Requirement
The tax imposed by section 3101 shall be collected by the employer of the taxpayer, by deducting the amount of the tax from the wages as and when paid. An employer who in any calendar year pays to an employee cash remuneration to which paragraph (7)(B) of section 3121(a) is applicable may deduct an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than the applicable dollar threshold (as defined in section 3121(x)) for such year; and an employer who in any calendar year pays to an employee cash remuneration to which paragraph (7)(C) or (10) of section 3121(a) is applicable may deduct an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than $100; and an employer who in any calendar year pays to an employee cash remuneration to which paragraph (8)(B) of section 3121(a) is applicable may deduct an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than $150; and an employer 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.
Indemnification of employer
Every employer required so to deduct the tax shall be liable for the payment of such tax, and shall be indemnified against the claims and demands of any person for the amount of any such payment made by such employer.
Special rule for tips
Special rule for certain taxable group-term life insurance benefits
In general
Benefits to which subsection applies
Special rule for certain transferred Federal employees
Special rules for additional tax
In general
In the case of any tax imposed by section 3101(b)(2), subsection (a) shall only apply to the extent to which the taxpayer receives wages from the employer in excess of $200,000, and the employer may disregard the amount of wages received by such taxpayer’s spouse.
Collection of amounts not withheld
To the extent that the amount of any tax imposed by section 3101(b)(2) is not collected by the employer, such tax shall be paid by the employee.
Tax paid by recipient
If an employer, in violation of this chapter, fails to deduct and withhold the tax imposed by section 3101(b)(2) and thereafter the tax is paid by the employee, the tax so required to be deducted and withheld shall not be collected from the employer, but this paragraph shall in no case relieve the employer from liability for any penalties or additions to tax otherwise applicable in respect of such failure to deduct and withhold.
Aug. 16, 1954, ch. 73668A Stat. 415Sept. 1, 1954, ch. 120668 Stat. 1093Aug. 1, 1956, ch. 83670 Stat. 841Pub. L. 89–97, title III, § 313(c)(1)79 Stat. 382Pub. L. 94–455, title XIX, § 1906(b)(13)(A)90 Stat. 1834Pub. L. 95–216, title III, § 355(a)91 Stat. 1555Pub. L. 101–508, title V, § 5124(a)104 Stat. 1388–284Pub. L. 103–296, title III, § 319(a)(3)108 Stat. 1534Pub. L. 103–387, § 2(a)(1)(D)108 Stat. 4072Pub. L. 108–203, title IV, § 424(b)118 Stat. 536Pub. L. 111–148, title IX, § 9015(a)(2)124 Stat. 871(, ; , title II, § 205A, ; , title II, § 201(h)(3), ; , (2), , , 383; , , ; , (b), , ; , , ; , , ; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 111–1482010—Subsec. (f). added subsec. (f).
Pub. L. 108–2032004—Subsec. (a). struck out “and the employee has not performed agricultural labor for the employer on 20 days or more in the calendar year for cash remuneration computed on a time basis” after “less than $150”.
Pub. L. 103–3871994—Subsec. (a). in second sentence substituted “An employer who in any calendar year” for “An employer who in any calendar quarter” and “remuneration paid to the employee by the employer in the calendar year is less than the applicable dollar threshold (as defined in section 3121(x)) for such year” for “remuneration paid to the employee by the employer in the calendar quarter is less than $50”.
Pub. L. 103–296Subsec. (e). added subsec. (e).
Pub. L. 101–5081990—Subsec. (d). added subsec. (d).
Pub. L. 95–216, § 355(a)1977—Subsec. (a). , substituted “cash remuneration to which paragraph (7)(B) of section 3121(a) is applicable” for “cash remuneration to which paragraph (7)(B) or (C) or (10) of section 3121(a) is applicable” and inserted “and an employer who in any calendar year pays to an employee cash remuneration to which paragraph (7)(C) or (10) of section 3121(a) is applicable may deduct an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than $100;”.
Pub. L. 95–216, § 355(b)(1)Subsec. (c)(1), (2). , substituted “year” for “quarter” wherever appearing.
Pub. L. 95–216, § 355(b)(2)(A)Subsec. (c)(3)(A). , substituted “in any calendar year” for “in any quarter of the calendar year”.
Pub. L. 95–216, § 355(b)(2)(B)Subsec. (c)(3)(B), (C). , substituted “year” for “quarter” wherever appearing.
Pub. L. 94–4551976—Subsec. (c)(3). struck out “or his delegate” after “Secretary”.
Pub. L. 89–97, § 313(c)(2)1965—Subsec. (a). , inserted provisions at end of second sentence allowing a deduction from any wages of an employee of an amount equivalent to the tax on tips when an employer is furnished with a written statement of tips received by an employee.
Pub. L. 89–97, § 313(c)(1)Subsec. (c). , added subsec. (c).
1956—Subsec. (a). Act , substituted “$150 and the employee has not performed agricultural labor for the employer on 20 days or more in the calendar year for cash remuneration computed on a time basis” for “$100”.
1954—Subsec. (a). Act , inserted last sentence permitting in certain instances an employer to deduct employee tax even though payment to employee is less than $50 for calendar quarter or $100 for calendar year.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–148section 9015(c) of Pub. L. 111–148section 164 of this titleAmendment by applicable with respect to remuneration received, and taxable years beginning, after , see , set out as a note under .
Effective Date of 1994 Amendments
Pub. L. 103–387, § 2(a)(3)108 Stat. 4072
In general .—
Excluded employment .—
Pub. L. 103–296section 319(c) of Pub. L. 103–296section 1402 of this titleAmendment by applicable with respect to service performed after calendar quarter following calendar quarter in which , occurs, see , set out as a note under .
Effective Date of 1990 Amendment
Pub. L. 101–508, title V, § 5124(c)104 Stat. 1388–285
Effective Date of 1977 Amendment
Pub. L. 95–216, title III, § 355(c)91 Stat. 1555
Effective Date of 1965 Amendment
Pub. L. 89–97section 313(f) of Pub. L. 89–97section 6053 of this titleAmendment by applicable only with respect to tips received by employees after 1965, see , set out as an Effective Date note under .
No Loss of Social Security Coverage for 1994; Continuation of W–2 Filing Requirement
Pub. L. 103–387, § 2(a)(4)108 Stat. 4072