---
kind: "section"
citation: "26 U.S.C. § 3123"
title: "26"
title_heading: "Internal Revenue Code"
number: "3123"
heading: "Deductions as constructive payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/3123"
units:
  - "Subtitle C — Employment Taxes"
  - "Chapter 21 — Federal Insurance Contributions Act"
  - "Subchapter C — General Provisions"
---

# §3123. Deductions as constructive payments


Whenever under this chapter or any act of Congress, or under the law of any [State](/usc/26/3121.md?p=e-1), an [employer](/usc/26/3231.md?p=a) is required or permitted to deduct any amount from the remuneration of an [employee](/usc/26/3121.md?p=d) and to pay the amount deducted to the [United States](/usc/26/3121.md?p=e-2), a [State](/usc/26/3121.md?p=e-1), or any [political subdivision](/usc/26/3121.md?p=j-4-C) thereof, then for purposes of this chapter the amount so deducted shall be considered to have been paid to the [employee](/usc/26/3121.md?p=d) at the time of such deduction.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 429.)