Page:United States Statutes at Large Volume 98 Part 1.djvu/932

 98 STAT. 884

PUBLIC LAW 98-369—JULY 18, 1984 House of Representatives and the Committee on Finance of the Senate by no later than April 1, 1985. (c) CLARIFICATION THAT FRINGE BENEFITS NOT COVERED BY STATUTORY EXCLUSION INCLUDED IN GROSS INCOME.—Paragraph (1) of

26 USC 61.

section 61(a) (defining gross income) is amended by striking out "commissions, and similar items" and inserting in lieu thereof "commissions, fringe benefits, and similar items". (d) CONFORMING AMENDMENTS TO EMPLOYMENT TAXES.— (1) SOCIAL SECURITY TAXES.—

26 USC 3121. 97 Stat. 126.

Ante, p. 877. 42 USC 409. 97 Stat. 127.

26 USC 3231.

26 USC 3306. 97 Stat. 860.

(A) Subsection (a) of section 3121 (defining wages) is amended— (i) by striking out "all remuneration paid in any medium" in the material preceding paragraph (1) and inserting in lieu thereof "all remuneration (including benefits) paid in any medium", and (ii) by striking out "or" at the end of paragraph (18), by striking out the period at the end of paragraph (19) ,. and inserting in lieu thereof "; or", and by inserting after paragraph (19) the following new paragraph: "(20) any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income Under section 117 or 132." (B) Section 209 of the Social Security Act is amended— (j) by striking out "all remuneration paid in any medium" in the material preceding subsection (a) and inserting in lieu thereof "all remuneration (including benefits) paid in any medium", and (ii) by striking out "or" at the end of subsection (q), by striking out the period at the end of subsection (r) and inserting in lieu thereof "; or", and by inserting after subsection (r) the following new subsection: "(s) Any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income under section 117 or 132 of the Internal Revenue Code of 1954." (2) RAILROAD RETIREMENT TAX.—Subsection (e) of section 3231 (defining compensation) is amended by adding at the end thereof the following new paragraph: "(5) The term 'compensation' shall not include any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income under section 117 or 132." (3) UNEMPLOYMENT TAX.—Subsection (b) of section 3306 (defining wages) is amended— (A) by striking out "all remuneration paid in any medium" in the material preceding paragraph (1) and inserting in lieu thereof "all remuneration (including benefits) paid in any medium", and (B) by striking out "or" at the end of paragraph (14), by striking out the period at the end of paragraph (15) and inserting in lieu thereof "; or", and by inserting after paragraph (15) the following new paragraph: "(16) any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that

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