To amend title II of the Social Security Act and the Internal Revenue Code of 1986 to provide that an employee whose employment for an employer is not otherwise covered for social security benefit purposes may irrevocably elect to have his or her employment with such employer treated as so covered and subject to social security taxes.

Summary: Social Security Exemption Relief Act of 2009 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act and the Internal Revenue Code to allow an employee, whose employment is not otherwise covered for Social Security benefit purposes (as in the case of an independent contractor), to elect irrevocably to have that employment treated as so covered and the employer be subject to Social Security taxes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Exemption Relief Act 
of 2009''.

SEC. 2. ELECTION OF COVERAGE FOR CERTAIN NONCOVERED EMPLOYEES.

    (a) In General.--Section 210 of the Social Security Act (42 U.S.C. 
410)) is amended by adding at the end the following new subsection:

   ``Inclusion of Service Under Elections Made by Certain Noncovered 
                               Employees

    ``(s) Notwithstanding any other provision of this section, the term 
`employment' shall include any service with respect to which an 
election under section 3121(k)(2) of the Internal Revenue Code of 1986 
applies.''.
    (b) Election.--Section 3121 of the Internal Revenue Code of 1986 
(definitions applicable to tax under Federal Insurance Contributions 
Act) is amended by inserting after subsection (j) the following new 
subsection:
    ``(k) Optional Inclusion of Coverage of Service of Certain 
Noncovered Employees.--
            ``(1) Inclusion of service as employment.--Notwithstanding 
        any other provision of this section, the term `employment' 
        shall for purposes of this chapter include any service with 
        respect to which an election under paragraph (2) applies.
            ``(2) Election of inclusion.--
                    ``(A) In general.--Any individual whose service for 
                any employer is excluded from `employment' under 
                subsection (b) may, at his option, elect--
                            ``(i) to have any such service performed by 
                        him, during pay periods commencing after 30 
                        days after the date of such election, included 
                        as `employment',
                            ``(ii) to be subject to the taxes imposed 
                        by section 3101 for such taxable year with 
                        respect to such service, and
                            ``(iii) to have the employer subject to the 
                        tax under section 3111 for such taxable year 
                        with respect to such service.
                    ``(B) Applicability of election.--An election made 
                by an individual under this paragraph--
                            ``(i) shall apply with respect to all 
                        service performed by such individual for the 
                        employer described in subparagraph (A) during 
                        pay periods described in subparagraph (A)(i) to 
                        the extent that such service would not 
                        constitute `employment' for purposes of this 
                        chapter but for this subsection, and
                            ``(ii) shall be irrevocable.
                    ``(C) Requirement of minimum annual remuneration.--
                An election made by an individual under this paragraph 
                shall take effect only if such individual has received 
                remuneration in the amount of at least $400 for service 
                of the type to which the election applies which was 
                performed by such individual for the employer described 
                in subparagraph (A) during the taxable year in which 
                the election is made.
                    ``(D) Manner of election.--
                            ``(i) In general.--An election by an 
                        individual under this paragraph may be made 
                        only in such form and manner as shall be 
                        prescribed by the Secretary, in consultation 
                        with the Commissioner of Social Security, 
                        including timely written notice of the election 
                        provided by the employee to the employer.
                            ``(ii) Declaration of minimum annual 
                        remuneration.--An election shall not be treated 
                        as made in accordance with clause (i) unless 
                        the election includes a written declaration by 
                        the employee, in such form as shall be 
                        prescribed by the Secretary, that the 
                        requirements of subparagraph (C) have been met 
                        in connection with the election.
            ``(3) Regulations.--The Secretary, in consultation with the 
        Commissioner of Social Security, shall prescribe such 
        regulations as may be necessary or appropriate to carry out 
        this subsection. Such regulations shall--
                    ``(A) establish procedures to deal with any 
                administrative or other problems which may result from 
                elections made under this subsection;
                    ``(B) provide for the interchange of information 
                between the Secretary and the Commissioner; and
                    ``(C) include such other provisions, conditions, 
                and requirements as may be necessary or appropriate for 
                the administration of this subsection and the related 
                provisions of title II of the Social Security Act.''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply only with respect to 
service performed in taxable years beginning after 90 days after the 
date of the enactment of this Act.