872

LAWS OF MARYLAND

Ch. 197

the Executive Director. Amounts paid to traveling salesmen or
other individuals as allowance or reimbursement for traveling or
other expenses incurred on the business of the employing unit
shall be deemed to constitute wages only to the extent of the
excess of those amounts over the expenses actually incurred and
accounted for by the individual to his employing unit. "Wages"
does not include:

(1)  That part of remuneration which, beginning
January 1, 1972, is in excess of $4,200, beginning January 1,
1978, is in excess of $6,000, and beginning January 1, 1983, is
in excess of $7,000 paid during the calendar year to an
individual by an employer, or his predecessor, or by a
combination of both the employer and his predecessor, with
respect to employment in this State or any other state if the
employee was in a continuous period of employment immediately
before and immediately subsequent to transfer of business. The
term predecessor as used in this subsection shall mean the same
as it means in § 8(c)(6) of this article. However, if the
maximum amount of wages taxable under the Federal Unemployment
Tax Act or any other federal tax law against which credit may be
taken for contributions into a state unemployment insurance fund
is increased in the future over and above the amount of $7,000 in
any calendar year, the limitation set forth in this section shall
automatically increase to the amount required by the federal law.

(2)  The amount of any payment (including any amount
paid by an employer for insurance or annuities, or into a fund to
provide for any such payment) made to or on behalf of an employee
or any of his dependents under a plan or system established by an
employer which makes provision for his employees generally (or
for his employees generally and their dependents) or for a class
or classes of his employees (or for a class or classes of his
employees and their dependents), on account of retirement,
sickness or accident disability, medical or hospitalization
expenses in connection with sickness or accident disability, or
death. In the case of payments made to an employee or any of the
employee's dependents for sickness or accident disability, this
paragraph shall exclude from the term wages only those payments
which are received under a workmen's compensation law.

(3)  Any payment made to an employee (including any
amount paid by an employer for insurance or annuities, or into a
fund to provide for any such payment) on account of retirement;

(4)  Any payment on account of sickness or accident
disability, or medical or hospitalization expenses in connection
with sickness or accident disability, made by an employer to, or
on behalf of, an employee after the expiration of six calendar
months following the last calendar month in which the employee
worked for that employer;

(5)  Any payment made to, or on behalf of, an employee
or his beneficiary from or to a trust exempt from tax under §
401(a) of the federal Internal Revenue Code at the time of that