382
PUBLIC LAW 89-97-JULY 30, 1965
[79 STAT.
<X)VERAGE OF TIPS
yg64 Stat.^492; 42 USC 409.
Post, p. 384.
26ljs? 45\"'
26 USC 3102.
jgEo. 313, (ft)(1) SectioH 209 of the Social Security Act is amended by striking out "or" at the end of subsection (j), by striking out the period at the end of subsection (k) and inserting in lieu thereof "; or", and by adding immediately after subsection (k) the following new subsection: " Q)(1) Tips paid in any medium other than cash; "(2) Cash tips received by 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) Section 209 of such Act is-further amended by adding at the end thereof the following new paragraph: "For purposes of this title, tips received by an employee in the course of his employment snail be considered remuneration for employment. Such remuneratic«i 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) of the Internal Revenue Code of 1954 or (if no statement including such tips is so furnished) at the time received." (b) Section 451 of the Internal Revenue Code of 1954 (relating to general rule for taxable year of inclusion) is amended by adding at the end thereof the following new subsection: "(c) S P ^ I A L RULE FOR EMPLOYEE T I P S. — For purposes of subsection (a), tips included in a written statement furnished an employer by an employee pursuant to section 6053(a) shall be deemed to be received at the time the written statement including such tips is furnished to the employer." (c)(1) Section 3102 of such Code (relating to deduction of tax from wages) is amended by adding at the end thereof the following new subsection: "(c)
Post, p. 39 5.
SPECIAL RULE FOR T I P S. —
"(1) I n 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 quarter) 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 quarter) an amount of money equal to 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 of the calendar year,
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