Page:United States Statutes at Large Volume 95.djvu/1688

 95 STAT. 1662

PUBLIC LAW 97-123—DEC. 29, 1981 EXTENSION OF COVERAGE TO FIRST SIX MONTHS OF SICK PAY

42 USC 409.

SEC. 3. (a) a a u s e (2) of section 209(b) of the Social Security Act is amended by inserting immediatelv after "sickness or accident disability" the following: "(but, in the case of payments made to an employee or any of his dependents, this clause shall exclude from the term ^vages' only payments which are received under a workmen's compensation lawr. (b)(1) Subparagraph (B) of section 3121(a)(2) of the Internal Revenue 26 USC 3121. Code of 1954 (defuung wages for purposes of the Federal Insurance 26 USC 3126. Contributions Act) is amended to read as follows: "(B) sickness or accident disability (but, in the case of p a r e n t s made to an employee or any of his dependents, this subparagraph shall exclude from the term 'wages' only payments wmch are received under a workmen's compensation law), or". (2) Section 3121(a) of such Code is further amended by adding at the end thereof (after and below paragraph (18)) the following new sentence: "Except as otherwise provided in regulations prescribed by the Secretary, any third party which makes a payment included in wages solely by reason of the parenthetical matter contained in subparagraph (B) of paragraph (2) shall be treated for purposes of this chapter 26 USC 3201 et and chaptor 22 as the employer with respect to such wa^es." SVsc S231 ^^^ Subsection (e) of section 3231 of such Code (defining compensa26 USC 3233 ^on for purposes of the Railroad Retirement Tax Act) is amended by adding at the end thereof the following new paragraph: "(4)(A) For purposes of applying sections 3201(b) and 3221(b) (and so much of section 3211(a) as relates to the rates of the taxes imposed by sections 3101 and 3111), in the case of payments made to an employee or any of his dependents on account of sickness or accident disability, clause (i) of the second sentence of paragraph (1) shall exclude from the term 'compensation' only— "(i) payments which are received under a workmen's compensation law, and "(ii) benefits received under the Railroad Retirement Act 45use23it. of 1974. "(B) Notwithstanding any other provision of law, for purposes of the sections specified in subparagraph (A), the term compensation' shall include benefits paid under section 2(a) of the 45 USC 352. Railroad Unemployment Insurance Act for days of sickness, except to the extent that such sickness (as determined in accordance with standards prescribed by the Railroad Retirement Board) is the result of on-the-job injury. "(C) Under regulations prescribed by the Secretary, subparagraphs (A) and (B) shall not apply to payments made after the expiration of a 6-month period comparable to the 6-month period described in section 3121(a)(4). "(D) Except as otherwise provided in regulations prescribed by the Secretary, any third party which makes a payment included in compensation solely by reason of subparagraph (A) or (B) shall be treated for purposes of this chapter as the employer with respect to such compensation." 26 USC 3121 (d)(l) The regulations prescribed under the last sentence of section o^frcr. 0101 3121(a) of tho Internal Revenue Code of 1954, and the regulations Supm prescribed under subparagraph (D) of section 3231(e)(4) of such Code, shall provide procedures under which, if (with respect to any employee) the third party promptly—

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