Title I, SEC. 1901. DEFINITIONS RELATING TO EMPLOYMENT AND INCOME. (a) In General. Except as otherwise specifically provided, in this Act the following definitions and rules apply: (1) Employer, employee, employment, and wages defined. Except as provided in this section (A) the terms ``wages'' and ``employment'' have the meanings given such terms under section 3121 of the Internal Revenue Code of 1986, (B) the term ``employee'' hs the meaning given such term under subtitle C of such Code, and (C) the term ``employer'' has the same meaning as the term ``employer'' as used in such section. (2) Exceptions. For purposes of paragraph (1) (A) Employment. (i) Employment included. Paragraphs (1), (2), (5), (7) (other than clauses (i) through (iv) of subparagraph (C) and clauses (i) through (v) of subparagraph (F)), (8), (9), (10), (11), (13), (15), (18), and (19) of section 3121(b) of the Internal Revenue Code of 1986 shall not apply. (ii) Exclusion of inmates as employees. Employment shall not include services performed in a penal institution by an inmate thereof or in a hospital or other health care institution by a patient thereof. (B) Wages. (i) In general. Paragraph (1) of section 3121(a) of the Internal Revenue Code of 1986 shall not apply. (ii) Tips not included. The term ``wages'' does not include cash tips. (C) Exclusion of employees outside the united states. The term ``employee'' does not include an individual who does not reside in the United States. (D) Exclusion of foreign employment. The term ``employee'' does not include an individual (i) with respect to service, if the individual is not a citizen or resident of the United States and the service is performed outside the United States, or (ii) with respect to service, if the individual is a citizen or resident of the United States and the service is performed outside the United States for an employer other than an American employer (as defined in section 3121(h) of the Internal Revenue Code of 1986). (3) Aggregation rules for employers. For purposes of this Act (A) all employers treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as a single employer, and (B) under regulations of the Secretary of Labor, all employees of organizations which are under common control with one or more organizations which are exempt from income tax under subtitle A of the Internal Revenue Code of 1986 shall be treated as employed by a single employer. The regulations prescribed under subparagraph (B) shall be based on principles similar to the principles which apply to taxable organizations under subparagraph (A). (4) Employer premium. The term ``employer premium'' refers to the premium established and imposed under part 2 of subtitle B of title VI. (b) Qualifying Employee; Full-Time Employment. (1) Qualifying employee. (A) In general. In this Act, the term ``qualifying employee'' means, with respect to an employer for a month, an employee (other than a covered child, as defined in subparagraph (C)) who is employed by the employer for at least 40 hours (as determined under paragraph (3)) in the month. (B) No special treatment of medicare beneficiaries, ssi recipients, afdc recipients, and others. Subparagraph (A) shall apply regardless of whether or not the qualifying employee is a medicare-eligible individual, an SSI recipient, an AFDC recipient, an individual described in section 1004(b), an eligible individual or is authorized to be so employed. (C) Covered child defined. In subparagraph (A), the term ``covered child'' means an eligible individual who is a child and is enrolled under a health plan as a family member described in section 1011(b)(2)(B). (2) Full-time equivalent employees; part-time employees. (A) In general. For purposes of this Act, a qualifying employee who is employed by an employer (i) for at least 120 hours in a month, is counted as 1 full-time equivalent employee for the month and shall be deemed to be employed on a full-time basis, or (ii) for at least 40 hours, but less than 120 hours, in a month, is counted as a fraction of a full-time equivalent employee in the month equal to the full-time employment ratio (as defined in subparagraph (B)) for the employee and shall be deemed to be employed on a part-time basis. (B) Full-time employment ratio defined. For purposes of this Act, the term ``full-time employment ratio'' means, with respect to a qualifying employee of an employer in a month, the lesser of 1 or the ratio of (i) the number of hours of employment such employee is employed by such employer for the month (as determined under paragraph (3)), to (ii) 120 hours. (C) Full-time employee. For purposes of this Act, the term ``full-time employee'' means, with respect to an employer, an employee who is employed on a full-time basis (as specified in subparagraph (A)) by the employer. (3) Hours of employment. (A) In general. For purposes of this Act, the Board shall specify the method for computing hours of employment for employees of an employer consistent with this paragraph. The Board shall take into account rules used for purposes of applying the Fair Labor Standards Act. (B) Hourly wage earners. In the case of an individual who receives compensation (in the form of hourly wages or compensation) for the performance of services, the individual is considered to be ``employed'' by an employer for an hour if compensation is payable with respect to that hour of employment, without regard to whether or not the employee is actually performing services during such hours. (4) Treatment of salaried employees and employee paid on contingent or bonus arrangements. In the case of an employee who receives compensation on a salaried basis or on the basis of a commission (or other contigent or bonus basis), rather than an hourly, the Board shall establish rules for the conversion of the compensation to hours of employment, taking into account the minimum monthly compensation levels for workers employed on a full-time basis under the Fair Labor Standards Act and other factors the Board considers relevant. (c) Definitions Relating to Self-Employment. In this Act: (1) Net earnings from self-employment. The term ``net earnings from self-employment'' has the meaning given such term under section 1402(a) of the Internal Revenue Code of 1986. (2) Self-employed individual. The term ``self-employed individual'' means, for a year, an individual who has net earnings from self-employment for the year.