D applied for old age social security insurance benefits in September 1961. Because of the year she was born, she needed 10 quarters of coverage in order to qualify for benefits. Her earnings record showed 7 quarters of coverage before 1959, but none thereafter.

However, D provided evidence that she worked for a private home jointly owned and operated by four women during the years 1959 through 1961. She was paid $15 in cash each week from April 1959 through June 1961. Each of the four owners had paid her $3.75 per week in cash.

The social security definition of wages is broad and basically includes all remuneration for services rendered. However, there are certain exceptions. One of the exceptions is remuneration for domestic services in a non-farm home unless: 1) the remuneration is paid in cash and 2) the cash remuneration is at least fifty dollars in a quarter paid by the employer to the employee.

The question was whether D had performed domestic services for four separate employees, or whether the four joint owners of the private home constituted one employment unit.

If there were four separate employers, then D was only paid $48.75 per quarter by each employer, and her remuneration for domestic services in a non-farm home therefore was not covered wages for social security purposes.

On the other hand, if the owners of the home were one employment unit, then D was paid $195 per quarter by her employer for domestic services in a non-farm private home. Her remuneration would count as social security wages and she would have enough quarters of coverage to qualify for old age social security benefits.

It was determined that the four owners constituted one employment unit. Each had equal authority and responsibility to pay and supervise D. Each had the authority to terminate her services.

Because D’s work was covered for social security purposes, she had fifteen quarters of coverage, enough to achieve social security insured status.

Held: Social Security benefits awarded to D.

See Social Security Ruling (SSR) 62-29.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.