Page:United States Statutes at Large Volume 100 Part 1.djvu/351

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 315

"(B) would not be employment (as so defined) without the application of such paragraphs." (2) CONFORMING AMENDMENTS.—

(A)(i) Section 3125 (relating to returns in the case of governmental employees in Guam, American Samoa, and the District of Columbia) is amended by redesignated subsections (a), (b), and (c) as subsections (b), (c), and (d), respectively, and by inserting before subsection (b) (as so redesignated) the following new subsection: "(a) STATES.—Except as otherwise provided in this section, in the case of the taxes imposed by sections 3101(b) and 3111(b) with respect to service performed in the employ of a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby), the return and payment of such taxes may be made by the head of the agency or instrumentality having the control of such service, or by such agents as such head may designate. The person making such return may, for convenience of administration, make payments of the tax imposed under section 3111 with respect to the service of such individuals without regard to the contribution and benefit base limitation in section 3121(a)(1)." (ii) The section heading for such section 3125 is amended by inserting "STATES," before "GUAM". (iii) The item relating to section 3125 in the table of sections for subchapter C of chaper 21 is amended by inserting "States," before "Guam". (B) Subsection (b) of section 1402 is amended by striking out "medicare qualified Federal employment (as defined in section 3121(u)(2))" and inserting in lieu thereof "medicare qualified government employment (as defined in section 3121(u)(3))". (C) Section 3122 (relating to Federal service) is amended by striking out "including service which is medicare qualified Federal employment (as defined in section 3121(u)(2))" and inserting in lieu thereof "including such service which is medicare qualified government employment (as defined in section 3121(u)(3))". (D) Subsection (a) of section 6205 (relating to special rules applicable to certain employment tsixes) is amended by adding at the end thereof the following new paragraph:

26 USC 3125. Guam, American Samoa. District of Columbia. 26 USC 3101, 3111.

26 USC 1402. 26 USC 3121. 26 USC 3122.

26 USC 6205.

"(5) STATES AND POLITICAL SUBDIVISIONS AS EMPLOYER.—For

purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 shall be 26 USC 3125. deemed a separate employer.' (E)(i) Section 6413(a) (relating to adjustment of certain 26 USC 6413. employment taxes) is amended by adding at the end thereof the following new paragraph: "(5) STATES AND POLITICAL SUBDIVISIONS AS EMPLOYER.—For

purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by

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