Treasury Regulations · 26 CFR
§ 31.3402(j)-1. Remuneration other than in cash for service performed by retail commission salesman.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 3402(j)
Cite as 26 CFR § 31.3402(j)-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- December 20, 1960 by T.D. 6516
- Last amended
- July 25, 2006 by T.D. 9276
- Issued under
- 26 U.S.C. § 3402(j)
- Length
- 509 words · about 2 min to read
- Defines
- 2 terms
- Cross-references
- cites 2 Code sections and 1 regulation; cited by 4
¶(a) In general.
¶(1) An employer, in computing the amount to be deducted and withheld as tax in accordance with section 3402, may, at his election, disregard any wages paid, after August 9, 1955, in a medium other than cash for services performed for him by an employee if (i) the noncash remuneration is paid for services performed by the employee as a retail commission salesman and (ii) the employer ordinarily pays the employee remuneration solely by way of cash commissions for services performed by him as a retail commission salesman.
¶(2) Section 3402(j) and this section are not applicable with respect to wages paid to the employee that are subject to withholding under § 31.3402(g)-1(a)(2). Section 3402(j) and this section are not applicable with respect to noncash wages paid to a retail commission salesman for services performed by him in a capacity other than as such a salesman. Such sections are not applicable with respect to noncash wages paid by an employer to an employee for services performed as a retail commission salesman if the employer ordinarily pays the employee remuneration other than by way of cash commissions for such services. Thus, noncash remuneration may not be disregarded in computing the amount to be deducted and withheld in a case where the employee, for services performed as a retail commission salesman, is paid both a salary and cash commissions on sales, or is ordinarily paid in something other than cash (stocks, bonds, or other forms of property) notwithstanding that the amount of remuneration paid to the employee is measured by sales.
¶(b) Retail commission salesman. For purposes of section 3402(j) and this section, the term “retail commission salesman” includes an employee who is engaged in the solicitation of orders at retail, that is, from the ultimate consumer, for merchandise or other products offered for sale by his employer. The term does not include an employee salesman engaged in the solicitation on behalf of his employer of orders from wholesalers, retailers, or others, for merchandise for resale. However, if the salesman solicits orders for more than one principal, he is not excluded from the term solely because he solicits orders from wholesalers or retailers on behalf of one or more principals. In such case the salesman may be a retail commission salesman with respect to services performed for one or more principals and not with respect to services performed for his other principals.
¶(c) Noncash remuneration. The term “noncash remuneration” includes remuneration paid in any medium other than cash, such as goods or commodities, stocks, bonds, or other forms of property. The term does not include checks or other monetary media of exchange.
[T.D. 6516, 25 FR 13032, Dec. 20, 1960; 25 FR 14021, Dec. 31, 1960, as amended by T.D. 9276, 71 FR 42057, July 25, 2006]
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 3402 Income tax collected at source
- § 6001 Notice or regulations requiring records, statements, and special returns
Regulations it cites
Cited by 4 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 9276 (71 FR 42057)
- Amended (25 FR 14021)
- Issued by T.D. 6516 (25 FR 13032)
Where it sits in 26 CFR
- Subchapter C Employment taxes and collection of income tax at source
- Part 31 Employment taxes and collection of income tax at source
- Subpart E Collection of Income Tax at Source
Nearby sections
- § 31.3402(h)(2)-1 Withholding on basis of annualized wages.
- § 31.3402(h)(3)-1 Withholding on basis of cumulative wages.
- § 31.3402(h)(4)-1 Other methods.
- § 31.3402(i)-1 Increases in withholding.
- § 31.3402(j)-1 Remuneration other than in cash for service performed by retail commission salesman.
- § 31.3402(k)-1 Special rule for tips.
- § 31.3402(l)-1 Determination and disclosure of marital or filing status.
- § 31.3402(m)-1 Additional withholding allowance.
- § 31.3402(n)-1 Employees incurring no income tax liability.