53 STAT.] 76TH CONG., 1ST SESS.-CH. 666-AUG. 10, 1939 "(b) PENALTY FOR FAILURE TO FURNISn.- Any employer who wil- fully fails to furnish a statement to an employee in the manner, at the time, and showing the information, required under subsection (a), shall for each such failure be subject to a civil penalty of not more than $5." SEC. 604. Section 1410 of the Internal Revenue Code is amended to read as follows: "SEC. 1410. RATE OF TAX. "In addition to other taxes, every employer shall pay an excise tax, with respect to having individuals in his employ, equal to the following percentages of the wages (as defined in section 1426 (a)) paid by him after December 31, 1936, with respect to employment (as defined in section 1426 (b)) after such date: "(1) With respect to wages paid during the calendar years 1939, 1940, 1941, and 1942, the rate shall be 1 per centum. "(2) With respect to wages paid during the calendar years 1943, 1944, and 1945, the rate shall be 2 per centum. "(3) With respect to wages paid during the calendar years 1946, 1947, and 1948, the rate shall be 2Y2 per centum. "(4) With respect to wages paid after December 31, 1948, the rate shall be 3 per centum." SEC. 605. Section 1411 of the Internal Revenue Code is amended to read as follows: "SEC. 1411 . ADJUSTMENT OF TAX. "If more or less than the correct amount of tax imposed by section 1410 is paid with respect to any payment of remuneration, proper adjustments with respect to the tax shall be made, without interest, in such manner and at such times as may be prescribed by regula- tions made under this subchapter." SEC. 606. Effective January 1, 1940, section 1426 of the Internal Revenue Code is amended to read as follows: "SEC. 1426. DEFINITIONS. "When used in this subchapter- "(a) WAGES. -T he term 'wages' means all remuneration for em- ployment, including the cash value of all remuneration paid in any medium other than cash- except that such term shall not include- "(1) That part of the remuneration which, after remunera- tion equal to $3,000 has been paid to an individual by an employer with respect to employment during any calendar year, is paid to such individual by such employer with respect to employment during such calendar year; "(2) The amount of any payment made to, or on behalf of, an employee under a plan or system established by an employer which makes provision for his employees generally or for a class or classes of his employees (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment), on account of (A) retirement, or (B) sickness or accident disability, or (C) medical and hospitalization expenses in connection with sickness or accident disability, or (D) death, provided the employee (i) has not the option to receive, instead of provision for such death benefit, any part of such payment or, if such death benefit is insured, any part of the premiums (or contributions to premiums) paid by his employer, and (ii) has not the right, under the provisions of the plan or system or policy of insurance providing for such death benefit, to assign such benefit, or to receive a cash consideration in lieu of such benefit either upon his withdrawal from the plan or system providing for such benefit or upon termination of such plan or 1383 Penalty for failure to furnish. Tax on employers. Ante, p. 175. 1. R. C.§1410. Rate of tax. Ante, p. 176. I.R. C. 1411. Adjustment of tax. Ante, p. 177 . I.R.C.i1426. Definitions. " Wages."
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