---
kind: "section"
citation: "26 U.S.C. § 3127"
title: "26"
title_heading: "Internal Revenue Code"
number: "3127"
heading: "Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/3127"
units:
  - "Subtitle C — Employment Taxes"
  - "Chapter 21 — Federal Insurance Contributions Act"
  - "Subchapter C — General Provisions"
---

# §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](/usc/26/3231.md?p=a) (or, if the [employer](/usc/26/3231.md?p=a) is a partnership, each partner therein) is a member of a recognized religious sect or division thereof described in [section 1402(g)(1)](/usc/26/1402.md?p=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)](#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](/usc/26/3111.md), and
  - (2) an [employee](/usc/26/3121.md?p=d) of such [employer](/usc/26/3231.md?p=a) 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)](#b) an identical application for exemption from the taxes imposed by [section 3101](/usc/26/3101.md),

  such [employer](/usc/26/3231.md?p=a) shall be exempt from the taxes imposed by [section 3111](/usc/26/3111.md) with respect to [wages](/usc/26/3121.md?p=a) paid to each of the [employees](/usc/26/3121.md?p=d) thereof who meets the requirements of [paragraph (2)](#a-2) and each such [employee](/usc/26/3121.md?p=d) shall be exempt from the taxes imposed by [section 3101](/usc/26/3101.md) with respect to such [wages](/usc/26/3121.md?p=a) paid to him by such [employer](/usc/26/3231.md?p=a).

- (b) **Approval of application—** An application for exemption filed by an [employer](/usc/26/3231.md?p=a) (or a partner) under [subsection (a)(1)](#a-1) or by an [employee](/usc/26/3121.md?p=d) under [subsection (a)(2)](#a-2) shall be approved only if—
  - (1) such application contains or is accompanied by the evidence described in [section 1402(g)(1)(A)](/usc/26/1402.md?p=g-1-A) and a waiver described in [section 1402(g)(1)(B)](/usc/26/1402.md?p=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)](/usc/26/1402.md?p=g-1-C), (D), and (E), and
  - (3) no benefit or other payment referred to in [section 1402(g)(1)(B)](/usc/26/1402.md?p=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](/usc/26/3231.md?p=a) with respect to [wages](/usc/26/3121.md?p=a) paid to any of the [employees](/usc/26/3121.md?p=d) thereof, or granted to any such [employee](/usc/26/3121.md?p=d), shall apply with respect to [wages](/usc/26/3121.md?p=a) paid by such [employer](/usc/26/3231.md?p=a) 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](/usc/26/3231.md?p=a) (or, if the [employer](/usc/26/3231.md?p=a) is a partnership, each partner therein) or [employee](/usc/26/3121.md?p=d) meets the applicable requirements specified in subsections [(a)](#a) and [(b)](#b), and
  - (2) ending with the last day of the calendar quarter preceding the first calendar quarter thereafter in which (A) such [employer](/usc/26/3231.md?p=a) (or, if the [employer](/usc/26/3231.md?p=a) is a partnership, any partner therein) or the [employee](/usc/26/3121.md?p=d) involved does not meet the applicable requirements of subsection [(a)](#a), or (B) the sect or division thereof of which such [employer](/usc/26/3231.md?p=a) (or, if the [employer](/usc/26/3231.md?p=a) is a partnership, any partner therein) or [employee](/usc/26/3121.md?p=d) is a member is found by the Commissioner of Social Security to have ceased to meet the requirements of [subsection (b)(2)](#b-2).

## Source credit

(Added Pub. L. 100–647, title VIII, § 8007(a)(1), Nov. 10, 1988, 102 Stat. 3781; amended Pub. L. 101–239, title X, § 10204(b)(1), Dec. 19, 1989, 103 Stat. 2474; Pub. L. 103–296, title I, § 108(h)(3), Aug. 15, 1994, 108 Stat. 1487; Pub. L. 115–141, div. U, title IV, § 401(b)(35), Mar. 23, 2018, 132 Stat. 1204.)

## Notes

### Editorial Notes

### References in Text

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

### Prior Provisions

A prior section 3127 was renumbered section 3128 of this title.

### Amendments

2018—Subsec. (b)(3). Pub. L. 115–141 struck out “or 222(b)” after “section 203”.

1994—Subsecs. (b)(2), (c)(2). Pub. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services”.

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

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

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

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

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

Subsec. (c)(2). Pub. L. 101–239, § 10204(b)(1)(F), 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

Amendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare.

### Effective Date of 1989 Amendment

Pub. L. 101–239, title X, § 10204(b)(2), Dec. 19, 1989, 103 Stat. 2474, provided that: “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 (102 Stat. 3781) [Pub. L. 100–647].”

### Effective Date

Section applicable to wages paid after Dec. 31, 1988, see section 8007(d) of Pub. L. 100–647, set out as an Effective Date of 1988 Amendment note under section 1402 of this title.

### Savings Provision

For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.