26 CFR § 31.3306(c)(10)-3

26 CFR · Internal Revenue

§ 31.3306(c)(10)-3 — Services before 1962 in employ of certain employees' beneficiary associations.

TitleTitle 26: Internal Revenue PartPart 31: Employment Taxes and Collection of Income Tax at Source

SourceeCFR (current through Mar 20, 2026)

This text of 26 C.F.R. § 31.3306(c)(10)-3 (Services before 1962 in employ of certain employees' beneficiary associations.) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

26 C.F.R. § 31.3306(c)(10)-3 (2026).

Text

§ 31.3306(c)(10)-3 Services before 1962 in employ of certain employees' beneficiary associations.

(a)Voluntary employees' beneficiary associations. Services performed by an employee in the employ of a voluntary employees' beneficiary association providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents are excepted from employment if—

(1)No part of its net earnings inures (other than through such payments) to the benefit of any private shareholder or individual,

(2)85 percent or more of the income consists of amounts collected from members for the sole purpose of making such payments and meeting expenses, and

(3)The services are performed before 1962, or remuneration for the services is paid before 1962.

(b)Federal

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§ 31.3306(c)(10)-3 Services before 1962 in employ of certain employees' beneficiary associations.

(a) Voluntary employees' beneficiary associations. Services performed by an employee in the employ of a voluntary employees' beneficiary association providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents are excepted from employment if—

(1) No part of its net earnings inures (other than through such payments) to the benefit of any private shareholder or individual,

(2) 85 percent or more of the income consists of amounts collected from members for the sole purpose of making such payments and meeting expenses, and

(3) The services are performed before 1962, or remuneration for the services is paid before 1962.

(b) Federal employees' beneficiary associations. Services performed by an employee in the employ of a voluntary employees' beneficiary association providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents or their designated beneficiaries are excepted from employment if—

(1) Admission to membership in the association is limited to individuals who are officers or employees of the United States Government,

(2) No part of the net earnings of the association inures (other than through such payments) to the benefit of any private shareholder or individual, and

(3) The services are performed before 1962, or remuneration for the services is paid before 1962.

(c) Application of tests. For purposes of this section, the type of services performed by the employee, the amount of remuneration for the services, and the place where the services are performed are immaterial; the test is the character of the organization in whose employ the services are performed.

[T.D. 6658, 28 FR 6640, June 27, 1963]