---
kind: "section"
citation: "20 C.F.R. § 404.1054"
title: "20"
number: "404.1054"
heading: "Payments by an employer of employee's tax or employee's contribution under State law."
url: "https://uscodex.org/cfr/20/404.1054"
---

# §404.1054. Payments by an employer of employee's tax or employee's contribution under State law.

- (a) We exclude as wages any payment by an employer (described in [paragraph (b)](#b) of this section) that is not deducted from the employee's salary (or for which reimbursement is not made by the employee) of either—
  - (1) The tax imposed by section 3101 of the Code (employee's share of Social Security tax); or
  - (2) **Any payment required from an employee under a State unemployment compensation law.**
- (b) The payments described in [paragraph (a)](#a) of this section are not included as wages only if they are made by an employer on behalf of an employee employed in—
  - (1) Domestic service in the private home of the employer; or
  - (2) **Agricultural labor.**

## Notes

### Amendments

[55 FR 7310, Mar. 1, 1990]

### Authority

Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230, 231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v), 405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)) and 48 U.S.C.1801.

### Source

Source: 45 FR 20075, Mar. 27, 1980, unless otherwise noted.

### Amendments

[55 FR 7310, Mar. 1, 1990]