Rev. Rul. 55-366

An employee received wages or payments under a wage continuation plan for the period September 17, 1953, through February 1, 1954, during which he was absent from work on account of sickness. In October 1953 he was hospitalized, but none of the period of absence in 1954 was spent in the hospital. Held, the requirement with respect to the 7-day waiting period provided in section 105(d) of the Internal Revenue Code of 1954 is met at the end of the seventh day of absence on account of sickness even though the seventh day occurs prior to January 1, 1954. Similarly, the alternative requirement of hospitalization is met when the employee is hospitalized on account of sickness for 1 day during the period of absence, even though it is in the portion of the period of absence which occurs in 1953. Only wages or payments in lieu of wages received after December 31, 1953, however, are excludable under section 105(d)