26 USC 3401
(a) Wages. For purposes of this chapter, the term "wages" means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remunerations paid in any medium other than cash; except that such term shall not include remuneration paid -
This definition states that wages are defined by the relationship
between an employee and his employer.
This fact brings out the importance of knowing just WHO is an employee, and WHO is the employer referred to within these laws. The legal definition of "employer" states:
26 USC 3401
(d) Employer. For purposes of this chapter, the term "employer" means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, ...
BUT, before one can possibly positively identify the identity of the "employer", one must first pinpoint the identity of the "employee".
26 USC Section 3401
(c) Employee. For purposes of this chapter, the term "employee" includes an
officer, employee or elected official of the
26 USC 3401
Here is a classic example of how it is easy to be
misled by the Code. Though it first appears that the definition of
"wages" includes the earnings of every person, a closer look shows
that the actual legal definition of the
term employee does not include persons
working outside of the
Did you notice that under the law only individuals who work for the Federal government are "employees". That of course means that the only "employer" addressed by the laws in Chapter 24 of Title 26 is the Federal government. This is because under the Constitution, the Federal government does not possess the territorial jurisdiction to dictate, alter, or attach to work agreements under private contracts. Under the law, no one else can be an "employer", by mandate, except the federal government, and only those people working for the Federal government can be "employees", have "employment", and possess "wages".
The term "wages" is defined here in Title 26 in Section 3401(a) where it controls the withholding of income tax on "wages" under Section 3402, under Chapter 24. "Wages" are "covered earnings". Covered earnings are earnings that are taxed, at your request and Allowance if you are a citizen, and by lawful requirement if you are a foreigner, for the purpose of accumulating "credits" to be used in calculating future Social Security benefit payments.
If you have voluntarily given a Social Security number to your "employer" on a W-4 Withholding Allowance Certificate, you have "wages", and you are an "employee" and your work is called "employment". If you do not participate in Social Security then you are NOT an "employee", and you just have earnings, NOT "wages", and you just have a job, not "employment", and you have a boss, not an "employer". Your employer became an "employer", when he voluntarily applied for an EIN (employment identification number) to participate in the Social Security system as a withholder of employment taxes (employer) under subtitle C.
That of course means that your employer (in the private sector) cannot claim any legal authority at all to withhold tax from you under Chapter 24 provisions, unless you voluntarily request it by submitting a W-4. Forcing you to provide a W-4 in order to work is unlawful coercion, unless you work for the federal government, and doing so effectively makes you nothing more than a federal peon for as long as you hold that job. Now what section did your employer cite as his authority to TAKE your money, wasn't it 26 USC 3402(a)? Isn't that in Chapter 24 ?
You see the only "employer" required in the Code is the Federal government. A private company is not required by law to participate, but may do so by making an application to participate. Under the Constitution, Congress has no jurisdictional authority over private contracts between Citizens and the private companies that they work for in the fifty states. So by law, in recognition of that fact, the only employer required by law to participate is the government.
In Title 20 WAGES are DEFINED as:
20 CFR 404.1041 Wages.
(a) the term "wages" means remuneration paid to you as an employee for employment unless specifically excluded....
(b) if you are paid wages it is not important what they are called. Salaries, fees, bonuses and commissions on sales or on insurance premiums are wages if they are paid for employment.....
20 CFR 404.1003 Employment.
Employment means, generally any service covered by social security perfromed by an employee for his or her employer...
20 CFR 404.1004 What work is covered as employment.
(a) General requirements of employment. Unless otherwise excluded..., the work you perform as an employee for your employer is covered as employment under social security if one of the following situations applies:
(1) You perform the work within the
(2) You perform the work outside the
OK. Is that all clear.
Maybe this will help:
20 CFR 404.1001 Introduction
(1) In general, your social security benefits are based on your earnings that are on our records... you receive credit only for earnings that are covered for social security purposes. The earnings are covered only if your work is covered. If you are an employee.....Some work is covered by Social Security and some work is not. Also, some earnings are covered by social security and some are not. It is important that you are aware of what kinds of work and earnings are covered so that you will know whether your earnings should be on our records.
(2) If you are an employee, your covered work is called "employment."...
(3) If your work is "employment" your covered earnings are called "wages".
I'm sorry, isn't this where we started with wages. Don't you just love circular legal definitions that define themselves with references to variations of themselves ? I mean, I hope you don't just think I'm making this up on my own. I couldn't dream this up, ever.
These definitions (descriptive paragraphs) are in Title 20 - Education, because just like public schooling, Social Security is VOLUNTARY for citizens, not mandatory (one can choose a private school, and one can choose a private retirement program, if he wishes). If you have been forced to sign a W-4 in order to "be allowed" to work, you have been enslaved, and are now a federal peon.
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