26 U.S.C. § 3401 : US Code - Section 3401: Definitions

Search 26 U.S.C. § 3401 : US Code - Section 3401: Definitions

(a) Wages
For purposes of this chapter, the term "wages" means all
remuneration (other than fees paid to a public official) for
services performed by an employee for his employer, including the
cash value of all remuneration (including benefits) paid in any
medium other than cash; except that such term shall not include
remuneration paid -
(1) for active service performed in a month for which such
employee is entitled to the benefits of section 112 (relating to
certain combat zone compensation of members of the Armed Forces
of the United States) to the extent remuneration for such service
is excludable from gross income under such section; or
(2) for agricultural labor (as defined in section 3121(g))
unless the remuneration paid for such labor is wages (as defined
in section 3121(a)); or
(3) for domestic service in a private home, local college club,
or local chapter of a college fraternity or sorority; or
(4) for service not in the course of the employer's trade or
business performed in any calendar quarter by an employee, unless
the cash remuneration paid for such service is $50 or more and
such service is performed by an individual who is regularly
employed by such employer to perform such service. For purposes
of this paragraph, an individual shall be deemed to be regularly
employed by an employer during a calendar quarter only if -
(A) on each of some 24 days during such quarter such
individual performs for such employer for some portion of the
day service not in the course of the employer's trade or
business; or
(B) such individual was regularly employed (as determined
under subparagraph (A)) by such employer in the performance of
such service during the preceding calendar quarter; or
(5) for services by a citizen or resident of the United States
for a foreign government or an international organization; or
(6) for such services, performed by a nonresident alien
individual, as may be designated by regulations prescribed by the
Secretary; or
[(7) Repealed. Pub. L. 89-809, title I, Sec. 103(k), Nov. 13,
1966, 80 Stat. 1554]
(8)(A) for services for an employer (other than the United
States or any agency thereof) -
(i) performed by a citizen of the United States if, at the
time of the payment of such remuneration, it is reasonable to
believe that such remuneration will be excluded from gross
income under section 911; or
(ii) performed in a foreign country or in a possession of the
United States by such a citizen if, at the time of the payment
of such remuneration, the employer is required by the law of
any foreign country or possession of the United States to
withhold income tax upon such remuneration; or
(B) for services for an employer (other than the United States
or any agency thereof) performed by a citizen of the United
States within a possession of the United States (other than
Puerto Rico), if it is reasonable to believe that at least 80
percent of the remuneration to be paid to the employee by such
employer during the calendar year will be for such services; or
(C) for services for an employer (other than the United States
or any agency thereof) performed by a citizen of the United
States within Puerto Rico, if it is reasonable to believe that
during the entire calendar year the employee will be a bona fide
resident of Puerto Rico; or
(D) for services for the United States (or any agency thereof)
performed by a citizen of the United States within a possession
of the United States to the extent the United States (or such
agency) withholds taxes on such remuneration pursuant to an
agreement with such possession; or
(9) for services performed by a duly ordained, commissioned, or
licensed minister of a church in the exercise of his ministry or
by a member of a religious order in the exercise of duties
required by such order; or
(10)(A) for services performed by an individual under the age
of 18 in the delivery or distribution of newspapers or shopping
news, not including delivery or distribution to any point for
subsequent delivery or distribution; or
(B) for services performed by an individual in, and at the time
of, the sale of newspapers or magazines to ultimate consumers,
under an arrangement under which the newspapers or magazines are
to be sold by him at a fixed price, his compensation being based
on the retention of the excess of such price over the amount at
which the newspapers or magazines are charged to him, whether or
not he is guaranteed a minimum amount of compensation for such
services, or is entitled to be credited with the unsold
newspapers or magazines turned back; or
(11) for services not in the course of the employer's trade or
business, to the extent paid in any medium other than cash; or
(12) to, or on behalf of, an employee or his beneficiary -
(A) from or to a trust described in section 401(a) which is
exempt from tax under section 501(a) at the time of such
payment unless such payment is made to an employee of the trust
as remuneration for services rendered as such employee and not
as a beneficiary of the trust; or
(B) under or to an annuity plan which, at the time of such
payment, is a plan described in section 403(a); or
(C) for a payment described in section 402(h)(1) and (2) if,
at the time of such payment, it is reasonable to believe that
the employee will be entitled to an exclusion under such
section for payment; or
(D) under an arrangement to which section 408(p) applies; or
(E) under or to an eligible deferred compensation plan which,
at the time of such payment, is a plan described in section
457(b) which is maintained by an eligible employer described in
section 457(e)(1)(A),(!1) or
(13) pursuant to any provision of law other than section 5(c)
or 6(1) of the Peace Corps Act, for service performed as a
volunteer or volunteer leader within the meaning of such Act; or
(14) in the form of group-term life insurance on the life of an
employee; or
(15) to or on behalf of an employee if (and to the extent that)
at the time of the payment of such remuneration it is reasonable
to believe that a corresponding deduction is allowable under
section 217 (determined without regard to section 274(n)); or
(16)(A) as tips in any medium other than cash;
(B) as cash tips to an employee in any calendar month in the
course of his employment by an employer unless the amount of such
cash tips is $20 or more; (!2)
(17) for service described in section 3121(b)(20); (!2)
(18) for 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, 129, 134(b)(4), or 134(b)(5); (!2)
(19) for 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; (!2)
(20) for any medical care reimbursement made to or for the
benefit of an employee under a self-insured medical reimbursement
plan (within the meaning of section 105(h)(6)); (!2)
(21) for 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); or
(22) 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).
The term "wages" includes any amount includible in gross income of
an employee under section 409A and payment of such amount shall be
treated as having been made in the taxable year in which the amount
is so includible.
(b) Payroll period
For purposes of this chapter, the term "payroll period" means a
period for which a payment of wages is ordinarily made to the
employee by his employer, and the term "miscellaneous payroll
period" means a payroll period other than a daily, weekly,
biweekly, semimonthly, monthly, quarterly, semiannual or annual
payroll period.
(c) Employee
For purposes of this chapter, the term "employee" includes an
officer, employee, or elected official of the United States, a
State, or any political subdivision thereof, or the District of
Columbia, or any agency or instrumentality of any one or more of
the foregoing. The term "employee" also includes an officer of a
corporation.
(d) Employer
For purposes of this chapter, the term "employer" means the
person for whom an individual performs or performed any service, of
whatever nature, as the employee of such person, except that -
(1) if the person for whom the individual performs or performed
the services does not have control of the payment of the wages
for such services, the term "employer" (except for purposes of
subsection (a)) means the person having control of the payment of
such wages, and
(2) in the case of a person paying wages on behalf of a
nonresident alien individual, foreign partnership, or foreign
corporation, not engaged in trade or business within the United
States, the term "employer" (except for purposes of subsection
(a)) means such person.
(e) Number of withholding exemptions claimed
For purposes of this chapter, the term "number of withholding
exemptions claimed" means the number of withholding exemptions
claimed in a withholding exemption certificate in effect under
section 3402(f), or in effect under the corresponding section of
prior law, except that if no such certificate is in effect, the
number of withholding exemptions claimed shall be considered to be
zero.
(f) Tips
For purposes of subsection (a), the term "wages" includes tips
received by an employee in the course of his employment. Such wages
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.
(g) Crew leader rules to apply
Rules similar to the rules of section 3121(o) shall apply for
purposes of this chapter.