26 U.S.C. § 3127 — Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs

(a) In general. Despite other provisions of this chapter, and subject to regulations for this section, an employer qualifies if (1) the employer—or, for a partnership^*, every partner^*—is a member of a recognized religious sect or division described in section 1402(g)(1), follows that sect's established beliefs or teachings described there, and has filed and obtained approval under subsection (b) for an exemption from section 3111 taxes; and (2) an employee^* of that employer who is also a member and adherent of such a sect or division has filed and obtained approval under subsection (b) for an identical exemption from section 3101 taxes. The employer is then exempt from section 3111 taxes on wages^* paid to each employee meeting paragraph (2), and each such employee is exempt from section 3101 taxes on those wages paid by that employer.

(b) Approval of application. An application by an employer, partner, or employee may be approved only if:

(1) it contains or is accompanied by the evidence described in section 1402(g)(1)(A) and the waiver described in section 1402(g)(1)(B);

(2) the Commissioner^* of Social Security makes the findings about the sect or division described in section 1402(g)(1)(C), (D), and (E); and

(3) no benefit or other payment described in section 1402(g)(1)(B) became payable, or would have become payable but for section 203 of the Social Security Act, to the applicant at or before the application was filed.

(c) Effective period of exemption. An exemption granted to an employer for wages paid to its employees, or granted to an employee, applies to wages paid during the period:

(1) beginning on the first day of the first calendar quarter after the quarter in which the application was filed, and continuing while the employer—or every partner if it is a partnership—or the employee meets the applicable requirements of subsections (a) and (b); and

(2) ending on the last day of the calendar quarter before the first later quarter in which either (A) the employer, any partner, or the employee no longer meets subsection (a)'s applicable requirements, or (B) the Commissioner finds that the sect or division no longer meets subsection (b)(2)'s requirements.