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[Federal Register: March 24, 2008 (Volume 73, Number 57)]
[Rules and Regulations]               
[Page 15410-15411]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24mr08-7]                         

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

 
Employment Taxes and Collection of Income Tax at Source

CFR Correction

    In Title 26 of the Code of Federal Regulations, Parts 30 to 39, 
revised as of April 1, 2007, in Sec.  31.3121(s)-1, on page 104, 
paragraph (b)(2)(iii) is corrected and, on page 107, paragraph 
(c)(2)(iii) is revised to read as follows:

Sec.  31.3121(s)-1  Concurrent employment by related corporations with 
common paymaster.

* * * * *
    (b) * * *
    (2) * * *
    (iii) Examples. The rules of this subparagraph are illustrated by 
the following examples:

    Example 1. S, T, U, and V are related corporations with 2,000 
employees collectively. Forty of these employees are concurrently 
employed by two or more of the corporations, during a calendar 
quarter. The four corporations arrange for S to disburse 
remuneration to thirty of these forty employees for their services. 
Under these facts, S is the common paymaster of S, T, U, and V with 
respect to the thirty employees. S is not a common paymaster with 
respect to the remaining employees.
    Example 2. (a) W, X, Y, and Z are related corporations. The 
corporations collectively have 20,000 employees. Two hundred of the 
employees are top-level executives and managers, sixty of whom are 
concurrently employed by two or more of the corporations during a 
calendar quarter. Six thousand of the employees are skilled 
artisans, all of whom are concurrently employed by two or more of 
the corporations during the calendar year. The four corporations 
arrange for Z to disburse remuneration to the sixty executives who 
are concurrently employed by two or more of the corporations. W and 
X arrange for X to disburse remuneration to the artisans who are 
concurrently employed by W and X.
    (b) A is an executive who is concurrently employed only by W, Y, 
and Z during the calendar year. Under these facts, Z is a common 
paymaster for W, Y, and Z with respect to A. Assuming that the other 
requirements of this section are met, the amount of the tax 
liability under sections 3102 and 3111 is determined as if Z were 
A's only employer for the calendar quarter.
    (c) B is a skilled artisan who is concurrently employed only by 
W and X

[[Page 15411]]

during the calendar year. Under these facts, X is a common paymaster 
for S and X with respect to B. Assuming that the other requirements 
of this section are met, the amount of the tax liability under 
sections 3102 and 3111 is determined as if X were B's only employer 
for the calendar quarter.
* * * * *
    (c) * * *
    (2) * * *
    (iii) [Reserved]. For further guidance, see Sec.  31.3121(s)-
1T(c)(2)(iii).
* * * * *
[FR Doc. 08-55507 Filed 3-21-08; 8:45 am]

BILLING CODE 1505-01-D

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