(a) No computations of annual gross dollar volume are necessary to
determine coverage or exemption in those enterprises in which the gross
receipts regularly derived each year from the business are known by the
employers to be substantially in excess or substantially under the
minimum dollar volume specified in the applicable provision of the Act.
Also, where the enterprise or establishment, during the portion of its
current income tax year up to the end of the current payroll period, has
already had a gross volume of sales or business in excess of the dollar
amount specified in the statute, it is plain that its annual dollar
volume currently is in excess of the statutory amount, and that the Act
applies accordingly. The computation described in paragraph (b) of this
section, therefore need not be made. Nor is it required where the
enterprise or establishment has not yet in such current year exceeded
the statutory amount in its gross volume of sales or business, if it has
had, in the most recently ended year used by it for income tax purposes,
a gross volume of sales made and business done in excess of the amount
specified in the Act. In such event, the enterprise or establishment
will be deemed to have an annual gross volume in excess of the statutory
amount unless the employer establishes, through use of the method set
forth in paragraph (b) of this section, an annual gross volume of sales
made or business done which is less than the amount specified in the
Act. The method described in paragraph (b) of this section shall be
used, as intended by the Congress (see S. Rept. 145, 87th Cong. first
session, p. 38), for computation of annual dollar volume in all cases
when such a computation becomes necessary in order to determine the
applicability of provisions of the Act.
(b) In order to determine, when there may be doubt, whether an
enterprise or establishment has an annual gross volume of sales made or
business done in excess of the amount specified in the statute, and
analysis will be made at the beginning of each quarter-year so that the
employer will know whether or not the dollar volume tests have been met
for the purpose of complying with the law in the workweeks ending in the
current quarter-year. The total of the gross receipts from all its sales
or business during a 12-month period which immediately precedes the
quarter-year being tested will be the basis for analysis. When it is
necessary to make a determination for enterprises or establishments
which are operated on a calendar year basis for income tax or sales or
other accounting purposes the quarter-year periods tested will coincide
with the calendar quarters (January 1-March 31; April 1-June 30; July 1-
September 30; October 1-December 31). On the other hand, where
enterprises or establishments are operated on a fiscal year basis, which
consists of an annual period different from the calendar year, the four
quarters of the fiscal period will be used in lieu of calendar quarters
in computing the annual volume. Once either basis has been adopted it
must be used in making subsequent calculations. The sales records
maintained as a result of the accounting procedures used for tax or
other business purposes may be utilized in computing the annual dollar
volume provided the same accounting procedure is used consistently and
that such procedure accurately reflects the annual volume of sales or
business.
