(A) In general The following amounts shall be treated as wages paid to an employee:
(i) Any amount paid or incurred by an employer which is excludable from the gross income of an employee under section
127, but only to the extent paid or incurred to a person not related to the employer.
(ii) In the case of an employee who has not attained the age of 19, any amount paid or incurred by an employer for any youth training program operated by such employer in conjunction with local education officials.
(B) Related person A person is related to any other person if the person bears a relationship to such other person specified in section
267 (b) or
707 (b)(1), or such person and such other person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section
267 (b) or
707 (b)(1), 10 percent shall be substituted for 50 percent.
