tax on employers of individuals who receive income from tips

tax on employers of individuals who receive income from tips 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 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 91 STAT. 1537employment) at the minimum wage rate applicable to such individual under section 6(a) (1) of the Fair Labor Standards Act of 1938 (determined without regard to section 3(m) of such Act), the wages so paid shall be deemed for purposes of section 3111 to be equal to such total amount.”. (b) Section 3111 of such Code is amended by inserting “and (t)” after “3121(a)” in subsections (a) and (b). (c) The amendments made by this section shall apply with respect to wages paid with respect to employment performed in months after December 1977.