Page:United States Statutes at Large Volume 91.djvu/1570

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PUBLIC LAW 95-000—MMMM. DD, 1977

91 STAT. 1536

PUBLIC LAW 95-216—DEC. 20, 1977

26 USC 1402,

(b) Section 1402(a) of the Internal Revenue Code of 1954 (relating to definition of net earnings from self-employment) is amended— (1) by striking out "and" ait the end of paragraph (10); (2) by striking out the period at the end of paragraph (11) and inserting in lieu thereof "; and"; and (3) by inserting after paragraph (11) the following new paragraph: " (12) there shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments described in section 707(c) to that partner for 26 USC 707. services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.". Effective date. (c) The amendments made by this section shall apply with respect 42 USC 411 note. to taxable years beginning after December 31, 1977. EMPLOYEES OF MEMBERS OF RELATED GROUPS OF CORPORATIONS

26 USC 3121. 26 USC 3101-3126.

SEC. 314. (a) Section 3121 of the Internal Revenue Code of 1954 (definitions for purposes of the Federal Insurance Contributions Act) is amended by adding at the end thereof the following new subsection: " (s)

Post, p. 1555. Ante, p. 1511, Post, pp. 1537, 1540.

26 USC 3306.

CONCURRENT EMPLOYMENT BY Two OR MORE EMPLOYERS.—For

purposes of sections 3102, 3111, and 3121 (a)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.". (b) Section 3306 of such Code (relating to definitions in respect of unemployment tax) is amended by adding aJt the end thereof the following new subsection: " (p) CONCURRENT EMPLOYMENT BY Two OR MORE EMPLOYERS.—For

26 USC 3301, 3302.

Effective date. 26 USC 3121 note.

purposes of sections 3301, 3302, and 3306 (b)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.". (c) The amendments made by this section shall apply with respect to wages paid after December 31, 1978. TAX ON EMPLOYERS OF INDIVIDUALS W H O RECEIVE INCOME FROM TIPS

Supra.

SEC. 315. (a) Section 3121 of the Internal Revenue Code of 1954 (definitions for purposes of the Federal Insurance Contributions Act) is amended by adding at the end thereof (after the new subsection added by section 314(a) of this Act) the following new subsection: " (t) SPECIAL RULE FOR DETERMINING WAGES SUBJECT TO EMPLOYER TAX IN CASE OF CERTAIN EMPLOYERS WHOSE EMPLOYEES RECEIVE INCOME FROM TIPS.—If the wages paid by an employer with respect to

Post, p. 1555.

the employment during any month of an individual who (for services performed in connection with such employment) receives tips which constitute wages, and to which section 3102(a) applies, are less than the total amount which would be payable (with respect to such