EMPLOYMENT TAX

Rev. Rul. 2002–35, page 1067. Wages subject to federal employment tax . This ruling clarifies that payments to employees for equipment they are required to provide as a condition of employment are wages for federal employment tax purposes, unless paid under an accountable plan. Rev. Rul. 68–624 revoked.

Rev. Proc. 2002–41, page 1098. This procedure provides that employers in the pipeline construction industry may use an optional expense substantiation rule to provide reimbursements under an accountable plan to employees who also furnish welding rigs or mechanics rigs as a condition of employment and use those rigs in their performance of services as employees.

(Continued on the next page) Finding Lists begin on page ii.