### Question
How does the law define differential wage payment?


### Answer
Under *26 U.S.C. § 3401*, **differential wage payment** is defined as:

> any payment which—


(A) is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code) while on active duty for a period of more than 30 days, and


(B) represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer

#### Citation:
  - *26 U.S.C. § 3401*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 24-COLLECTION OF INCOME TAX AT SOURCE ON WAGES**

