June 8, 2008 by admin

1015. Positions Compensated Solely by Fees

1015.1 How are services compensated solely on a fee basis treated for Social Security coverage purposes?

If you perform work in a position compensated solely by fees received directly from the public, you are considered self-employed and covered under the SECA tax (See §1125). This does not apply to positions compensated by both salary and fees.

1015.2 What is a fee-based official?

A fee-based public official is one who receives and retains remuneration directly from the public, e.g., a notary public. If you receive payment for services from government funds in the form of a wage or salary, you are not a fee-based public official even if the compensation is called a fee.

1015.3 What if both salary and fees are used as compensation?

If you receive compensation in the form of both a salary and fees, your position is considered fee-based, if the fees are the primary source of compensation. However, State law may determine that any position, for which any salary is paid, is not a fee-based position. In this case, your position may not be considered fee-based.

Last Revised: Jul. 8, 2004