---
kind: "section"
citation: "20 C.F.R. § 220.163"
title: "20"
number: "220.163"
heading: "Employee penalty deductions."
url: "https://uscodex.org/cfr/20/220.163"
---

# §220.163. Employee penalty deductions.


If the employee earns over $400 in a month and does not report it within the time limit shown in [§ 220.162(b)](/cfr/20/220.162.md?p=b), a penalty is imposed. The penalty deduction for the first failure to report equals the annuity amount for the first month in which the employee earned over $400. The deduction for a second or later failure to report equals the annuity amount for each month in which the employee earned over $400 and failed to report it on time.


## Notes

### Authority

Authority: 45 U.S.C. 231a; 45 U.S.C. 231f.

### Source

Source: 56 FR 12980, Mar. 28, 1991, unless otherwise noted.