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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