[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: 26CFR31.3401(a)(11)-1]

[Page 207-208]
 
                       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 E_Collection of Income Tax at Source
 
Sec. 31.3401(a)(11)-1  Remuneration other than in cash for service not 
in the course of employer's trade or business.

    (a) Remuneration paid in any medium other than cash for services not 
in the course of the employer's trade or business is excepted from wages 
and hence is not subject to withholding. Cash remuneration includes 
checks and other monetary media of exchange. Remuneration paid in any 
medium other than cash, such as lodging, food, or other goods or 
commodities, for services not in the course of the employer's trade or 
business does not constitute wages. Remuneration paid in any medium 
other than cash for other types of

[[Page 208]]

services does not come within this exception from wages. For provisions 
relating to cash remuneration for service not in the course of 
employer's trade or business, see Sec. 31.3401(a)(4)-1.
    (b) As used in this section, the term ``services not in the course 
of the employer's trade or business'' has the same meaning as when used 
in Sec. 31.3401(a)(4)-1.