deduction of tax from wages

deduction of tax from wages Sec. 355. (a) Section 3102(a) of the Internal Revenue Code of 1954 is amended by striking out “or (C) or (10)”, and by inserting after “is less than $50;” the following: “and an employer who in any calendar year pays to an employee cash remuneration to which paragraph (7) (C) or (10) of section 3121(a) is applicable may deduct an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than $100;”, (b) (1) Paragraphs (1) and (2) of section 3102(c) of such Code are each amended by striking out “quarter” wherever it appears and by inserting in lieu thereof “year”. (2) Paragraph (3) of section 3102(c) of such Code is amended— (A) by striking out “quarter of the” in subparagraph (A); and (B) by striking out “quarter” wherever it appears in subparagraphs (B) and (C) and inserting in lieu thereof “year”. (c) The amendments made by this section shall apply with respect to remuneration paid and to tips received after December 31, 1977.