deductions under section 203 of the
Act. That section provides in effect that if "excess earnings" for a
taxable year ending after June 30, 1961, are chargeable to a month in that
year the amount so charged must be deducted from benefits for that month.
An individual's earnings for a taxable year, for purposes of work
deductions under section 203 of the Act, are the sum of his wages for
services rendered in such year and his net earnings from self-employment
for such year minus any net loss from self-employment for such year. For a
12-month taxable year, earnings in excess of $1200 are chargeable against
the person's benefits at the rate of $1 for $2 of the first $500 excess
earnings and $1 for $1 of any additional excess earnings. However, no
excess earnings are charged to a month if the person is not entitled to
benefits for that month, or if he is age 72 or over in that month, or if
he has neither rendered substantial services in self-employment nor
rendered services for wages of over $100 in that month.

Under section 210(j)(3)(D) of the Act, a person is an employee if (1) he
is engaged on a full-time and continuing basis as a traveling salesman in
the solicitation, on behalf of and for transmittal to his principal, of
orders from retailers or other specified types of establishments for goods
for resale, (2) he has no substantial investment in the facilities used in
connection with the performance of the services other than for
transportation , and (3) he is required to perform substantially all of
the services personally.
man in
the solicitation, on behalf of and for transmittal to his principal, of
orders from retailers or other specified types of establishments for goods
for resale, (2) he has no substantial investment in the facilities used in
connection with the performance of the services other than for
transportation , and (3) he is required to perform substantially all of
the services personally.

Since the arrangement under which T worked conformed in all respects to
this provision of the law, he was an employee of the X Company. His
remuneration was wages under section 209 and was not earnings from
self-employment. Accordingly, the provisions of section 209 (as modified
by section 203(f)(5)(C) which relates to circumstances not present in this
case) and the regulations relating to wages are determinative of T's
earnings as a traveling salesman.

Section 209 provides in pertinent part:

* * * * * * *

The quoted regulations exclude from wages only those amounts identified
as being paid specifically as an allowance for or in reimbursement of
traveling expenses. They do not provide for figuring the amount of the
employee's wages by deducting any amount not specifically paid and
identified as such. Therefore, no amount in excess of the amount so
designated and paid may be deducted as travel expenses in figuring the
person's wages.

None of the specific exclusions of section 209 of the Act are pertinent
in T's case. Therefore, all of the remuneration he received for his
services as an employee of the X Company is wages. However, the separate
traveling expense allowance paid to him is not remuneration for his
services; and, therefore, this amount does not constitute wages.
el expenses in figuring the
person's wages.

None of the specific exclusions of section 209 of the Act are pertinent
in T's case. Therefore, all of the remuneration he received for his
services as an employee of the X Company is wages. However, the separate
traveling expense allowance paid to him is not remuneration for his
services; and, therefore, this amount does not constitute wages.

The X Company identified and paid T only $800 as traveling or other
expenses. Neither the law nor the regulations include provisions which
would permit the deduction of the expenses which he incurred in excess of
that amount from the $1900 paid to him as wages by the company in
computing his earnings for social security purposes during 1961.

Accordingly, it is held that T was an employee of the X Company from
January to May 1961; that he rendered services for wages in excess of $100
per month in each of those 5 months; that his total earnings for 1961
amounted to $1900; and that work deductions under section 203 of the Act
are applicable against his benefits for each of those months.

## Nearby sections

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- [SSR 62-63 SSR 62-63: Rescinded 1984](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_63.md)
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- [SSR 70-43 SSR 70-43: SECTION 209. -- WAGES -- STATUS OF UNIFORM ALLOWANCES TO EMPLOYEES OF A STATE OR POLITICAL SUBDIVISION](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_43.md)
- [SSR 72-56 SSR 72-56: SECTION 209(b) and (d) (42 U.S.C. 409(b) AND (d)). -- STATE AND LOCAL COVERAGE -- WAGES -- STATUS OF REMUNERATION PAID TO PUBLIC EMPLOYEES ABSENT FROM WORK DUE TO ILLNESS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_72_56.md)
- [SSR 72-57 SSR 72-57: SECTION 209(g)(2) and 214(a) (42 U.S.C. 409(g)(2) and 414(a)). -- WAGES -- DOMESTIC SERVICE -- IDENTITY OF EMPLOYER -- INSURED STATUS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_72_57.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_63_18. Check the current official text before relying on it. Not legal advice.