Final rules 1
(a) Employer For purposes of this chapter, the term “employer” means any carrier (as defined in subsection (g)), and any company which is directly or indirectly owned or controlled by one or more such carriers or under common control therewith, and which operates any equipment or facility or performs any service (except trucking service, casual service, and the casual operation of equipment or facilities) in connection with the transportation of passengers or property by railroad, or the receipt, delivery, elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad, and any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of any such employer; except that the term “employer” shall not include any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general steam-railroad system of transportation, but shall not exclude any part of the general steam-railroad system of transportation now or hereafter operated by any other motive power. The Surface Transportation Board is hereby authorized and directed upon request of the Secretary, or upon complaint of any party interested, to determine after hearing whether any line operated by electric power falls within the terms of this exception. The term “employer” shall also include railroad associations, traffic associations, tariff bureaus, demurrage bureaus, weighing and inspection bureaus, collection agencies and other associations, bureaus, agencies, or organizations controlled and maintained wholly or principally by two or more employers as hereinbefore defined and engaged in the performance of services in connection with or incidental to railroad transportation; and railway labor organizations, national in scope, which have been or may be organized in accordance with the provisions of the Railway Labor Act, as amended (45 U.S.C., chapter 8), and their State and National legislative committees and their general committees and their insurance departments and their local lodges and divisions, established pursuant to the constitutions and bylaws of such organizations. The term “employer” shall not include any company by reason of its being engaged in the mining of coal, the supplying of coal to an employer where delivery is not beyond the mine tipple, and the operation of equipment or facilities therefor, or in any of such activities.
Amended 1976, 1995
- 1995 Pub. L. 104-88 Pub. L. 104–88, § 304(d)(1), substituted “Surface Transportation Board” for “Interstate Commerce Commission”.
- 1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1903(a)(10)(A), 1906(b)(13)(A), struck out “44 Stat. 577;” before “45 U.S.C., chapter 8” and “or his delegate” after “Secretary”, respectively.
Cases: Union Pacific Corp. v. United States, 5 F.3d 523 (Fed. Cir. 1993)
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(b) Employee For purposes of this chapter, the term “employee” means any individual in the service of one or more employers for compensation. The term “employee” includes an officer of an employer. The term “employee” shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple.
Amended 1976, 2014
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(100)(D), in first sentence substituted “compensation.” for “compensation; except that the term ‘employee’ shall include an employee of a local lodge or division defined as an employer in subsection (a) only if he was in the service of or in the employment relation to a carrier on or after August 29, 1935.” and struck out second sentence, which included pars. (1) to (4) and concluding provisions relating to an individual deemed to have been in the employment relation to a carrier on Aug. 29, 1935.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1903(a)(10)(B), struck out in provisions following par. (4) “50 Stat. 312;” before “45 U.S.C. 228f”.
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(c) Employee representative For purposes of this chapter, the term “employee representative” means any officer or official representative of a railway labor organization other than a labor organization included in the term “employer” as defined in subsection (a), who before or after June 29, 1937, was in the service of an employer as defined in subsection (a) and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act (45 U.S.C., chapter 8), as amended, and any individual who is regularly assigned to or regularly employed by such officer or official representative in connection with the duties of his office.
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1903(a)(10)(C), struck out “44 Stat. 577;” before “45 U.S.C. chapter 8”.
(d) Service For purposes of this chapter, an individual is in the service of an employer whether his service is rendered within or without the United States, if—
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(1) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or he is rendering professional or technical services and is integrated into the staff of the employer, or he is rendering, on the property used in the employer’s operations, other personal services the rendition of which is integrated into the employer’s operations, and
(2) he renders such service for compensation;
except that an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general committee of a railway-labor-organization employer, not conducting the principal part of its business in the United States, only when he is rendering service to it in the United States; and an individual shall be deemed to be in the service of such a local lodge or division only if—
(3) all, or substantially all, the individuals constituting its membership are employees of an employer conducting the principal part of its business in the United States; or
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(4) the headquarters of such local lodge or division is located in the United States;
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and an individual shall be deemed to be in the service of such a general committee only if—
(5) he is representing a local lodge or division described in paragraph (3) or (4) immediately above; or
(6) all, or substantially all, the individuals represented by it are employees of an employer conducting the principal part of its business in the United States; or
(7) he acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer, but in such case if his office or headquarters is not located in the United States and the individuals represented by such general committee are employees of an employer not conducting the principal part of its business in the United States, only such proportion of the remuneration for such service shall be regarded as compensation as the proportion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its jurisdiction, unless such mileage formula is inapplicable, in which case such other formula as the Railroad Retirement Board may have prescribed pursuant to section 1(c) of the Railroad Retirement Act of 1937 (45 U.S.C. 228a) shall be applicable, and if the application of such mileage formula, or such other formula as the Board may prescribe, would result in the compensation of the individual being less than 10 percent of his remuneration for such service, no part of such remuneration shall be regarded as compensation;
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1903(a)(10)(D), struck out “50 Stat. 308;” before “45 U.S.C. 228a”.
(e) Compensation For purposes of this chapter—
(1) The term “compensation” means any form of money remuneration paid to an individual for services rendered as an employee to one or more employers. Such term does not include (i) the amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of his dependents under a plan or system established by an employer which makes provision for his employees generally (or for his employees generally and their dependents) or for a class or classes of his employees (or for a class or classes of his employees and their dependents), on account of sickness or accident disability or medical or hospitalization expenses in connection with sickness or accident disability or death, except that this clause does not apply to a payment for group-term life insurance to the extent that such payment is includible in the gross income of the employee, (ii) tips (except as is provided under paragraph (3)), (iii) an amount paid specifically—either as an advance, as reimbursement or allowance—for traveling or other bona fide and necessary expenses incurred or reasonably expected to be incurred in the business of the employer provided any such payment is identified by the employer either by a separate payment or by specifically indicating the separate amounts where both wages and expense reimbursement or allowance are combined in a single payment, or (iv) any remuneration which would not (if chapter 21 applied to such remuneration) be treated as wages (as defined in section 3121(a)) by reason of section 3121(a)(5). Such term does not include remuneration for service which is performed by a nonresident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act, as amended, and which is performed to carry out the purpose specified in subparagraph (F), (J), (M), or (Q), as the case may be. For the purpose of determining the amount of taxes under sections 3201 and 3221, compensation earned in the service of a local lodge or division of a railway-labor-organization employer shall be disregarded with respect to any calendar month if the amount thereof is less than $25. Compensation for service as a delegate to a national or international convention of a railway labor organization defined as an “employer” in subsection (a) of this section shall be disregarded for purposes of determining the amount of taxes due pursuant to this chapter if the individual rendering such service has not previously rendered service, other than as such a delegate, which may be included in his “years of service” for purposes of the Railroad Retirement Act. Nothing in the regulations prescribed for purposes of chapter 24 (relating to wage withholding) which provides an exclusion from “wages” as used in such chapter shall be construed to require a similar exclusion from “compensation” in regulations prescribed for purposes of this chapter.
Amended 1954, 1965, 1968, 1975, 1976, 1981, 1983, 1988, 1989, 1994
- 1994 Pub. L. 103-296 Pub. L. 103–296 substituted “(J), (M), or (Q)” for “(J), or (M)” in two places.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 10207(b), inserted at end “Nothing in the regulations prescribed for purposes of chapter 24 (relating to wage withholding) which provides an exclusion from ‘wages’ as used in such chapter shall be construed to require a similar exclusion from ‘compensation’ in regulations prescribed for purposes of this chapter.”
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 10206(a), substituted “(iii)” for “or (iii)” and inserted “, or (iv) any remuneration which would not (if chapter 21 applied to such remuneration) be treated as wages (as defined in section 3121(a)) by reason of section 3121(a)(5)”.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 10205(a), inserted “or death, except that this clause does not apply to a payment for group-term life insurance to the extent that such payment is includible in the gross income of the employee” before “, (ii) tips”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1001(d)(2)(C)(ii), substituted “(F), (J), or (M)” for “(F) or (J)” in two places.
- 1983 Pub. L. 98-76 Pub. L. 98–76, § 225(a)(3), struck out provisions that compensation which was paid in one calendar month but which would be payable in a prior or subsequent taxable month but for the fact prescribed date of payment would fall on a Saturday, Sunday or legal holiday would be deemed to have been paid in such prior or subsequent taxable month and that compensation which was earned during the period for which the Secretary would require a return of taxes under this chapter to be made and which was payable during the calendar month following such period would be deemed to have been paid during such period only.
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 743(a), inserted after third sentence provision that “Compensation which is paid in one calendar month but which would be payable in a prior or subsequent taxable month but for the fact that prescribed date of payment would fall on a Saturday, Sunday or legal holiday shall be deemed to have been paid in such prior or subsequent taxable month.”
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 741(d)(2), struck out cl. (iii) exclusion from term “compensation” the voluntary payment by an employer, without deduction from the remuneration of the employee, of the tax imposed on such employee by section 3201, redesignated as cl. (iii) provisions formerly designated (iv).
- 1976 Pub. L. 94-547 Pub. L. 94–547 provided that “compensation” not include amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of his dependents under a plan or system established by an employer which makes provision for his employees generally (or for his employees generally and their dependents) or for a class or classes of his employees (or for a class or classes of his employees and their dependents), on account of sickness or accident disability or medical or hospitalization expenses in connection with sickness or accident disability, or an amount paid specifically—either as an advance, as reimbursement or allowance—for traveling or other bona fide and necessary expenses incurred or reasonably expected to be incurred in the business of the employer provided any such payment is identified by the employer either by a separate payment or by specifically indicating the separate amounts where both wages and expense reimbursement or allowance are combined in a single payment.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
- 1975 Pub. L. 94-93 Pub. L. 94–93, § 204, substituted “paid to an individual for services rendered as an employee to one or more employers” for “earned by an individual for services rendered as an employee to one or more employers, or as an employee representative, including remuneration paid for time lost as an employee, but remuneration paid for time lost shall be deemed earned in the month in which such time is lost”.
- 1975 Pub. L. 94-92 Pub. L. 94–92 increased from $3 to $25 amount of compensation earned in the service of a local lodge or division of a railway-labor-organization employer to be disregarded with respect to any calendar month in the determination of amount of taxes under sections 3201 and 3221.
- 1968 Pub. L. 90-624 Pub. L. 90–624 inserted provision excluding remuneration for service performed by nonresident alien individuals temporarily in the United States as participants in a cultural exchange or training program.
- 1965 Pub. L. 89-212 Pub. L. 89–212, § 2(b)(1), inserted “(except as is provided under paragraph (3))”.
- 1954 Act Aug. 31, 1954, excluded from taxation compensation, for service as a delegate to a national or international convention of a railway labor organization, of any person who has no other previous creditable service.
Cases: Wisconsin Central Ltd. v. United States, 585 U.S. 274 (2018); BNSF Ry. Co. v. Loos, 586 U.S. 310 (2019)
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(2) Application of contribution bases
Amended 1975, 1981, 1983
- 1983 Pub. L. 98-76 Pub. L. 98–76, § 225(a)(1), amended par. (2) generally, substituting provisions which exclude compensation in excess of applicable base, which define “applicable base”, and which provide for the applicability of successor employer provisions to this paragraph, for provisions that a payment made by an employer to an individual through the employer’s payroll would be presumed, in the absence of evidence to the contrary, to be compensation for service rendered by such individual as an employee of the employer in the period with respect to which the payment was made, that an employee receiving retroactive wage payments would be deemed to be paid compensation in the period during which such compensation was earned only upon a written request by such employee, made within six months following the payment, and a showing that such compensation was earned during a period other than the period in which it was paid, that an employee would be deemed to be paid “for time lost” the amount he was paid by an employer with respect to an identifiable period of absence from the active service of the employer, including absence on account of personal injury, and the amount he was paid by the employer for loss of earnings resulting from his displacement to a less remunerative position or occupation, and that if a payment was made by an employer with respect to a personal injury and included pay for time lost, the total payment would be deemed to be paid for time lost unless, at the time of payment, a part of such payment was specifically apportioned to factors other than time lost, in which event only such part of the payment as was not so apportioned would be deemed to be paid for time lost.
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 743(b), (c), inserted first sentence respecting presumption of a payment through the employer’s payroll as being compensation for services rendered as an employee in the period with respect to which payment is made, and in second sentence following “an employee” inserted “receiving retroactive wage payments”.
- 1975 Pub. L. 94-93 Pub. L. 94–93, §§ 205, 206, substituted provision that an employee shall be deemed to be paid compensation in the period during which such compensation is earned only upon a written request by such employee, made within six months following the payment, and a showing that such compensation was earned during a period other than the period in which it was paid for provision that a payment made by an employer to an individual through the employer’s payroll shall be presumed, in the absence of evidence to the contrary, to be compensation for service rendered by such individual as an employee of the employer in the period with respect to which payment is made.
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(A) Compensation in excess of applicable base excluded
(i) In general The term “compensation” does not include that part of remuneration paid during any calendar year to an individual by an employer after remuneration equal to the applicable base has been paid during such calendar year to such individual by such employer for services rendered as an employee to such employer.
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(ii) Remuneration not treated as compensation excluded There shall not be taken into account under clause (i) remuneration which (without regard to clause (i)) is not treated as compensation under this subsection.
(iii) Hospital insurance taxes Clause (i) shall not apply to—
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13207(c)(1), added cl. (iii).
(I) so much of the rate applicable under section 3201(a) or 3221(a) as does not exceed the rate of tax in effect under section 3101(b), and
(II) so much of the rate applicable under section 3211(a) as does not exceed the rate of tax in effect under section 1401(b).
Amended 2001
- 2001 Pub. L. 107-90 Pub. L. 107–90, § 204(e)(3), substituted “3211(a)” for “3211(a)(1)”.
(B) Applicable base
(i) Tier 1 taxes Except as provided in clause (ii), the term “applicable base” means for any calendar year the contribution and benefit base determined under section 230 of the Social Security Act for such calendar year.
Amended 1990, 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13207(c)(2), amended heading and text of cl. (i) generally. Prior to amendment, text read as follows:
- 1993 “(I) In general.—Except as provided in subclause (II) of this clause and in clause (ii), the term ‘applicable base’ means for any calendar year the contribution and benefit base determined under section 230 of the Social Security Act for such calendar year.
- 1993 “(II) Hospital insurance taxes.—For purposes of applying so much of the rate applicable under section 3201(a) or 3221(a) (as the case may be) as does not exceed the rate of tax in effect under section 3101(b), and for purposes of applying so much of the rate of tax applicable under section 3211(a)(1) as does not exceed the rate of tax in effect under section 1401(b), the term ‘applicable base’ means for any calendar year the applicable contribution base determined under section 3121(x)(2) for such calendar year.”
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11331(c), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “Except as provided in clause (ii), the term ‘applicable base’ means for any calendar year the contribution and benefit base determined under section 230 of the Social Security Act for such calendar year.”
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(ii) Tier 2 taxes, etc. For purposes of—
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(I) the taxes imposed by sections 3201(b), 3211(b), and 3221(b), and
Amended 2001
- 2001 Pub. L. 107-90 Pub. L. 107–90, § 204(e)(4), substituted “3211(b)” for “3211(a)(2)”.
(II) computing average monthly compensation under section 3(j) of the Railroad Retirement Act of 1974 (except with respect to annuity amounts determined under subsection (a) or (f)(3) of section 3 of such Act),
clause (2) of the first sentence, and the second sentence, of subsection (c) of section 230 of the Social Security Act shall be disregarded.
(C) Successor employers For purposes of this paragraph, the second sentence of section 3121(a)(1) (relating to successor employers) shall apply, except that—
(i) the term “services” shall be substituted for “employment” each place it appears,
(ii) the term “compensation” shall be substituted for “remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection)” each place it appears, and
(iii) the terms “employer”, “services”, and “compensation” shall have the meanings given such terms by this section.
(3) Solely for purposes of the taxes imposed by section 3201 and other provisions of this chapter insofar as they relate to such taxes, the term “compensation” also includes cash tips received by an employee in any calendar month in the course of his employment by an employer unless the amount of such cash tips is less than $20.
Amended 1965, 1983
- 1983 Pub. L. 98-76 Pub. L. 98–76, § 225(c)(1)(C), (6), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”, and “such taxes” for “such tax”.
- 1965 Pub. L. 89-212 Pub. L. 89–212, § 2(b)(2), added par. (3).
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Amended 1981
- 1981 Pub. L. 97-123 Pub. L. 97–123 added par. (4).
(A) For purposes of applying sections 3201(a), 3211(a), and 3221(a), in the case of payments made to an employee or any of his dependents on account of sickness or accident disability, clause (i) of the second sentence of paragraph (1) shall exclude from the term “compensation” only—
Amended 1983, 2001
- 2001 Pub. L. 107-90 Pub. L. 107–90, § 204(e)(3), substituted “3211(a)” for “3211(a)(1)”.
- 1983 Pub. L. 98-76 Pub. L. 98–76, § 225(c)(7), substituted “3201(a), 3211(a)(1), and 3221(a)” for “3201(b) and 3221(b) (and so much of section 3211(a) as relates to the rates of the taxes imposed by sections 3101 and 3111)”.
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(i) payments which are received under a workmen’s compensation law, and
(ii) benefits received under the Railroad Retirement Act of 1974.
(B) Notwithstanding any other provision of law, for purposes of the sections specified in subparagraph (A), the term “compensation” shall include benefits paid under section 2(a) of the Railroad Unemployment Insurance Act for days of sickness, except to the extent that such sickness (as determined in accordance with standards prescribed by the Railroad Retirement Board) is the result of on-the-job injury.
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(C) Under regulations prescribed by the Secretary, subparagraphs (A) and (B) shall not apply to payments made after the expiration of a 6-month period comparable to the 6-month period described in section 3121(a)(4).
(D) Except as otherwise provided in regulations prescribed by the Secretary, any third party which makes a payment included in compensation solely by reason of subparagraph (A) or (B) shall be treated for purposes of this chapter as the employer with respect to such compensation.
(5) The term “compensation” shall not include any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income under section 74(c), 108(f)(4), 117, or 132.
Amended 1984, 1986, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 320(b)(2), inserted “108(f)(4),” after “74(c),”.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 122(e)(2), inserted reference to section 74(c).
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 531(d)(2), added par. (5).
(6) The term “compensation” shall not include any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 127.
Amended 1984, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1899A(41), redesignated par. (6), relating to amounts excludable under section 120, as (7).
- 1984 Pub. L. 98-611 Pub. L. 98–611 added par. (6) relating to amounts excludable under section 127.
- 1984 Pub. L. 98-612 Pub. L. 98–612 added par. (6) relating to amounts excludable under section 120.
[(7) Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(19)(B)(v), Dec. 19, 2014, 128 Stat. 4040.]
Amended 1986, 2014
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(19)(B)(v), struck out par. (7) which read as follows: “The term ‘compensation’ shall not include any contribution, payment, or service provided by an employer which may be excluded from the gross income of an employee, his spouse, or his dependents, under the provisions of section 120 (relating to amounts received under qualified group legal services plans).”
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1899A(41), redesignated par. (6), relating to amounts excludable under section 120, as (7).
(8) Treatment of certain deferred compensation and salary reduction arrangements
Amended 1988, 1989, 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11704(a)(19), redesignated pars. (9) and (10) as (8) and (9), respectively.
- 1989 Pub. L. 101-140 Pub. L. 101–140 amended subsec. (e) to read as if amendments by Pub. L. 100–647, § 1011B(a)(22)(B), had not been enacted, see 1988 Amendment note below.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1011B(a)(22)(B), added par. (8).
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(A) Certain employer contributions treated as compensation Nothing in any paragraph of this subsection (other than paragraph (2)) shall exclude from the term “compensation” any amount described in subparagraph (A) or (B) of section 3121(v)(1).
(B) Treatment of certain nonqualified deferred compensation The rules of section 3121(v)(2) which apply for purposes of chapter 21 shall also apply for purposes of this chapter.
(9) Meals and lodging The term “compensation” shall not include the value of meals or lodging furnished by or on behalf of the employer if at the time of such furnishing it is reasonable to believe that the employee will be able to exclude such items from income under section 119.
Amended 1989, 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11704(a)(19), redesignated pars. (9) and (10) as (8) and (9), respectively.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 10206(b), added par. (9).
(10) Archer MSA contributions The term “compensation” shall not include any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(b).
Amended 1989, 1990, 1996, 2000
- 2000 Pub. L. 106-554 Pub. L. 106–554 substituted “Archer MSA” for “Medical savings account” in heading.
- 1996 Pub. L. 104-191 Pub. L. 104–191 added par. (10).
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11704(a)(19), redesignated pars. (9) and (10) as (8) and (9), respectively.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 10207(a), added par. (10).
(11) Health savings account contributions The term “compensation” shall not include any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d).
Amended 2003
- 2003 Pub. L. 108-173 Pub. L. 108–173 added par. (11).
(12) Qualified stock options The term “compensation” shall not include any remuneration on account of—
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 251(a)(2), added par. (12).
(A) a transfer of a share of stock to any individual pursuant to an exercise of an incentive stock option (as defined in section 422(b)) or under an employee stock purchase plan (as defined in section 423(b)), or
(B) any disposition by the individual of such stock.
(f) Company For purposes of this chapter, the term “company” includes corporations, associations, and joint-stock companies.
(g) Carrier For purposes of this chapter, the term “carrier” means a rail carrier subject to part A of subtitle IV of title 49.
Amended 1978, 1995
- 1995 Pub. L. 104-88 Pub. L. 104–88, § 304(d)(2), substituted “a rail carrier subject to part A of subtitle IV” for “an express carrier, sleeping car carrier, or rail carrier providing transportation subject to subchapter I of chapter 105”.
- 1978 Pub. L. 95-473 Pub. L. 95–473 substituted “express carrier, sleeping car carrier, or rail carrier providing transportation subject to subchapter I of chapter 105 of title 49” for “express company, sleeping-car company, or carrier by railroad, subject to part I of the Interstate Commerce Act (49 U.S.C., chapter 1)”.
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(h) Tips constituting compensation, time deemed paid For purposes of this chapter, tips which constitute compensation for purposes of the taxes imposed by section 3201 shall be deemed to be paid at the time a written statement including such tips is furnished to the employer pursuant to section 6053(a) or (if no statement including such tips is so furnished) at the time received.
Amended 1965, 1983
- 1983 Pub. L. 98-76 Pub. L. 98–76, § 225(c)(8), substituted “taxes imposed by section 3201” for “tax imposed under section 3201”, and struck out “; and tips so deemed to be paid in any month shall be deemed paid for services rendered in such month” after “time received”.
- 1965 Pub. L. 89-212 Pub. L. 89–212, § 2(b)(3), added subsec. (h).
(i) Concurrent employment by 2 or more employers For purposes of this chapter, if 2 or more related corporations which are employers concurrently employ the same individual and compensate such individual through a common paymaster which is 1 of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.
Amended 1983
- 1983 Pub. L. 98-76 Pub. L. 98–76, § 225(b), added subsec. (i).