[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR31.3121(a)-2]

[Page 22-23]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents
 
  Subpart B_Federal Insurance Contributions Act (Chapter 21, Internal 
                          Revenue Code of 1954)
 
Sec. 31.3121(a)-2  Wages; when paid and received.

    (a) In general, wages are received by an employee at the time that 
they are paid by the employer to the employee. Wages are paid by an 
employer at the time that they are actually or constructively paid 
unless under paragraph (c) of this section they are deemed to be 
subsequently paid. For provisions relating to the time when tips 
received by an employee are deemed paid to the employee, see Sec. 
31.3121(q)-1.
    (b) Wages are constructively paid when they are credited to the 
account of or set apart for an employee so that they may be drawn upon 
by him at any time although not then actually reduced to possession. To 
constitute payment in such a case the wages must be credited to or set 
apart for the employee without any substantial limitation or restriction 
as to the time or manner of payment or condition upon which payment is 
to be made, and must be made available to him so that they may be drawn 
upon at any time, and their payment brought within his own control and 
disposition. For provisions relating to the treatment of deductions from 
remuneration as payments of remuneration, see Sec. 31.3123-1.
    (c) (1) The first $50 of cash remuneration paid, either actually or 
constructively, by an employer to an employee in a calendar quarter 
for--
    (i) Service to which Sec. 31.3121(a)(7)-1 is applicable (service 
not in the course of the employer's trade or business and domestic 
service in a private home of the employer); or
    (ii) Service to which Sec. 31.3121(a)(10)-1 is applicable (service 
performed by certain home workers),

shall be deemed to be paid by the employer to the employee at the first 
moment of time in such calendar quarter that the sum of such cash 
payments made within such quarter is at least $50.
    (2)(i) The first $100 of cash remuneration paid, either actually or 
constructively, by an employer to an employee in the calendar year 1955 
or 1956 for agricultural labor to which Sec. 31.3121 (a)(8)-1 is 
applicable shall be deemed to be paid by the employer to the employee at 
the first moment of time in such calendar year that the sum of such cash 
payments made within such year is at least $100.
    (ii) Cash remuneration paid, either actually or constructively, by 
an employer to an employee in a calendar year after 1956 for 
agricultural labor to which Sec. 31.3121(a)(8)-1 is applicable, and 
before either of the events described in (a) or (b) of this subdivision 
has occurred, shall be deemed to be paid upon the occurrence of the 
earlier of such events, as follows:
    (a) The first moment of time in such calendar year that the sum of 
the payments of such remuneration is at least $150, or
    (b) The twentieth day in such calendar year on which the employee 
has performed such agricultural labor for the employer for cash 
remuneration computed on a time basis.

[[Page 23]]

    (3) If an employer pays cash remuneration to an employee for two or 
more of the types of service referred to in this paragraph, the 
provisions of this paragraph are to be applied separately to the amount 
of remuneration attributable to each type of service.

[T.D. 6516, 25 FR 13032, Dec. 20, 1960, as amended by T.D. 6744, 29 FR 
8306, July 2, 1964; T.D. 7001, 34 FR 999, Jan. 23, 1969]