PUBLIC LAW 104-191—AUG. 21, 1996
110 STAT. 2049
"(6) DEFINITIONS. —For purposes of this subsection, the
terms 'eHgible individual' and 'medical savings account' have
the respective meanings given to such terms by section 220.
"(7) CROSS REFERENCE.—
'^or penalty on failure by employer to make comparable contributions to the medical savings accounts of comparable employ-
ees, see section 4980E..
(2) EXCLUSION FROM EMPLOYMENT TAXES.—
(A) RAILROAD RETIREMENT TAX. —Subsection (e) of section 3231 is amended by adding at the end the following
new paragraph:
" (10) MEDICAL 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(b).".
(B) UNEMPLOYMENT TAX.— Subsection (b) of section
3306 is amended by striking "or" at the end of paragraph
(15), by striking the period at the end of paragraph (16)
and inserting "; or", and by inserting after paragraph (16)
the following new paragraph:
"(17) 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).".
(C) WITHHOLDING TAX.— Subsection (a) of section 3401
is amended by striking "or" at the end of paragraph (19),
by striking the period at the end of paragraph (20) and
inserting "; or", and by inserting after paragraph (20) the
following new paragraph:
"(21) 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)."
(3) EMPLOYER CONTRIBUTIONS REQUIRED TO BE SHOWN ON
w-2. —Subsection (a) of section 6051 is amended by striking
"and" at the end of paragraph (9), by striking the period at
the end of paragraph (10) and inserting ", and", and by inserting
after paragraph (10) the following new paragraph:
"(11) the amount contributed to any medical savings
/ account (as defined in section 220(d)) of such employee or
such employee's spouse.".
(4) PENALTY FOR FAILURE OF EMPLOYER TO MAKE COM-
PARABLE MSA CONTRIBUTIONS. —
(A) IN GENERAL. —Chapter 43 is amended by adding
after section 4980D the following new section:
"SEC. 4980E. FAILURE OF EMPLOYER TO MAKE COMPARABLE
MEDICAL SAVINGS ACCOUNT CONTRIBUTIONS.
"(a) GENERAL RULE. — In the case of an employer who makes
a contribution to the medical savings account of any employee
with respect to coverage under a high deductible health plan of
the employer during a calendar year, there is hereby imposed
a tax on the failure of such employer to meet the requirements
of subsection (d) for such calendar year.
"(b) AMOUNT OF TAX.— The amount of the tax imposed by
subsection (a) on any failure for any calendar year is the amount
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