79
STAT.
]
PUBLIC LAW 89-97-JULY 30, 1965
"(B) to detennine the amount to be deducted trpon each payment of wages (exclusive of tips) during such quarter as if the tips so estimated constituted the actual tips so reported, and "(G) 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 quarter (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 quarter to the amount required to be deducted in respect of tips included in written statements furnished to the employer during the quarter. "(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." (2) The second sentence of section 3102(a) of such Code is amended by inserting before the period at the end thereof the following: "; and an emploj^er who is furnished by an employee a written statement of tips (received in a calendar month) pursuant to section 6053(a) to which paragraph (12)(B) of section 3121(a) is applicable may deduct an amount equivalent to such tax with respect to such tips from any wages of the employee (exclusive of tips) 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". (3) Section 3121(a) of such Code (relating to definition of wages under the Federal Insurance Contributions Actj is amended by striking out "or" at the end of paragraph (10), by striking out the period at the end of paragraph (11) and inserting in lieu thereof "; or ", and by adding after paragraph (11) the following new paragraph: "(12)(A) tips paid in any medium other than cash; "(B) 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." (4) Section 3121 of such Code is further amended by adding at the end thereof the following new subsection: "(q) TIPS iNCiiliOED FOR EMPLOYEE TAXES.—For purposes of this chapter other than for purposes of the taxes imposed by section 3111, tips received by an employee in the course of his employment shall be considered remuneration for employment. Such remuneration 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) or (if no statement including such tips is so furnished) at the time received." (d)(1) Section 3401 of such Code (relating to definitions for purposes of collecting income tax at source on wages) is amended by adding^at the end thereof the following new subsection: "(f) TIPS.—For purposes of subsection (a), the term 'wages' includes tips received by an employee in the course of his employment. Such wages 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) or (if no statement including sudi tips is so furnished) at the time received."
383
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68^l4t!*io93.^^' 26 USC 3102. Post, p. 384. 26 USC 3121.
^°^^' P- 396.
26^scr34(u^* "Wages."
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