Common use of Tax Treatment of Employee Retirement Contributions Clause in Contracts

Tax Treatment of Employee Retirement Contributions. The purpose of this article is to implement the provisions contained in section 414(h) (2) of the Internal Revenue Code concerning the tax treatment of employee retirement contributions paid by the State of California on behalf of employees in Bargaining Units 1, 3, 4,11,14,15,17,20, and 21. Pursuant to section 414(h) (2) contributions to a pension plan, although designated under the plan as employee contributions, when paid by the employer in lieu of contributions by the employee, under circumstances in which the employee does not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer, may be excluded from the gross income of the employee until these amounts are distributed or made available to the employee. Implementation for section 414(h) (2) is accomplished through reduction in wages pursuant to the provisions of this article.

Tax Treatment of Employee Retirement Contributions. The purpose of this article Article is to implement the provisions contained in section 414(h) (2414(h)(2) of the Internal Revenue Code concerning the tax treatment of employee retirement contributions paid by the State of California on behalf of employees in Bargaining Units 1, 3, 4,11,14,15,17,204, 11, 14, 15, 17, 20, and 21. Pursuant to section 414(h) (2414(h)(2) contributions to a pension plan, although designated under the plan as employee contributions, when paid by the employer in lieu of contributions by the employee, under circumstances in which the employee does not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer, may be excluded from the gross income of the employee until these amounts are distributed or made available to the employee. Implementation for section 414(h) (2414(h)(2) is accomplished through reduction in wages pursuant to the provisions of this articleArticle.