EMPLOYMENT TAX

Rev. Rul. 2004–37, page 583. Reduction in stated principal amount of a recourse note issued by employee to employer to acquire employer stock. This ruling provides guidance in cases where an employer and employee reduce the stated principal amount of a recourse note issued by an employee to the employer to acquire employer stock. This ruling holds that the employee recognizes compensation income equal to the amount of the reduction.

Notice 2004–17, page 605. This notice provides that benefits received under the Smallpox Emergency Personnel Protection Act of 2003 (SEPPA) are exempt from income and employment taxes.