U.S Code last checked for updates: Nov 22, 2024
§ 3102.
Deduction of tax from wages
(a)
Requirement
(b)
Indemnification of 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.
(f)
Special rules for additional tax
(1)
In general
(2)
Collection of amounts not withheld
(3)
Tax paid by recipient
(Aug. 16, 1954, ch. 736, 68A Stat. 415; Sept. 1, 1954, ch. 1206, title II, § 205A, 68 Stat. 1093; Aug. 1, 1956, ch. 836, title II, § 201(h)(3), 70 Stat. 841; Pub. L. 89–97, title III, § 313(c)(1), (2), July 30, 1965, 79 Stat. 382, 383; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–216, title III, § 355(a), (b), Dec. 20, 1977, 91 Stat. 1555; Pub. L. 101–508, title V, § 5124(a), Nov. 5, 1990, 104 Stat. 1388–284; Pub. L. 103–296, title III, § 319(a)(3), Aug. 15, 1994, 108 Stat. 1534; Pub. L. 103–387, § 2(a)(1)(D), Oct. 22, 1994, 108 Stat. 4072; Pub. L. 108–203, title IV, § 424(b), Mar. 2, 2004, 118 Stat. 536; Pub. L. 111–148, title IX, § 9015(a)(2), Mar. 23, 2010, 124 Stat. 871.)
cite as: 26 USC 3102