PRINTER'S NO. 3292
No. 2471 Session of 1998
INTRODUCED BY CALTAGIRONE, JOSEPHS, CAPPABIANCA, ORIE, SURRA,
COY, MILLER, TRELLO, RAMOS, HORSEY, JAMES, STABACK, BELARDI,
SEYFERT, LAUGHLIN, BELFANTI, READSHAW, TRICH, SHANER AND
SEMMEL, MARCH 25, 1998
REFERRED TO COMMITTEE ON FINANCE, MARCH 25, 1998
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," further defining "compensation."
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 301(d) of the act of March 4, 1971
14 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
15 7, 1997 (P.L.85, No.7), is amended to read:
16 Section 301. Definitions.--The following words, terms and
17 phrases when used in this article shall have the meaning
18 ascribed to them in this section except where the context
19 clearly indicates a different meaning. Unless specifically
20 provided otherwise, any reference in this article to the
21 Internal Revenue Code shall include the Internal Revenue Code of
1 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), as amended to
2 January 1, 1997:
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, including payments made pursuant to a cafeteria
22 plan qualifying under section 125 of the Internal Revenue Code
23 of 1986 (Public Law 99-514, 26 U.S.C. § 125), for employe
24 benefit programs covering hospitalization, sickness, disability
25 or death, supplemental unemployment benefits or strike benefits:
26 Provided, That the program does not discriminate in favor of
27 highly compensated individuals as to eligibility to participate,
28 payments or program benefits; or (vii) any compensation received
29 by United States servicemen serving in a combat zone; or (viii)
30 payments received by a foster parent for in-home care of foster
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1 children from an agency of the Commonwealth or a political
2 subdivision thereof or an organization exempt from Federal tax
3 under section 501(c)(3) of the Internal Revenue Code of 1954
4 which is licensed by the Commonwealth or a political subdivision
5 thereof as a placement agency; or (ix) payments made by
6 employers or labor unions for employe benefit programs covering
7 social security or retirement[.]; or (x) the first fifty
8 thousand dollars ($50,000) of income produced annually by an
9 owner of a family-owned, family-occupied and family-operated
10 farm from operating that farm.
11 * * *
12 Section 2. This act shall take effect in 60 days.
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