Not affiliated with the US Social Security Administration

What are the criteria for Test II: Decisions Affecting Success of Enterprise?

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1230. What are the criteria for Test II: Decisions Affecting Success of Enterprise?

Under Test II, you may be materially participating if you are regularly and frequently making decisions that significantly affect the success of the enterprise. Making final decisions contributing to or affecting the success of the enterprise count toward material participation. These decisions include:

  1. What, when, and where to plant, cultivate, dust or spray;

  2. When to harvest the crop;

  3. What goods to buy, sell or rent;

  4. What standards to follow; and

  5. What records to keep, reports to make and bills to pay, etc., counts toward material participation.

Last Revised: March, 2001


Sponsored Links

Ads

Ads

Not affiliated with the US Social Security Administration