§ 3202. Deduction of tax from compensation

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 431 · 68A Stat. 431

   Enacted · 26 U.S.C. § 3202

   Aug. 16, 1954, ch. 736, 68A Stat. 431

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 431

2. 1954

   Public Law not identified

   Substituted · 26 U.S.C. § 3202(a)

   Subsec. (a). Act Aug. 31, 1954, substituted “$350” for “$300” wherever appearing

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Subsec. (a). Act Aug. 31, 1954, substituted “$350” for “$300” wherever appearing.

3. 1959

   Pub. L. 86–28 · 73 Stat. 25

   1. Substituted · 26 U.S.C. § 3202(a)

      Pub. L. 86–28 substituted “after the month in which this provision was amended in 1959” for “after 1954” in two places

   2. Substituted · 26 U.S.C. § 3202(a)

      Pub. L. 86–28 substituted “$400” for “$350” in two places

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 86–28 substituted “after the month in which this provision was amended in 1959” for “after 1954” and for “after December 31, 1954” in five places, and “$400” for “$350” in two places.

4. 1963

   Pub. L. 88–133 title II § 202 · 77 Stat. 219

   Changed · 26 U.S.C. § 3202(a)

   Pub. L. 88–133 limited existing taxable compensation base of $400 to any calendar month before Nov. 1963 and increased such base to $450 for any calendar month after Oct. 1963

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 88–133 limited existing taxable compensation base of $400 to any calendar month before Nov. 1963 and increased such base to $450 for any calendar month after Oct. 1963.

   Enacted provision · exact public law section
   Sec. 202. Sections 3202 and 3221(a) of the Railroad Retirement Tax Act are each amended by inserting after “$400” wherever it 68A Stat. 431, 433; 73 Stat. 29. 26 USC 3202, 3221. appears the following: “for any calendar month before the calendar month next following the month in which this provision was amended in 1963, or $450 for any calendar month after the month in which this provision was so amended”.

5. 1965

   Pub. L. 89–212 · 79 Stat. 858

   1. Inserted · 26 U.S.C. § 3202(a)

      Pub. L. 89–212, §§ 2(a)(1), 4, inserted sentence permitting an employer who is furnished by an employee a written statement of tips pursuant to section 6053(a) to which par. (3) of section 3231(e) is applicable to deduct an amount equivalent to such tax with respect to such tips from any compensation of the employee 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

   2. Inserted · 26 U.S.C. § 3202(a)

      Pub. L. 89–212, §§ 2(a)(1), 4, inserted “and before the calendar month next following the calendar month in which this provision was amended in 1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121, whichever is greater, for any month after the month in which this provision was so amended” in two places

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 89–212, §§ 2(a)(1), 4, inserted sentence permitting an employer who is furnished by an employee a written statement of tips pursuant to section 6053(a) to which par. (3) of section 3231(e) is applicable to deduct an amount equivalent to such tax with respect to such tips from any compensation of the employee 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, and inserted “and before the calendar month next following the calendar month in which this provision was amended in 1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121, whichever is greater, for any month after the month in which this provision was so amended” in two places.

6. 1965

   Pub. L. 89–212 § 2(a)(2) · 79 Stat. 858

   Added · 26 U.S.C. § 3202(c)

   Pub. L. 89–212, § 2(a)(2), added subsec. (c)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 89–212, § 2(a)(2), added subsec. (c).

   Enacted provision · exact public law section
   (2) Such section 3202 is amended by adding at the end thereof the following new subsection: “(c) Special Rule for Tips.— “(1) In the case of tips which constitute compensation, 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 quarter) in which the tips were deemed paid, by deducting the amount of the tax from such compensation 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 3201, with respect to tips which are included in written statements furnished in any month to the employer pursuant to section 6053(a), exceeds the compensation 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 quarter) an amount of money equal co the amount of the excess. “(3) The Secretary or his delegate 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 quarter Ante, p. 384. of the calendar year, “(B) to determine the amount to be deducted upon each payment of compensation (exclusive of tips) during such quarter as if the tips so estimated constituted actual tips so reported, and “(C) to deduct upon any payment of compensation (other than tips, but including funds turned over by the employee to the employer pursuant to paragraph (2)) to such employee during such quarter (and within 30 days thereafter) such amount as may be necessary to adjust the amount actually deducted upon such compensation of the employee during the quarter to the amount required to be deducted in respect of tips included in written statements furnished to the employer during the quarter. Post, p, 861. “(4) If the tax imposed by section 3201 with respect to tips which constitute compensation exceeds the portion of such tax which can be collected by the employer from the compensation of the employee pursuant to paragraph (1) or paragraph (3), such excess shall be paid by the employee.”

7. 1966

   Pub. L. 89–700 title III § 301(iii) · 80 Stat. 1073

   1. Substituted · 26 U.S.C. § 3202(a)

      Pub. L. 89–700 substituted “after September 30, 1965” for “after the month in which this provision was amended in 1959” in two places

   2. Substituted · 26 U.S.C. § 3202(a)

      Pub. L. 89–700 substituted “(i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954, whichever is greater, for any month after September 30, 1965” for “$400 for any calendar month before the calendar month next following the month in which this provision was amended in 1963, or $450 for any calendar month after the month in which this provision was so amended and before the calendar month next following the calendar month in which this provision was amended in 1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954, whichever is greater, for any month after the month in which this provision was so amended” in two places

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 89–700 substituted “after September 30, 1965” for “after the month in which this provision was amended in 1959” in six places, and “(i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954, whichever is greater, for any month after September 30, 1965” for “$400 for any calendar month before the calendar month next following the month in which this provision was amended in 1963, or $450 for any calendar month after the month in which this provision was so amended and before the calendar month next following the calendar month in which this provision was amended in 1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954, whichever is greater, for any month after the month in which this provision was so amended” in two places.

   Enacted provision · exact public law section
   (iii) by striking out the language “after the month in which this provision was amended in 1959”, wherever such language appears in such sections 3202 and 3221, and inserting in each instance in lieu thereof “after September 30, 1965”;

8. 1973

   Railroad Retirement Amendments of 1973

   Pub. L. 93–69 title I § 102(b) · 87 Stat. 162

   1. Substituted · 26 U.S.C. § 3202(a)

      Pub. L. 93–69, in second sentence reading “If an employee . . .”, substituted “1973” for “1965” wherever appearing

   2. Struck · 26 U.S.C. § 3202(a)

      Pub. L. 93–69, in second sentence reading “If an employee . . .”, struck out “(i) $450, or (ii)” before “an amount equal to” in two places

   3. Struck · 26 U.S.C. § 3202(a)

      Pub. L. 93–69, in second sentence reading “If an employee . . .”, struck out “, whichever is greater,” after “Internal Revenue Code of 1954” in two places

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 93–69, in second sentence reading “If an employee . . .”, substituted “1973” for “1965” wherever appearing, struck out “(i) $450, or (ii)” before “an amount equal to” in two places, and struck out “, whichever is greater,” after “Internal Revenue Code of 1954” in two places.

   Enacted provision · exact public law section
   (b) Section 3202(a) of such Code is amended— (1) by striking out “1965” wherever it appears in the second sentence thereof and inserting in lieu thereof “1973”; (2) by striking out “(i) $450, or (ii)” wherever it appears in the second sentence thereof; and (3) by striking out “, whichever is greater,” wherever it appears in the second sentence thereof.

9. 1976

   Pub. L. 94–455 § 1903(a)(7)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 3202(a)

   Pub. L. 94–455, § 1903(a)(7)(A), struck out provisions relating to the September 30, 1973, qualification on the applicability of provisions of this subsection and “of the Internal Revenue Code of 1954” before “for any month” wherever appearing

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 94–455, § 1903(a)(7)(A), struck out provisions relating to the September 30, 1973, qualification on the applicability of provisions of this subsection and “of the Internal Revenue Code of 1954” before “for any month” wherever appearing.

   Enacted provision · exact public law section
   (A) The second sentence of section 3202(a) (relating to 26 USC 3202. reduction of tax by railroad employer) is amended— (i) by striking out “after September 30, 1973,” each place it appears; (ii) by striking out “after September 30, 1973 and the aggregate” and inserting in lieu thereof “and the aggregate” (iii) by striking out “of the Internal Revenue Code of 1954” each place it appears; and (iv) by inserting a comma immediately after “for any month” each place it appears.

10. 1976

    Pub. L. 94–455 § 1903(a)(7)(B) · 90 Stat. 1520

    Struck · 26 U.S.C. § 3202(b)

    Pub. L. 94–455, § 1903(a)(7)(B), struck out “made” after “to deduct the tax shall be”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 94–455, § 1903(a)(7)(B), struck out “made” after “to deduct the tax shall be”.

    Enacted provision · exact public law section
    (B) Section 3202(b) (relating to indemnification of employer) is amended by striking out “made”.

11. 1976

    Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 3202(c)(3)

    Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

    Enacted provision · exact public law section
    (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

12. 1983

    Railroad Retirement Solvency Act of 1983

    Pub. L. 98–76 § 225(a)(2) · 97 Stat. 411

    1. Substituted · 26 U.S.C. § 3202(a)

       Pub. L. 98–76, § 225(a)(2), (c)(1)(A), (2), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”

    2. Substituted · 26 U.S.C. § 3202(a)

       Pub. L. 98–76, § 225(a)(2), (c)(1)(A), (2), substituted “the amount of the taxes” for “the amount of the tax”

    3. Substituted · 26 U.S.C. § 3202(a)

       Pub. L. 98–76, § 225(a)(2), (c)(1)(A), (2), substituted “such taxes” for “such tax”

    4. Struck · 26 U.S.C. § 3202(a)

       Pub. L. 98–76, § 225(a)(2), (c)(1)(A), (2), struck out provisions that if an employee was paid compensation by more than one employer for services rendered during any calendar month and the aggregate of such compensation was in excess of an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 for any month, the tax to be deducted by each employer other than a subordinate unit of a national railway-labor-organization employer from the compensation paid by him to the employee with respect to such month would be that proportion of the tax with respect to such compensation paid by all such employers which the compensation paid by him to the employee for services rendered during such month bears to the total compensation paid by all such employers to such employee for services rendered during such month; and that in the event that the compensation so paid by such employers to the employee for services rendered during such month was less than an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 for any month, each subordinate unit of a national railway-labor-organization employer would deduct such proportion of any additional tax as the compensation paid by such employer to such employee for services rendered during such month bears to the total compensation paid by all such employers to such employee for services rendered during such month

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 98–76, § 225(a)(2), (c)(1)(A), (2), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”, substituted “the amount of the taxes” for “the amount of the tax”, and “such taxes” for “such tax”, and struck out provisions that if an employee was paid compensation by more than one employer for services rendered during any calendar month and the aggregate of such compensation was in excess of an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 for any month, the tax to be deducted by each employer other than a subordinate unit of a national railway-labor-organization employer from the compensation paid by him to the employee with respect to such month would be that proportion of the tax with respect to such compensation paid by all such employers which the compensation paid by him to the employee for services rendered during such month bears to the total compensation paid by all such employers to such employee for services rendered during such month; and that in the event that the compensation so paid by such employers to the employee for services rendered during such month was less than an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 for any month, each subordinate unit of a national railway-labor-organization employer would deduct such proportion of any additional tax as the compensation paid by such employer to such employee for services rendered during such month bears to the total compensation paid by all such employers to such employee for services rendered during such month.

    Enacted provision · exact public law section
    (2) Subsection (a) of section 3202 of such Code is amended by 26 USC 3202. striking out the second sentence.

13. 1983

    Railroad Retirement Solvency Act of 1983

    Pub. L. 98–76 § 225(c)(1)(B) · 97 Stat. 411

    1. Substituted · 26 U.S.C. § 3202(c)(2)

       Pub. L. 98–76, § 225(c)(1)(B), (3), (5), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”

    2. Substituted · 26 U.S.C. § 3202(c)(2)

       Pub. L. 98–76, § 225(c)(1)(B), (3), (5), substituted “the taxes under paragraph (1)” for “the tax under paragraph (1)”

    3. Substituted · 26 U.S.C. § 3202(c)(2)

       Pub. L. 98–76, § 225(c)(1)(B), (3), (5), substituted “exceed” for “exceeds”

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 98–76, § 225(c)(1)(B), (3), (5), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”, “the taxes under paragraph (1)” for “the tax under paragraph (1)”, and “exceed” for “exceeds”.

    Enacted provision · exact public law section
    (B) Paragraphs (2) and (4) of section 3202(c), and

14. 1983

    Railroad Retirement Solvency Act of 1983

    Pub. L. 98–76 § 225(c)(1)(B) · 97 Stat. 411

    1. Substituted · 26 U.S.C. § 3202(c)(4)

       Pub. L. 98–76, § 225(c)(1)(B), (4), (5), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”

    2. Substituted · 26 U.S.C. § 3202(c)(4)

       Pub. L. 98–76, § 225(c)(1)(B), (4), (5), substituted “such taxes” for “such tax”

    3. Substituted · 26 U.S.C. § 3202(c)(4)

       Pub. L. 98–76, § 225(c)(1)(B), (4), (5), substituted “exceed” for “exceeds”

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 98–76, § 225(c)(1)(B), (4), (5), substituted “taxes imposed by section 3201” for “tax imposed by section 3201”, “such taxes” for “such tax”, and “exceed” for “exceeds”.

    Enacted provision · exact public law section
    (B) Paragraphs (2) and (4) of section 3202(c), and

15. 1990

    Omnibus Budget Reconciliation Act of 1990

    Pub. L. 101–508 title V § 5124(b) · 104 Stat. 1388

    Added · 26 U.S.C. § 3202(d)

    Pub. L. 101–508 added subsec. (d)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 101–508 added subsec. (d).

    Enacted provision · exact public law section
    (b) Railroad Retirement Taxes.— Section 3202 of such Code (relating to deduction of tax from compensation) is amended by adding at the end thereof the following new subsection: “(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 compensation which consists of payments for group-term life insurance to which this subsection applies, and “(ii) the amount of the tax imposed by section 3201 on such payments, and “(C) the tax imposed by section 3201 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 compensation, and “(B) such payment is for coverage for periods during which an employment relationship no longer exists between the employee and the employer.”

    Effective date note
    Amendment by Pub. L. 101–508 applicable to coverage provided after Dec. 31, 1990, see section 5124(c) of Pub. L. 101–508, set out as a note under section 3102 of this title.

21 of 27 references resolved to an enrolled provision · 5 partial · 1 unresolved