DEFINITION OF EMPLOYER.

SEC. 114. DEFINITION OF EMPLOYER. (a) General Rule.—Subsection (a) of section 3306 of the Internal Revenue Code of 1954 (defining employer) is amended to read as follows: “(a) Employer.—For purposes of this chapter— “(1) In general.— The term ‘employer’ means, with respect to any calendar year, any person who— “(A) during any calendar quarter in the calendar year or the preceding calendar year paid wages of $1,500 or more, or “(B) 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. For purposes of this paragraph, there shall not be taken into account any wages paid to, or employment of, an employee per-forming domestic services referred to in paragraph (3). “(2) Agricultural labor.— In the case of agricultural labor, the term ‘employer’ means, with respect to any calendar year, any person who— “(A) during any calendar quarter in the calendar year or the preceding calendar year paid wages of $20,000 or more for agricultural labor, or “(B) 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 10 individuals in employment in agricultural labor for some portion of the day. “(3) Domestic service.— In the case of domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, the term ‘employer’ means, with respect to any calendar year, any person who during any calendar quarter in the calendar year or the preceding calendar year paid wages in cash of $1,006 or more for such service. “(4) Special rule.—A person treated as an employer under paragraph (3) shall not be treated as an employer with respect to wages paid for any service other than domestic service referred to in paragraph (3) unless such person is treated as an employer under paragraph (1) or (2) with respect to such other service.” (b) Technical Amendment.—Subsection (a) of section 6157 of such Code (relating to payment of Federal unemployment, tax on quarterly or other time period basis) is amended to read as follows: “(a) General Rule.—Every person who for the calendar year is an employer (as defined in section 3306(a)) shah— “(1) if the person is such an employer for the preceding calendar year (determined by only taking into account wages paid and employment during such preceding calendar year), compute the tax imposed by section 3301 for each of the first 3 calendar quarters in the calendar year on wages paid for services with respect to which the person is such an employer for such preceding calendar year (as so determined), and “(2) if the person is not such an employer for the preceding calendar year with respect to any services (as so determined), compute the tax imposed by section 3301 on wages paid for serv-90 STAT. 2670 ices with respect to which the person is not such an employer for the preceding calendar year (as so determined)— “(A) for the period beginning with the first day of the calendar year and ending with the last day of the calendar quarter (excluding the last calendar quarter) in which such person becomes such an employer with respect to such services, and “(B) for the third calendar quarter of such year, if the period specified in subparagraph (A) includes only the first two calendar quarters of the calendar year. The tax for any calendar quarter or other period shall be computed as provided in subsection (b) and the tax as so computed shall, except as otherwise provided m subsections (c) and (d), be paid in such manner and at such time as may be provided in regulations prescribed by the Secretary.” (c) Effective Date.—The amendments made by this section shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date.