In general Any employer that makes an applicable payment during a calendar year shall include as a separately stated item on any written statement required under section 6051 of the Internal Revenue Code of 1986 or any return or statement required by the Secretary of the Treasury (or the Secretary's delegate) with respect to nonemployee compensation the aggregate amount of each type of applicable payments so made. (ii) Applicable payments For purposes of this subparagraph, the term applicable payments means amounts paid by reason of subsection (b). (3) Employment tax treatment for amounts paid through grants (A) In general For purposes of section 3111(a) of the Internal Revenue Code of 1986, any amounts required to be paid by reason of this section shall not be considered wages. (B) Railroad retirement taxes For purposes of section 3221(a) of the Internal Revenue Code of 1986, the amount of tax imposed under such section for any calendar year in which an employer is required to pay amounts under this section shall be equal to the sum of— (i) the product of the rate in effect under section 3111(a) of such Code and the compensation (reduced by any amounts required to be paid by reason of this section) paid during any calendar year by such employer for services rendered to such employer