1764                               Laws of Maryland                        [Ch. 790

Article for full tax credit against the tax imposed by the Federal
Unemployment Tax Act, is required, pursuant to that Act, to be an
"employer" under this Article.

(g) Employment and interstate employment.—(1) "Employ-
ment" means service, including service in interstate commerce, per-
formed for remuneration or under any contract of hire, written or
oral, express or implied.

(2)    The term "employment" shall include an individual's service,
wherever performed, within the United States, the Virgin Islands
or Canada, if that service is not covered under the unemployment
insurance law of any other state, the Virgin Islands or Canada, and
the place from which the service is directed or controlled is in this
State, and the term "employment" shall include an individual's entire
service, performed within or both within and without this State if:

[(A)] (i) The service is localized in this State; or

[(B)] (ii) The service is not localized in any state, but some
of the service is performed in this State and [(i)] the base of
operations, or, if[,] there is no base of operations, then the place
from which [such] that service is directed or controlled, is in this
State; or [(ii)] the base of operations or place from which [such]
that service is directed or controlled is not in any state in which some
part of the service is performed, but the individual's residence is in
this State.

(3)    Services covered by an election pursuant to Section 9 of this
article.

(4)    Services covered by an arrangement pursuant to Section 19
of this article between the Executive Director and an agency charged
with the administration of any other state or Federal unemployment
insurance law pursuant to which all services performed by an indi-
vidual for an employing unit are deemed to be performed entirely
within this State, shall be deemed to be employment if the Executive
Director has approved an election of the employing unit for which
[such] those services are performed, pursuant to which the entire
service of [such] that individual during the period covered by
[such] that election is deemed to be insured work.

(5)    Service shall be deemed to be localized within a state if:

[(A)] (i) The service is performed entirely within [such] that
state; or

[(B)] (ii) The service is performed both within and without
[such] that state, but the service performed [without such] outside
that state is incidental to the individual's service within the state,
for example, is temporary or transitory in nature or consists of
isolated transactions.

(6)    Services performed by an individual for wages or under any
contract of hire shall be deemed to be employment subject to this
article, irrespective of whether the common-law relationship of master
and servant exists, unless and until it is shown to the satisfaction
of the Executive Director that:

[(A)] (i) [Such] That individual has been and will continue
to be free from control or direction over the performance of [such]
those services, both under his contract of service and in fact; and