PRINTER'S NO. 1910
No. 1540 Session of 1983
INTRODUCED BY DORR, McMONAGLE, TRELLO, SEVENTY, LETTERMAN,
G. M. SNYDER, D. W. SNYDER, J. L. WRIGHT, SEMMEL, SCHULER,
GODSHALL, E. Z. TAYLOR, BUNT, DAVIES, FLICK AND
A. C. FOSTER, JR., OCTOBER 11, 1983
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 11, 1983
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," excluding certain Federally qualified old age or
11 retirement benefit payments from the definition of
12 "compensation."
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 301(d) of the act of March 4, 1971
16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
17 9, 1972 (P.L.273, No.66), is amended to read:
18 Section 301. Definitions.--The following words, terms and
19 phrases when used in this article shall have the meaning
20 ascribed to them in this section except where the context
21 clearly indicates a different meaning. Any reference in this
22 article to the Internal Revenue Code shall include the Internal
1 Revenue Code of 1954, as amended to the date on which this
2 article is effective:
3 * * *
4 (d) "Compensation" means and shall include salaries, wages,
5 commissions, bonuses and incentive payments whether based on
6 profits or otherwise, fees, tips and similar remuneration
7 received for services rendered, whether directly or through an
8 agent, and whether in cash or in property.
9 The term "compensation" shall not mean or include: (i)
10 periodic payments for sickness and disability other than regular
11 wages received during a period of sickness or disability; or
12 (ii) disability, retirement or other payments arising under
13 workmen's compensation acts, occupational disease acts and
14 similar legislation by any government; or (iii) payments
15 commonly recognized as old age or retirement benefits paid to
16 persons retired from service after reaching a specific age or
17 after a stated period of employment; or (iv) payments commonly
18 known as public assistance, or unemployment compensation
19 payments by any governmental agency; or (v) payments to
20 reimburse actual expenses; or (vi) payments made by employers or
21 labor unions for programs covering hospitalization, sickness,
22 disability or death, supplemental unemployment benefits, strike
23 benefits, social security and retirement; or (vii) any
24 compensation received by United States servicemen serving in a
25 combat zone; or (viii) lump sum distributions from Federally
26 qualified employe pension plans, individual retirement accounts,
27 simplified employe pension plans, Keogh plans or similar old age
28 or retirement benefits plans where the distributions are
29 transferred into another plan within 60 days of receipt and
30 where the transferred amounts are not included in income for
19830H1540B1910 - 2 -
1 Federal income tax purposes.
2 * * *
3 Section 2. This act shall take effect in 60 days.
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