[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR31.3401(a)(10)-1]

[Page 207]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents
 
              Subpart E_Collection of Income Tax at Source
 
Sec. 31.3401(a)(10)-1  Remuneration for services in delivery or 
distribution of newspapers, shopping news, or magazines.

    (a) Services of individuals under age 18. Remuneration for services 
performed by an employee under the age of 18 in the delivery or 
distribution of newspapers, or shopping news, not including delivery or 
distribution (as, for example, by a regional distributor) to any point 
for subsequent delivery or distribution, is excepted from wages and 
hence is not subject to withholding. Thus, remuneration for services 
performed by an employee under the age of 18 in making house-to-house 
delivery or sale of newspapers or shopping news, including handbills and 
other similar types of advertising material, is excepted from wages. The 
remuneration is excepted irrespective of the form or method thereof. 
Remuneration for incidental services by the employee who makes the 
house-to-house delivery, such as services in assembling newspapers, is 
considered to be within the exception. The exception continues only 
during the time that the employee is under the age of 18.
    (b) Services of individuals of any age. Remuneration for services 
performed by an employee in, and at the time of, the sale of newspapers 
or magazines to ultimate consumers under an arrangement under which the 
newspapers or magazines are to be sold by him at a fixed price, his 
remuneration being based on the retention of the excess of such price 
over the amount at which the newspapers or magazines are charged to him, 
is excepted from wages and hence is not subject to withholding. The 
remuneration is excepted whether or not the employee is guaranteed a 
minimum amount or remuneration, or is entitled to be credited with the 
unsold newspapers or magazines turned back. Moreover, the remuneration 
is excepted without regard to the age of the employee. Remuneration for 
services performed other than at the time of sale to the ultimate 
consumer is not within the exception. Thus, remuneration for services of 
a regional distributor which are antecedent to but not immediately part 
of the sale to the ultimate consumer is not within the exception. 
However, remuneration for incidental services by the employee who makes 
the sale to the ultimate consumer, such as services in assembling 
newspapers or in taking newspapers or magazines to the place of sale, is 
considered to be within the exception.