; and (ii) amounts paid by reason of section 170202. (c) Employment tax treatment for amounts paid through grants (1) 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 Act shall not be considered wages. (2) 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 Act shall be equal to the sum of— (A) 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 Act) paid during any calendar year by such employer for services rendered to such employer