26 U.S.C. § 3102 : US Code - Section 3102: Deduction of tax from wages

Search 26 U.S.C. § 3102 : US Code - Section 3102: Deduction of tax from wages

(a) Requirement
The tax imposed by section 3101 shall be collected by the
employer of the taxpayer, by deducting the amount of the tax from
the wages as and when paid. An employer who in any calendar year
pays to an employee cash remuneration to which paragraph (7)(B) of
section 3121(a) is applicable may deduct an amount equivalent to
such tax from any such payment of remuneration, even though at the
time of payment the total amount of such remuneration paid to the
employee by the employer in the calendar year is less than the
applicable dollar threshold (as defined in section 3121(x)) for
such year; and an employer who in any calendar year pays to an
employee cash remuneration to which paragraph (7)(C) or (10) of
section 3121(a) is applicable may deduct an amount equivalent to
such tax from any such payment of remuneration, even though at the
time of payment the total amount of such remuneration paid to the
employee by the employer in the calendar year is less than $100;
and an employer who in any calendar year pays to an employee cash
remuneration to which paragraph (8)(B) of section 3121(a) is
applicable may deduct an amount equivalent to such tax from any
such payment of remuneration, even though at the time of payment
the total amount of such remuneration paid to the employee by the
employer in the calendar year is less than $150; and an employer
who is furnished by an employee a written statement of tips
(received in a calendar month) pursuant to section 6053(a) to which
paragraph (12)(B) of section 3121(a) is applicable may deduct an
amount equivalent to such tax with respect to such tips from any
wages of the employee (exclusive of tips) under his control, even
though at the time such statement is furnished the total amount of
the tips included in statements furnished to the employer as having
been received by the employee in such calendar month in the course
of his employment by such employer is less than $20.
(b) Indemnification of employer
Every employer required so to deduct the tax shall be liable for
the payment of such tax, and shall be indemnified against the
claims and demands of any person for the amount of any such payment
made by such employer.
(c) Special rule for tips
(1) In the case of tips which constitute wages, subsection (a)
shall be applicable only to such tips as are included in a written
statement furnished to the employer pursuant to section 6053(a),
and only to the extent that collection can be made by the employer,
at or after the time such statement is so furnished and before the
close of the 10th day following the calendar month (or, if
paragraph (3) applies, the 30th day following the year) in which
the tips were deemed paid, by deducting the amount of the tax from
such wages of the employee (excluding tips, but including funds
turned over by the employee to the employer pursuant to paragraph
(2)) as are under control of the employer.
(2) If the tax imposed by section 3101, with respect to tips
which are included in written statements furnished in any month to
the employer pursuant to section 6053(a), exceeds the wages of the
employee (excluding tips) from which the employer is required to
collect the tax under paragraph (1), the employee may furnish to
the employer on or before the 10th day of the following month (or,
if paragraph (3) applies, on or before the 30th day of the
following year) an amount of money equal to the amount of the
excess.
(3) The Secretary may, under regulations prescribed by him,
authorize employers -
(A) to estimate the amount of tips that will be reported by the
employee pursuant to section 6053(a) in any calendar year,
(B) to determine the amount to be deducted upon each payment of
wages (exclusive of tips) during such year as if the tips so
estimated constituted the actual tips so reported, and
(C) to deduct upon any payment of wages (other than tips, but
including funds turned over by the employee to the employer
pursuant to paragraph (2)) to such employee during such year (and
within 30 days thereafter) such amount as may be necessary to
adjust the amount actually deducted upon such wages of the
employee during the year to the amount required to be deducted in
respect of tips included in written statements furnished to the
employer during the year.
(4) If the tax imposed by section 3101 with respect to tips which
constitute wages exceeds the portion of such tax which can be
collected by the employer from the wages of the employee pursuant
to paragraph (1) or paragraph (3), such excess shall be paid by the
employee.
(d) Special rule for certain taxable group-term life insurance
benefits
(1) In general
In the case of any payment for group-term life insurance to
which this subsection applies -
(A) subsection (a) shall not apply,
(B) the employer shall separately include on the statement
required under section 6051 -
(i) the portion of the wages which consists of payments for
group-term life insurance to which this subsection applies,
and
(ii) the amount of the tax imposed by section 3101 on such
payments, and
(C) the tax imposed by section 3101 on such payments shall be
paid by the employee.
(2) Benefits to which subsection applies
This subsection shall apply to any payment for group-term life
insurance to the extent -
(A) such payment constitutes wages, and
(B) such payment is for coverage for periods during which an
employment relationship no longer exists between the employee
and the employer.
(e) Special rule for certain transferred Federal employees
In the case of any payments of wages for service performed in the
employ of an international organization pursuant to a transfer to
which the provisions of section 3121(y) are applicable -
(1) subsection (a) shall not apply,
(2) the head of the Federal agency from which the transfer was
made shall separately include on the statement required under
section 6051 -
(A) the amount determined to be the amount of the wages for
such service, and
(B) the amount of the tax imposed by section 3101 on such
payments, and
(3) the tax imposed by section 3101 on such payments shall be
paid by the employee.