Title 26 — Internal Revenue CodeRelease 119-73
§3123 Deductions as Constructive Payments
Title 26 › Subtitle Subtitle C— Employment Taxes › Chapter 21— FEDERAL INSURANCE CONTRIBUTIONS ACT › Subchapter C— General Provisions › § 3123
Summary
When an employer takes an amount out of a worker's pay and sends it to the federal, state, or local government, that money still counts as paid to the worker for Social Security tax purposes. It is treated as paid at the moment it was deducted.
Full Legal Text
Title 26, §3123
Internal Revenue Code — Source: USLM XML via OLRC
Whenever under this chapter or any act of Congress, or under the law of any State, an employer is required or permitted to deduct any amount from the remuneration of an employee and to pay the amount deducted to the United States, a State, or any political subdivision thereof, then for purposes of this chapter the amount so deducted shall be considered to have been paid to the employee at the time of such deduction.
Reference
Citations & Metadata
Citation
26 U.S.C. § 3123
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73