PUBLIC LAW 89-212-SEPT. 29, 1965
Public Law 89-212 September 29, 1965 [H. R. 10874]
Railroad Retirement Act of 1937 and Railroad Retirement T a x Act, amendments.
AN ACT To amend the Railroad Retirement Act of 1937 and the Railroad Retirement Tax Act to eliminate certain provisions which reduce spouses' annuities, to provide coverage for tips, to increase the base on which railroad retirement benefits and taxes are computed, and to change the railroad retirement tax rates.
Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,
SPOUSES' A N N U I T I E S
1. Subsection (e) of section 2 of the Railroad Eetirement Act of 1937 (45 U.S.C. 228b (e)) is amended by changing the colon before the last proviso to a period and by striking out all that follows down through the period at the end of such subsection. SECTION
65 Stat. 683.
COVEllAGE OF T I P S
68A Stat. 4 3 1. 26 USC 3202.
Ante, p. 384. Post,
SEC. 2. (a)(1) Subsection (a) of section 3202 of the Internal Revenue Code of 1954 (relating to deduction of tax from compensation) is amended by adding at the end thereof the following new sentence: "An employer who is furnished by an employee a, written statement of tips (received in a calendar month) pursuant to section 6053(a) to which paragraph (3) of section 3231(e) is applicable may deduct an amount equivalent to such tax with respect to such tips from any compensation of the employee (exclusive of tips) under his control, even though at the time such statement is furnished the total amount of the tips included in statements furnished to the employer as having been received by the employee in such calendar month in the course of his employment by such employer is less than $20. (2) Such section 3202 is amended by adding at the end thereof the following new subsection: "(c)
Quarterly e s t i mates; deductions.
SPECIAL RULE FOR T I P S. —
"(1) In the case of tips which constitute compensation, subsection (a) shall be applicable only to such tips as are included in a written statement furnished to the employer pursuant to section 6053(a), and only to the extent that collection can be made by the employer,fat or after the time such statement is so furnished and before the close of the 10th day following the calendar month (or, if paragraph (3) applies, the 30th day following the quarter) in which the tips were deemed paid, by deducting the amount of the tax from such compensation of the employee (excluding tips, but including funds turned over by the employee to the employer pursuant to paragraph (2)) as are under control of the employer. "(2) If the tax imposed by section 3201, with respect to tips which are included in written statements furnished in any month to the employer pursuant to section 6053(a), exceeds the compensation of the employee (excluding tips) from which the employer is required to collect the tax under paragraph (1), the employee m a j furnish to the employer on or before the 10th day of the'following month (or, if paragraph (3) applies, on or before the 30th day of the following quarter) an amount of money equal to the amount of the excess. "(3) The Secretary or his delegate maj-, under regulations prescribed by him, authorize employers—