Page:United States Statutes at Large Volume 94 Part 3.djvu/853

 PUBLIC LAW 96-601—DEC. 24, 1980

94 STAT. 3497

"(B) shall specify the amount to be deducted and withheld from each full payment, and "(C) shall take effect— "(i) in the case of sick pay, with respect to payments made more than 7 days after the date on which such request is furnished to the payor, or (ii) in the case of an annuity, at such time (after the date on which such request is furnished to the payor) as the Secretary shall by regulations prescribe. Such a request may be changed or terminated by furnishing to the person making the payments a written statement of change or termination which shall take effect in the same manner as provided in subparagraph (C). At the election of the payor, any such request (or statement of change or revocation) may take effect earlier than as provided in subparagraph (C). "(5) SPECIAL RULE FOR SICK PAY PAID PURSUANT TO CERTAIN

COLLECTIVE-BARGAINING AGREEMENTS.—In the case of any sick pay paid pursuant to a collective-bargaining agreement between employee representatives and one or more employers which contains a provision specifying that this paragraph is to apply to sick pay paid pursuant to such agreement and contains a provision for determining the amount to be deducted and withheld from each payment of such sick pay— "(A) the requirement of paragraph (1)(C) that a request for withholding be in effect shall not apply, and "(B) except as provided in subsection (n), the amounts to be deducted and withheld under this chapter shall be determined in accordance with such agreement. The preceding sentence shall not apply with respect to sick pay paid pursuant to any agreement to any individual unless the social security number of such individual is furnished to the payor and the payor is furnished with such information as is necessary to determine whether the payment is pursuant to the agreement and to determine the amount to be deducted and withheld.". (c) DEFINITION OF SICK PAY.—Paragraph (2) of section 3402(o) 26 USC 3402. (relating to definitions) is amended by adding at the end thereof the following new subparagraph: "(C) SICK PAY.—For purposes of this subsection, the term 'sick pav' means any amount which— ' (i) is paid to an employee pursuant to a plan to which the employer is a party, and "(ii) constitutes remuneration or a payment in lieu of remuneration for any period during which the employee is temporarily absent from work on account of sickness or personal injuries.". (d) TECHNICAL AMENDMENT.—Subparagraph (B) of section 342(o)(2) (defining annuity) is amended by striking out ", but only to the extent that the amount is includible in the gross income of such individual". (e) REPORTING REQUIREMENTS.—Section 6051 (relating to receipts 26 USC 6051. for employees) is amended by adding at the end thereof the following new subsection: "(f) STATEMENTS REQUIRED IN CASE OF SICK PAY PAID BY THIRD PARTIES.— "(1) STATEMENTS REQUIRED FROM PAYOR.—

"(A) IN GENERAL.—If, during any calendar year, any person makes a payment of third-party sick pay to an

�