Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 71-88

1971-1 C.B. 291

IRS Headnote

The term "calendar week" for purposes of the FUTA means a seven-day period beginning Sunday and ending Saturday, except that short weeks at the beginning and the end of the calendar year are considered "calendar weeks"; S.S.T. 414 superseded.

Full Text

Rev. Rul. 71-88 /1/

The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position set forth in S.S.T. 414, C.B. 1941-1, 412.

The specific question presented concerns the definition of the term "calendar week" for purposes of section 3306(a) of the Federal Unemployment Tax Act (chapter 23, subtitle C, Internal Revenue Code of 1954).

The employer in question has a payroll period that begins on Saturday and ends on the following Friday. The issue is whether or not such payroll period is a "calendar week" for purposes of section 3306(a) of the Code.

With respect to the calendar years 1970 and 1971 section 3306(a) provides, as follows:

For purposes of this chapter, the term "employer" does not include any person unless on each of some 20 days during the taxable year or during the preceding taxable year, each day being in a different calendar week, the total number of individuals who were employed by him in employment for some portion of the day (whether or not at the same moment of time) was 4 or more.

With respect to the calendar years after 1971 section 3306(a) provides as follows:

For purposes of this chapter, the term "employer" means, with respect to any calendar year, any person who

(1) during any calendar quarter in the calendar year or the preceding calendar year paid wages of $1,500 or more, or

(2) on each of some 20 days during the calendar year, or during the preceding calendar year, each day being in a different calendar week, employed at least one individual in employment for some portion of the day.

The term "calendar week" as used above means a period of seven days beginning with Sunday and ending at the close of the following Saturday, except that if the first week of the calendar year begins before Sunday or if the last week ends before Saturday, such short weeks are counted as "calendar weeks" for these purposes. The beginning and ending of the employee's payroll period are immaterial.

S.S.T. 414 is superseded, since the position set forth therein is restated under current law in this Revenue Ruling.

/1/ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.