DEFINITION OF EMPLOYER.

SEC. 101. DEFINITION OF EMPLOYER. (a) Section 3306(a) of the Internal Revenue Code of 1954 is amended to read as follows: “(a) Employer.— For purposes of this chapter, the term ‘employer’ means, with respect to any calendar year, any person who— “(1) during any calendar quarter in the calendar year or the preceding calendar year paid wages of $1,500 or more, or “(2) on each of some 20 days during the calendar year or during the preceding calendar year, each day being in a different calendar week, employed at least one individual in employment for some portion of the day.” (b) (1) Section 6157(a)(1) of such Code (relating to payment of Federal unemployment tax on quarterly or other time period basis) is amended to read as follows: “(1) if the person— “(A) during any calendar quarter in the preceding calendar year paid wages of $1,500 or more, or “(B) on each of some 20 days during the preceding calendar year, each day being in a different calendar week, employed at least, one individual in employment, compute the tax imposed by section 3301 for each of the first three calendar quarters in the calendar year, and”. (2) Section 6157(b) of such Code is amended by striking out “the number of percentage points (including fractional points) by which the rate of tax specified in section 3301 exceeds 2.7 percent” and inserting in lieu thereof “0.5 percent”. (c) (1) The amendments made by subsections (a) and (b)(1) shall apply with respect to calendar years beginning after December 31, 1971. (2) The amendment made by subsection (b)(2) shall apply with respect to calendar years beginning after December 31, 1969.