Page:United States Statutes at Large Volume 79.djvu/424

 384 69 Stat. 616; 7 5 Stat. 625; 78 Stat. 36, 52. 26 USC 3401.

68A Stat. 457; 69 Stat. 605. 26 USC 3402.

Intra.

Ante, p. 382. Ante, p. 383. 68A Stat. 747. 26 USC 6 0 5 1.

26 USC 3121, 3401.

PUBLIC LAW 89-97-JULY 30, 1965

[79 STAT.

(2) Section 3401(a) of such Code (relating to definition of wa^es for purposes of collecting income tax at source) is amended by striking out ", or" at the end of paragraph (6) and inserting in lieuihereof or'" by striking out the period at the end of paragraph (12) and inserting in lieu thereof "; or", by striking out the period at the end of paragraph (15) and inserting in lieu thereof "; or", and)by adding after paragraph (15) the followmgnew paragraph: "(16)(A) as tips in any medium other than cash; " (B) as cash tips to 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." (3) Subsection (a) of section 3402 of such Code (relating to income tax collected at source) is amended by striking out "subsection (j) " and inserting in lieu thereof "subsections {]) and (k) ". (4) Section 3402(h)(3) of such Code (relating to income tax withholding on basis of average wages) is amended by inserting after "quarter" the first place it appears the following: "(and, in the case of tips referred to in subsection (k), within 30 days thereafter)". (5) Section 3402 of such Code is further amended by adding at the end thereof the following new subsection: " (k) TIPS.—In 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 the tax can be deducted and withheld by the employer, at or after the time such statement is so furnished and before the close of the calendar year in which such statement is furnished, from such wages of the employee (excluding tips, but including funds turned over by the employee to the employer for the purpose of such deduction and withholding) as are under the contr(M of the employer; 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 (16)(B) of section 3401(a) is applicable may deduct and withhold the tax with respect to such tips from any wages of the employee (excluding 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. Such tax shall not at any time be deducted and withheld in an amount which exceeds the aggregate of such wages and funds (including funds turned over under section 3102(c)(2)) minus any tax required by section 3102(a) to be collected from such wages and funds." (e)(1) Section 6051(a) of such Code (relating to receipts for employees) is amended by adding at the end thereof the following new sentence: " I n the case of tips received by an employee in the course of his employment, the amounts required to be shown by paragraphs (3) and (5) shall include only such tips as are included in statements furnished to the employer pursuant to section 6053(a)." (2)(A) Subpart C of part III of subchapter A of chapter 61 of such Code (relating to information regarding wages paid employees) is amended by adding at the end thereof the following new section: " (^) REPORTS BY EMPLOYEES.—Every employee who, in the course of his employment by an employer, receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) shall report all such tips in one or more written statements furnished to his employer on or before the 10th day following such month. Such
 * SEC. 6053. REPORTING OF TIPS.

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