US Code

Public Law 119-73 (01/23/2026)

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

Notwithstanding any other provision of this chapter (and under regulations prescribed to carry out this section), in any case where—
(1)
an employer (or, if the employer is a partnership, each partner therein) is a member of a recognized religious sect or division thereof described in section 1402(g)(1) and an adherent of established tenets or teachings of such sect or division as described in such section, and has filed and had approved under subsection (b) an application (in such form and manner, and with such official, as may be prescribed by such regulations) for an exemption from the taxes imposed by section 3111, and
(2)
an employee of such employer who is also a member of such a religious sect or division and an adherent of its established tenets or teachings has filed and had approved under subsection (b) an identical application for exemption from the taxes imposed by section 3101,
such employer shall be exempt from the taxes imposed by section 3111 with respect to wages paid to each of the employees thereof who meets the requirements of paragraph (2) and each such employee shall be exempt from the taxes imposed by section 3101 with respect to such wages paid to him by such employer.
(b)

Approval of application

An application for exemption filed by an employer (or a partner) under subsection (a)(1) or by an employee under subsection (a)(2) shall be approved only if—
(1)
such application contains or is accompanied by the evidence described in section 1402(g)(1)(A) and a waiver described in section 1402(g)(1)(B),
(2)
the Commissioner of Social Security makes the findings (with respect to such sect or division) described in section 1402(g)(1)(C), (D), and (E), and
(3)
no benefit or other payment referred to in section 1402(g)(1)(B) became payable (or, but for section 203 of the Social Security Act, would have become payable) to the individual filing the application at or before the time of such filing.
(c)

Effective period of exemption

An exemption granted under this section to any employer with respect to wages paid to any of the employees thereof, or granted to any such employee, shall apply with respect to wages paid by such employer during the period—
(1)
commencing with the first day of the first calendar quarter, after the quarter in which such application is filed, throughout which such employer (or, if the employer is a partnership, each partner therein) or employee meets the applicable requirements specified in subsections (a) and (b), and
(2)
ending with the last day of the calendar quarter preceding the first calendar quarter thereafter in which (A) such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet the applicable requirements of subsection (a), or (B) the sect or division thereof of which such employer (or, if the employer is a partnership, any partner therein) or employee is a member is found by the Commissioner of Social Security to have ceased to meet the requirements of subsection (b)(2).

Pub. L. 100–647, title VIII, § 8007(a)(1)102 Stat. 3781Pub. L. 101–239, title X, § 10204(b)(1)103 Stat. 2474Pub. L. 103–296, title I, § 108(h)(3)108 Stat. 1487Pub. L. 115–141, div. U, title IV, § 401(b)(35)132 Stat. 1204(Added , , ; amended , , ; , , ; , , .)

Editorial Notes

References in Text

section 403 of Title 42Section 203 of the Social Security Act, referred to in subsec. (b)(3), is classified to , The Public Health and Welfare.

Prior Provisions

section 3128 of this titleA prior section 3127 was renumbered .

Amendments

Pub. L. 115–1412018—Subsec. (b)(3). struck out “or 222(b)” after “section 203”.

Pub. L. 103–2961994—Subsecs. (b)(2), (c)(2). substituted “Commissioner of Social Security” for “Secretary of Health and Human Services”.

Pub. L. 101–239, § 10204(b)(1)(B)1989—Subsec. (a). , substituted “the employees thereof” for “his employees” in concluding provisions.

Pub. L. 101–239, § 10204(b)(1)(A)Subsec. (a)(1). , inserted “(or, if the employer is a partnership, each partner therein)” after “an employer”.

Pub. L. 101–239, § 10204(b)(1)(C)Subsec. (b). , inserted “(or a partner)” after “an employer” in introductory provisions.

Pub. L. 101–239, § 10204(b)(1)(D)Subsec. (c). , substituted “the employees thereof” for “his employees” in introductory provisions.

Pub. L. 101–239, § 10204(b)(1)(E)Subsec. (c)(1). , inserted “(or, if the employer is a partnership, each partner therein)”.

Pub. L. 101–239, § 10204(b)(1)(F)Subsec. (c)(2). , substituted “such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet” for “such employer or the employee involved ceases to meet” in cl. (A) and inserted “(or, if the employer is a partnership, any partner therein)” after “such employer” in cl. (B).

Statutory Notes and Related Subsidiaries

Effective Date of 1994 Amendment

Pub. L. 103–296section 110(a) of Pub. L. 103–296section 401 of Title 42Amendment by effective , see , set out as a note under , The Public Health and Welfare.

Effective Date of 1989 Amendment

Pub. L. 101–239, title X, § 10204(b)(2)103 Stat. 2474

102 Stat. 3781Pub. L. 100–647“The amendments made by this subsection [amending this section] shall be effective as if they were included in the amendments made by section 8007(a)(1) of the Technical and Miscellaneous Revenue Act of 1988 () [].”
, , , provided that:

Effective Date

section 8007(d) of Pub. L. 100–647section 1402 of this titleSection applicable to wages paid after , see , set out as an Effective Date of 1988 Amendment note under .

Savings Provision

Pub. L. 115–141section 401(e) of Pub. L. 115–141section 23 of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .