-CITE-
26 USC CHAPTER 22 - RAILROAD RETIREMENT TAX ACT 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
-HEAD-
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
-MISC1-
Subchapter Sec.(!1)
A. Tax on employees 3201
B. Tax on employee representatives 3211
C. Tax on employers 3221
D. General provisions 3231
E. Tier 2 tax rate determination. 3241
AMENDMENTS
2001 - Pub. L. 107-90, title II, Sec. 204(e)(5), Dec. 21, 2001,
115 Stat. 893, added item for subchapter E.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 3121, 3301, 3306, 3503,
5041, 6103, 6302 of this title; title 31 section 9502; title 42
section 1307; title 45 sections 358, 1207; title 49 sections 10501,
24301.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Tax on Employees 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter A - Tax on Employees
-HEAD-
SUBCHAPTER A - TAX ON EMPLOYEES
-MISC1-
Sec.
3201. Rate of tax.
3202. Deduction of tax from compensation.
-End-
-CITE-
26 USC Sec. 3201 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter A - Tax on Employees
-HEAD-
Sec. 3201. Rate of tax
-STATUTE-
(a) Tier 1 tax
In addition to other taxes, there is hereby imposed on the income
of each employee a tax equal to the applicable percentage of the
compensation received during any calendar year by such employee for
services rendered by such employee. For purposes of the preceding
sentence, the term "applicable percentage" means the percentage
equal to the sum of the rates of tax in effect under subsections
(a) and (b) of section 3101 for the calendar year.
(b) Tier 2 tax
(1) In general
In addition to other taxes, there is hereby imposed on the
income of each employee a tax equal to the applicable percentage
of the compensation received during any calendar year by such
employee for services rendered by such employee.
(2) Applicable percentage
For purposes of paragraph (1), the term "applicable percentage"
means -
(A) 4.90 percent in the case of compensation received during
2002 or 2003, and
(B) in the case of compensation received during any calendar
year after 2003, the percentage determined under section 3241
for such calendar year.
(c) Cross reference
For application of different contribution bases with respect
to the taxes imposed by subsections (a) and (b), see section
3231(e)(2).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 431; Aug. 31, 1954, ch. 1164,
pt. II, Sec. 206(a), 68 Stat. 1040; Pub. L. 86-28, pt. II, Sec.
201(a), May 19, 1959, 73 Stat. 28; Pub. L. 88-133, title II, Sec.
201, Oct. 5, 1963, 77 Stat. 221; Pub. L. 89-97, title I, Secs.
105(b)(1), 111(c)(1), July 30, 1965, 79 Stat. 335, 342; Pub. L.
89-212, Secs. 4, 5(a), Sept. 29, 1965, 79 Stat. 861; Pub. L.
89-699, title III, Sec. 301(a), Oct. 30, 1966, 80 Stat. 1078; Pub.
L. 89-700, title III, Sec. 301(v), (vi), Oct. 30, 1966, 80 Stat.
1088, 1089; Pub. L. 93-69, title I, Sec. 102(a), July 10, 1973, 87
Stat. 162; Pub. L. 94-93, title II, Sec. 201, Aug. 9, 1975, 89
Stat. 466; Pub. L. 94-455, title XIX, Sec. 1903(a)(6), Oct. 4,
1976, 90 Stat. 1807; Pub. L. 97-34, title VII, Sec. 741(a), Aug.
13, 1981, 95 Stat. 347; Pub. L. 98-76, title II, Secs. 211(a), 221,
Aug. 12, 1983, 97 Stat. 419, 420; Pub. L. 100-203, title IX, Sec.
9031(a), Dec. 22, 1987, 101 Stat. 1330-296; Pub. L. 101-508, title
V, Sec. 5125(a), Nov. 5, 1990, 104 Stat. 1388-285; Pub. L. 107-90,
title II, Sec. 204(c), Dec. 21, 2001, 115 Stat. 892.)
-MISC1-
AMENDMENTS
2001 - Subsec. (b). Pub. L. 107-90 amended heading and text of
subsec. (b) generally. Prior to amendment, text read as follows:
"In addition to other taxes, there is hereby imposed on the income
of each employee a tax equal to 4.90 percent of the compensation
received during any calendar year by such employee for services
rendered by such employee."
1990 - Subsec. (a). Pub. L. 101-508 substituted "applicable" for
"following" before "percentage of the" and provision defining the
term "applicable percentage" for provision specifying that in the
case of compensation received during 1985 the rate of tax was 7.05
percent, for 1986 or 1987 the rate was 7.15 percent, for 1988 or
1989 the rate was 7.51 percent, and 1990 or thereafter the rate was
7.65 percent.
1987 - Subsec. (b). Pub. L. 100-203 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: "In
addition to other taxes, there is hereby imposed on the income of
each employee a tax equal to the following percentage of the
compensation received during any calendar year by such employee for
services rendered by such employee:
"In the case of compensation
received during: The rate shall
be:
1985 3.50
1986 or thereafter 4.25."
1983 - Pub. L. 98-76, Sec. 221, amended section generally,
substituting a two tiered tax system with accompanying tax rate
tables and a cross reference to section 3231 of this title, for
provisions which had taxed an employee at 2.75 percent of so much
of the compensation paid in any calendar month to such employee for
services rendered by him as was not in excess of an amount equal to
one-twelfth of the current maximum annual taxable "wages" as
defined in section 3121 for any month and which had provided that
the rate of tax imposed by subsection (a) be increased by the rate
of the tax imposed with respect to wages by section 3101(a) plus
the rate imposed by section 3101(b) of so much of the compensation
paid in any calendar month to such employee for services rendered
by him as was not in excess of an amount equal to one-twelfth of
the current maximum annual taxable "wages" as defined in section
3121 for any month.
Pub. L. 98-76, Sec. 211(a), substituted "2.75 percent" for "2.0
percent".
1981 - Subsec. (a). Pub. L. 97-34 added subsec. (a).
Subsec. (b). Pub. L. 97-34 designated existing provisions as
subsec. (b) and substituted "The rate of tax imposed by subsection
(a) shall be increased by" for "In addition to other taxes, there
is hereby imposed on the income of every employee a tax rate equal
to".
1976 - Pub. L. 94-455 struck out "of the Internal Revenue Code of
1954" after "wages by section 3101(a)", "of such Code" after "rate
imposed by section 3101(b)", "after September 30, 1973," after "for
services rendered by him", "of the Internal Revenue Code of 1954"
after "as defined in section 3121", and "after September 30, 1973"
after "for any month".
1975 - Pub. L. 94-93 inserted "in any calendar month" after
"compensation paid".
1973 - Pub. L. 93-69 substituted new tax rate provisions on
income of employee for services rendered after Sept. 30, 1973, for
former provisions which prescribed 6 1/4 , 6 1/2 , 7, 7 1/4 , and 7
1/2 percent on income for services rendered after Sept. 30, 1965,
Dec. 31, 1965, Dec. 31, 1966, Dec. 31, 1967, and Dec. 31, 1968,
respectively, as is not in excess of (i) $450, or (ii) an amount
equal to one-twelfth of the current maximum annual taxable "wages"
as defined in section 3121 of the Internal Revenue Code of 1954,
whichever is greater, for any month after September 30, 1965:
Provided, That the rate of tax imposed by this section shall be
increased, with respect to compensation paid for services rendered
after September 30, 1965, by a number of percentage points
(including fractional points) equal at any given time to the number
of percentage points (including fractional points) by which the
rate of the tax imposed with respect to wages by section 3101(a)
plus the rate imposed by section 3101(b) at such time exceeds 2 3/4
percent (the rate provided by paragraph (2) of section 3101 as
amended by the Social Security Amendments of 1956).
1966 - Pub. L. 89-700 substituted "rendered after September 30,
1965" for "rendered after December 31, 1964", and "(i) $450, or
(ii) an amount equal to one-twelfth of the current maximum annual
taxable 'wages' as defined in section 3121 of the Internal Revenue
Code of 1954, whichever is greater, for any month after September
30, 1965" for "$400 for any calendar month before the calendar
month next following the month in which this provision was amended
in 1963, or $450 for any calendar month after the month in which
this provision was so amended and before the calendar month next
following the calendar month in which this provision was amended in
1965, or (i) $450, or (ii) an amount equal to one-twelfth of the
current maximum annual taxable 'wages' as defined in section 3121
of the Internal Revenue Code of 1954, whichever is greater, for any
month after the month in which this provision was so amended".
Pub. L. 89-699 substituted "7 percent" for "6 3/4 percent" in
subd. (3), "7 1/4 percent" for "7 percent" in subd. (4), and "7
1/2 percent" for "7 1/4 percent" in subd. (5).
1965 - Pub. L. 89-212 substituted pars. (1) to (5) for former
pars. (1) and (2) which imposed a tax equal to 6 3/4 percent of so
much of the compensation paid to such employee for services
rendered by him after the month in which this provision was amended
in 1959, and before Jan. 1, 1962, and 7 1/4 percent of so much of
the compensation paid to such employee for services rendered by him
after Dec. 31, 1961, and inserted "and before the calendar month
next following the calendar month in which this provision was
amended in 1965, or (i) $450, or (ii) an amount equal to
one-twelfth of the current maximum annual taxable 'wages' as
defined in section 3121 of the Internal Revenue Code of 1954,
whichever is greater, for any month after the month in which this
provision was so amended".
Pub. L. 89-97 substituted "the rate of the tax imposed with
respect to wages by section 3101(a) at such time exceeds 2 3/4
percent (the rate provided by paragraph (2) of section 3101 as
amended by the Social Security Amendments of 1956)" for "the rate
of the tax imposed with respect to wages by section 3101 at such
time exceeds the rate provided by paragraph (2) of such section
3101 as amended by the Social Security Amendments of 1956" and
inserted "plus the rate imposed by section 3101(b)" after "section
3101(a)", respectively.
1963 - Pub. L. 88-133 limited existing taxable compensation base
of $400 to any calendar month before Nov. 1963 and increased such
base to $450 for any calendar month after Oct. 1963.
1959 - Pub. L. 86-28 increased tax from 6 1/4 percent of
compensation not in excess of $350 for any calendar month to 6 3/4
percent of the compensation not in excess of $400 for any calendar
month for services rendered before Jan. 1, 1962, and to 7 1/4
percent for services rendered after Dec. 31, 1961, and required an
increase in the rate of tax with respect to compensation paid for
services rendered after Dec. 31, 1964, by a number of percentage
points equal at any given time to the number of percentage points
by which the rate of tax imposed by section 3101 of this title at
such time exceeds the rate provided by par. (2) of such section
3101 as amended by the Social Security Amendments of 1956.
1954 - Act Aug. 31, 1954, substituted "$350" for "$300".
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by Pub. L. 107-90 applicable to calendar years
beginning after Dec. 31, 2001, see section 204(f) of Pub. L.
107-90, set out as an Effective and Termination Dates of 2001
Amendments note under section 24 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Section 9031(b) of Pub. L. 100-203 provided that: "The amendment
made by this section [amending this section] shall apply with
respect to compensation received after December 31, 1987."
EFFECTIVE AND TERMINATION DATES OF 1983 AMENDMENT
Section 212 of Pub. L. 98-76 provided that: "The amendments made
by this part [part I (Secs. 211, 212) of subtitle A of title II of
Pub. L. 98-76, amending this section, sections 3211 and 3221 of
this title, and section 430 of Title 42, The Public Health and
Welfare] shall apply to compensation paid for services rendered
after December 31, 1983, and before January 1, 1985."
Section 227(a) of Pub. L. 98-76 provided that: "The amendments
made by sections 221, 222, 223, and 225 [amending this section and
sections 3202, 3211, 3221, and 3231 of this title and section 430
of Title 42] shall apply to remuneration paid after December 31,
1984."
EFFECTIVE DATE OF 1981 AMENDMENT
Section 741(e) of Pub. L. 97-34 provided that: "The amendments
made by this section [amending this section and sections 3211,
3221, and 3231 of this title and section 430 of Title 42, The
Public Health and Welfare] shall apply to compensation paid for
services rendered after September 30, 1981."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 applicable with respect to
compensation paid for services rendered after Dec. 31, 1976, see
section 1903(d) of Pub. L. 94-455, set out as a note under section
3101 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Section 207 of Pub. L. 94-93 provided that: "The amendments made
by sections 201 through 205 of this title [amending this section
and sections 3211, 3221, and 3231 of this title] shall apply for
taxable years ending on or after the date of the enactment of this
Act [Aug. 9, 1975] and for taxable years ending before the date of
the enactment of this Act as to which the period for assessment and
collection of tax or the filing of a claim for credit or refund has
not expired on the date of enactment of this Act. The amendment
made by section 206 of this title [amending section 3231 of this
title] shall apply for taxable years beginning on or after the date
of enactment of this Act: Provided, however, That with respect to
payment made prior to the date of enactment of this Act, the
employee may file a written request under section 206 within six
months after the enactment of this Act."
EFFECTIVE DATE OF 1973 AMENDMENT
Section 109(b) of Pub. L. 93-69 provided that: "The amendments
made by section 102 of this Act [amending this section and sections
3202, 3211, and 3221 of this title] shall become effective on
October 1, 1973, and shall apply only with respect to compensation
paid for services rendered on or after that date: Provided,
however, That such amendments shall not be applicable to any dock
company, common carrier railroad, or railway labor organization
described in section 1(a) of the Railroad Retirement Act of 1937
[section 228a(a) of Title 45, Railroads], with respect to those of
its employees covered as of October 1, 1973, by a private
supplemental pension plan established through collective
bargaining, where a moratorium in an agreement made on or before
March 8, 1973, is applicable to changes in rates of pay contained
in the current collective-bargaining agreement covering such
employees, until the earlier of (1) the date as of which such
moratorium expires, or (2) the date as of which such dock company,
common carrier railroad, or railway labor organization agrees
through collective bargaining to make the provisions of such
amendments applicable."
EFFECTIVE DATE OF 1965 AMENDMENTS
Section 6 of Pub. L. 89-212 provided that: "The amendments made
by sections 1 and 3 of this Act [amending sections 228b, 228c, and
228e of Title 45, Railroads] shall take effect with respect to
annuities accruing and deaths occurring in months after the month
in which this Act is enacted [September 1965], and shall apply also
to annuities paid in lump sums equal to their commuted value
because of a reduction in such annuities under section 2(e) of the
Railroad Retirement Act of 1937 [section 228b(e) of Title 45], as
in effect before the amendments made by this Act, as if such
annuities had not been paid in such lump sums: Provided, however,
That the amounts of such annuities which were paid in lump sums
equal to their commuted value shall not be included in the amount
of annuities which become payable by reason of section 1 of this
Act [amending section 228b of Title 45]. The amendments made by
section 2 of this Act [amending sections 3203, 3231, 3402, 6053,
and 6652 of this title, and section 228a of Title 45] shall apply
only with respect to tips received after 1965. The amendments made
by section 4 of this Act [amending this section and sections 3202,
3211, and 3221 of this title] shall apply only with respect to
calendar months after the month in which this Act is enacted. The
amendments made by section 5 of this Act [amending this section and
sections 3211 and 3221 of this title] shall apply only with respect
to compensation paid for services rendered after September 30,
1965."
Section 105(b)(4) of Pub. L. 89-97 provided that: "The amendments
made by this subsection [amending this section and sections 3211
and 3221 of this title] shall be effective with respect to
compensation paid for services rendered after December 31, 1965."
Amendment by section 111(c)(1) of Pub. L. 89-97 applicable to
calendar year 1966, or to any subsequent calendar year but only if
by October 1 immediately preceding such calendar year the Railroad
Retirement Tax Act [this chapter] provides for a maximum amount of
monthly compensation taxable under such Act during all months of
such calendar year equal to one-twelfth of maximum wages which
Federal Insurance Contributions Act [section 3101 et seq. of this
title] provides may be counted for such calendar year, see section
111(e) of Pub. L. 89-97, set out as an Effective Date note under
section 1395i-1 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1959 AMENDMENT
Section 202 of Pub. L. 86-28 provided that: "The amendments made
by section 201 [amending this section and sections 3202, 3211, and
3221 of this title] shall, except as otherwise provided in such
amendments, be effective as of the first day of the calendar month
next following the month in which this Act was enacted [May, 1959],
and shall apply only with respect to compensation paid after the
month of such enactment, for services rendered after such month of
enactment."
EFFECTIVE DATE OF 1954 AMENDMENT
Section 407 of act Aug. 31, 1954, as amended by act Oct. 22,
1986, Pub. L. 99-514, Sec. 2, 100 Stat. 2095, provided that: "The
amendments to the Internal Revenue Code of 1986 [formerly I.R.C.
1954] made by section 206 [amending this section and sections 3202,
3211, 3221, and 3231 of this title] shall become effective as if
enacted as a part of the Internal Revenue Code of 1986."
SEPARABILITY
Section 301 of Pub. L. 93-69 provided that: "If any provision of
this Act [amending this section, sections 3202, 3211, and 3221 of
this title, sections 228b, 228c, and 228e of Title 45, Railroads,
and section 15a of former Title 49, and enacting provisions set out
as notes under this section, and sections 228b, 228c, 228f, and
228o of Title 45] or the application thereof to any person or
circumstances should be held invalid, the remainder of such Act or
the application of such provision to other persons or circumstances
shall not be affected thereby."
PENALTIES AND INTEREST NOT ASSESSED FOR FAILURE TO MAKE TIMELY
PAYMENT DURING PERIOD JANUARY 1, 1982, TO JUNE 30, 1982, OF TAXES
ATTRIBUTABLE TO AMENDMENTS BY PUB. L. 97-123
For provision that no penalties or interest shall be assessed on
account of any failure to make timely payment of taxes imposed by
subsec. (b) of this section with respect to payments made for the
period Jan. 1, 1982, and ending June 30, 1982, to the extent that
such taxes are attributable to section 3 of Pub. L. 97-123 or the
amendments made by that section, see section 3(f) of Pub. L.
97-123, set out as a note under section 3101 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 72, 275, 1402, 3202,
3231, 3241, 3502, 6051, 6053, 6205, 6413, 6652 of this title; title
45 sections 231, 231e, 231f-1, 231n-1.
-End-
-CITE-
26 USC Sec. 3202 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter A - Tax on Employees
-HEAD-
Sec. 3202. Deduction of tax from compensation
-STATUTE-
(a) Requirement
The taxes imposed by section 3201 shall be collected by the
employer of the taxpayer by deducting the amount of the taxes from
the compensation of the employee as and when paid. An employer who
is furnished by an employee a written statement of tips (received
in a calendar month) pursuant to section 6053(a) to which paragraph
(3) of section 3231(e) is applicable may deduct an amount
equivalent to such taxes with respect to such tips from any
compensation of the employee (exclusive of tips) under his control,
even though at the time such statement is furnished the total
amount of the tips included in statements furnished to the employer
as having been received by the employee in such calendar month in
the course of his employment by such employer is less than $20.
(b) Indemnification of employer
Every employer required under subsection (a) to deduct the tax
shall be liable for the payment of such tax and shall not be liable
to any person for the amount of any such payment.
(c) Special rule for tips
(1) In the case of tips which constitute compensation, subsection
(a) shall be applicable only to such tips as are included in a
written statement furnished to the employer pursuant to section
6053(a), and only to the extent that collection can be made by the
employer, at or after the time such statement is so furnished and
before the close of the 10th day following the calendar month (or,
if paragraph (3) applies, the 30th day following the quarter) in
which the tips were deemed paid, by deducting the amount of the tax
from such compensation of the employee (excluding tips, but
including funds turned over by the employee to the employer
pursuant to paragraph (2)) as are under control of the employer.
(2) If the taxes imposed by section 3201, with respect to tips
which are included in written statements furnished in any month to
the employer pursuant to section 6053(a), exceed the compensation
of the employee (excluding tips) from which the employer is
required to collect the taxes under paragraph (1), the employee may
furnish to the employer on or before the 10th day of the following
month (or, if paragraph (3) applies, on or before the 30th day of
the following quarter) an amount of money equal to the amount of
the excess.
(3) The Secretary may, under regulations prescribed by him,
authorize employers -
(A) to estimate the amount of tips that will be reported by the
employee pursuant to section 6053(a) in any quarter of the
calendar year,
(B) to determine the amount to be deducted upon each payment of
compensation (exclusive of tips) during such quarter as if the
tips so estimated constituted actual tips so reported, and
(C) to deduct upon any payment of compensation (other than
tips, but including funds turned over by the employee to the
employer pursuant to paragraph (2)) to such employee during such
quarter (and within 30 days thereafter) such amount as may be
necessary to adjust the amount actually deducted upon such
compensation of the employee during the quarter to the amount
required to be deducted in respect of tips included in written
statements furnished to the employer during the quarter.
(4) If the taxes imposed by section 3201 with respect to tips
which constitute compensation exceed the portion of such taxes
which can be collected by the employer from the compensation of the
employee pursuant to paragraph (1) or paragraph (3), such excess
shall be paid by the employee.
(d) Special rule for certain taxable group-term life insurance
benefits
(1) In general
In the case of any payment for group-term life insurance to
which this subsection applies -
(A) subsection (a) shall not apply,
(B) the employer shall separately include on the statement
required under section 6051 -
(i) the portion of the compensation which consists of
payments for group-term life insurance to which this
subsection applies, and
(ii) the amount of the tax imposed by section 3201 on such
payments, and
(C) the tax imposed by section 3201 on such payments shall be
paid by the employee.
(2) Benefits to which subsection applies
This subsection shall apply to any payment for group-term life
insurance to the extent -
(A) such payment constitutes compensation, and
(B) such payment is for coverage for periods during which an
employment relationship no longer exists between the employee
and the employer.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 431; Aug. 31, 1954, ch. 1164,
pt. II, Sec. 206(a), 68 Stat. 1040; Pub. L. 86-28, pt. II, Sec.
201(b), May 19, 1959, 73 Stat. 29; Pub. L. 88-133, title II, Sec.
202, Oct. 5, 1963,77 Stat. 221; Pub. L. 89-212, Secs. 2(a), 4,
Sept. 29, 1965, 79 Stat. 858, 861; Pub. L. 89-700, title III, Sec.
301(iii), (v), Oct. 30, 1966, 80 Stat. 1088; Pub. L. 93-69, title
I, Sec. 102(b), July 10, 1973, 87 Stat. 162; Pub. L. 94-455, title
XIX, Secs. 1903(a)(7), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1807,
1834; Pub. L. 98-76, title II, Sec. 225(a)(2), (c)(1)(A), (B),
(2)-(5), Aug. 12, 1983, 97 Stat. 425; Pub. L. 101-508, title V,
Sec. 5124(b), Nov. 5, 1990, 104 Stat. 1388-285.)
-MISC1-
AMENDMENTS
1990 - Subsec. (d). Pub. L. 101-508 added subsec. (d).
1983 - Subsec. (a). Pub. L. 98-76, Sec. 225(a)(2), (c)(1)(A),
(2), substituted "taxes imposed by section 3201" for "tax imposed
by section 3201", substituted "the amount of the taxes" for "the
amount of the tax", and "such taxes" for "such tax", and struck out
provisions that if an employee was paid compensation by more than
one employer for services rendered during any calendar month and
the aggregate of such compensation was in excess of an amount equal
to one-twelfth of the current maximum annual taxable "wages" as
defined in section 3121 for any month, the tax to be deducted by
each employer other than a subordinate unit of a national
railway-labor-organization employer from the compensation paid by
him to the employee with respect to such month would be that
proportion of the tax with respect to such compensation paid by all
such employers which the compensation paid by him to the employee
for services rendered during such month bears to the total
compensation paid by all such employers to such employee for
services rendered during such month; and that in the event that the
compensation so paid by such employers to the employee for services
rendered during such month was less than an amount equal to
one-twelfth of the current maximum annual taxable "wages" as
defined in section 3121 for any month, each subordinate unit of a
national railway-labor-organization employer would deduct such
proportion of any additional tax as the compensation paid by such
employer to such employee for services rendered during such month
bears to the total compensation paid by all such employers to such
employee for services rendered during such month.
Subsec. (c)(2). Pub. L. 98-76, Sec. 225(c)(1)(B), (3), (5),
substituted "taxes imposed by section 3201" for "tax imposed by
section 3201", "the taxes under paragraph (1)" for "the tax under
paragraph (1)", and "exceed" for "exceeds".
Subsec. (c)(4). Pub. L. 98-76, Sec. 225(c)(1)(B), (4), (5),
substituted "taxes imposed by section 3201" for "tax imposed by
section 3201", "such taxes" for "such tax", and "exceed" for
"exceeds".
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1903(a)(7)(A), struck
out provisions relating to the September 30, 1973, qualification on
the applicability of provisions of this subsection and "of the
Internal Revenue Code of 1954" before "for any month" wherever
appearing.
Subsec. (b). Pub. L. 94-455, Sec. 1903(a)(7)(B), struck out
"made" after "to deduct the tax shall be".
Subsec. (c)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary".
1973 - Subsec. (a). Pub. L. 93-69, in second sentence reading "If
an employee . . .", substituted "1973" for "1965" wherever
appearing, struck out "(i) $450, or (ii)" before "an amount equal
to" in two places, and struck out ", whichever is greater," after
"Internal Revenue Code of 1954" in two places.
1966 - Subsec. (a). Pub. L. 89-700 substituted "after September
30, 1965" for "after the month in which this provision was amended
in 1959" in six places, and "(i) $450, or (ii) an amount equal to
one-twelfth of the current maximum annual taxable 'wages' as
defined in section 3121 of the Internal Revenue Code of 1954,
whichever is greater, for any month after September 30, 1965" for
"$400 for any calendar month before the calendar month next
following the month in which this provision was amended in 1963, or
$450 for any calendar month after the month in which this provision
was so amended and before the calendar month next following the
calendar month in which this provision was amended in 1965, or (i)
$450, or (ii) an amount equal to one-twelfth of the current maximum
annual taxable 'wages' as defined in section 3121 of the Internal
Revenue Code of 1954, whichever is greater, for any month after the
month in which this provision was so amended" in two places.
1965 - Subsec. (a). Pub. L. 89-212, Secs. 2(a)(1), 4, inserted
sentence permitting an employer who is furnished by an employee a
written statement of tips pursuant to section 6053(a) to which par.
(3) of section 3231(e) is applicable to deduct an amount equivalent
to such tax with respect to such tips from any compensation of the
employee under his control, even though at the time such statement
is furnished the total amount of the tips included in statements
furnished to the employer as having been received by the employee
in such calendar month in the course of his employment by such
employer is less than $20, and inserted "and before the calendar
month next following the calendar month in which this provision was
amended in 1965, or (i) $450, or (ii) an amount equal to
one-twelfth of the current maximum annual taxable 'wages' as
defined in section 3121, whichever is greater, for any month after
the month in which this provision was so amended" in two places.
Subsec. (c). Pub. L. 89-212, Sec. 2(a)(2), added subsec. (c).
1963 - Subsec. (a). Pub. L. 88-133 limited existing taxable
compensation base of $400 to any calendar month before Nov. 1963
and increased such base to $450 for any calendar month after Oct.
1963.
1959 - Subsec. (a). Pub. L. 86-28 substituted "after the month in
which this provision was amended in 1959" for "after 1954" and for
"after December 31, 1954" in five places, and "$400" for "$350" in
two places.
1954 - Subsec. (a). Act Aug. 31, 1954, substituted "$350" for
"$300" wherever appearing.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 applicable to coverage provided
after Dec. 31, 1990, see section 5124(c) of Pub. L. 101-508, set
out as a note under section 3102 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-76 applicable to remuneration paid after
Dec. 31, 1984, see section 227(a) of Pub. L. 98-76, set out as a
note under section 3201 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1903(a)(7) of Pub. L. 94-455 applicable with
respect to compensation paid for services rendered after Dec. 31,
1976, see section 1903(d) of Pub. L. 94-455, set out as a note
under section 3201 of this title.
EFFECTIVE DATE OF 1973 AMENDMENT
Amendment by Pub. L. 93-69 effective Oct. 1, 1973, and applicable
only with respect to compensation paid for services rendered on or
after Oct. 1, 1973; and applicable to railway labor organization
covered by a private supplemental pension plan as of Oct. 1, 1973,
and subject to a moratorium agreed to on or before Mar. 8, 1973,
for changes in pay rates, on the earlier of (1) date of expiration
of such moratorium, or (2) date as of which the railway labor
organization through collective bargaining agreement makes
amendment applicable, see section 109(b) of Pub. L. 93-69, set out
as a note under section 3201 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 2(a) of Pub. L. 89-212 effective only with
respect to tips received after 1965, and amendment by section 4 of
Pub. L. 89-212 effective only with respect to calendar months after
the month in which Pub. L. 89-212 is enacted, see section 6 of Pub.
L. 89-212, set out as a note under section 3201 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-28 effective, except as otherwise
provided, first day of calendar month next following May 1959, see
section 202 of Pub. L. 86-28, set out as a note under section 3201
of this title.
EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by act Aug. 31, 1954, effective as if enacted as a part
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], see
section 407 of act Aug. 31, 1954, as amended, set out as a note
under section 3201 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3402, 3505, 6053 of this
title.
-End-
-CITE-
26 USC Subchapter B - Tax on Employee Representatives 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter B - Tax on Employee Representatives
-HEAD-
SUBCHAPTER B - TAX ON EMPLOYEE REPRESENTATIVES
-MISC1-
Sec.
3211. Rate of tax.
3212. Determination of compensation.
-End-
-CITE-
26 USC Sec. 3211 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter B - Tax on Employee Representatives
-HEAD-
Sec. 3211. Rate of tax
-STATUTE-
(a) Tier 1 tax
In addition to other taxes, there is hereby imposed on the income
of each employee representative a tax equal to the applicable
percentage of the compensation received during any calendar year by
such employee representative for services rendered by such employee
representative. For purposes of the preceding sentence, the term
"applicable percentage" means the percentage equal to the sum of
the rates of tax in effect under subsections (a) and (b) of section
3101 and subsections (a) and (b) of section 3111 for the calendar
year.
(b) Tier 2 tax
(1) In general
In addition to other taxes, there is hereby imposed on the
income of each employee representative a tax equal to the
applicable percentage of the compensation received during any
calendar year by such employee representatives for services
rendered by such employee representative.
(2) Applicable percentage
For purposes of paragraph (1), the term "applicable percentage"
means -
(A) 14.75 percent in the case of compensation received during
2002,
(B) 14.20 percent in the case of compensation received during
2003, and
(C) in the case of compensation received during any calendar
year after 2003, the percentage determined under section 3241
for such calendar year.
(c) Cross reference
For application of different contribution bases with respect
to the taxes imposed by subsections (a) and (b), see section
3231(e)(2).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 432; Aug. 31, 1954, ch. 1164,
pt. II, Sec. 206(a), 68 Stat. 1040; Pub. L. 86-28, pt. II, Sec.
201(c), May 19, 1959, 73 Stat. 29; Pub. L. 88-133, title II, Sec.
201, Oct. 5, 1963, 77 Stat. 221; Pub. L. 89-97, title I, Secs.
105(b)(2), 111(c)(2), July 30, 1965, 79 Stat. 335, 342; Pub. L.
89-212, Secs. 4, 5(b), Sept. 29, 1965, 79 Stat. 861; Pub. L.
89-699, title III, Sec. 301 (b), (d), Oct. 30, 1966, 80 Stat. 1078;
Pub. L. 89-700, title III, Sec. 301(v), (vi), Oct. 30, 1966, 80
Stat. 1088, 1089; Pub. L. 91-215, Sec. 4, Mar. 17, 1970, 84 Stat.
70; Pub. L. 93-69, title I, Sec. 102(c), July 10, 1973, 87 Stat.
162; Pub. L. 94-93, title II, Sec. 202, Aug. 9, 1975, 89 Stat. 466;
Pub. L. 94-455, title XIX, Sec. 1903(a)(8), Oct. 4, 1976, 90 Stat.
1807; Pub. L. 97-34, title VII, Sec. 741(b), Aug. 13, 1981, 95
Stat. 347; Pub. L. 98-76, title II, Secs. 211(c), 223, Aug. 12,
1983, 97 Stat. 419, 421; Pub. L. 101-508, title V, Sec. 5125(b),
Nov. 5, 1990, 104 Stat. 1388-285; Pub. L. 107-90, title II, Secs.
203(a), 204(b), Dec. 21, 2001, 115 Stat. 891.)
-MISC1-
AMENDMENTS
2001 - Subsec. (a). Pub. L. 107-90, Sec. 204(b), added subsec.
(a) and struck out former subsec. (a), which related to imposition
of tier 1 and 2 taxes.
Subsec. (b). Pub. L. 107-90, Sec. 204(b), added subsec. (b).
Pub. L. 107-90, Sec. 203(a), struck out subsec. (b) which read as
follows: "In addition to other taxes, there is hereby imposed on
the income of each employee representative a tax at a rate equal to
the rate of excise tax imposed on every employer, provided for in
section 3221(c), for each man-hour for which compensation is paid
to him for services rendered as an employee representative."
Subsec. (c). Pub. L. 107-90, Sec. 204(b), added subsec. (c).
1990 - Subsec. (a). Pub. L. 101-508 substituted "applicable" for
"following" before "percentage of the" and provision defining the
term "applicable percentage" for provision specifying that in the
case of compensation received during 1985 the rate of tax was 14.10
percent, for 1986 or 1987 the rate was 14.30 percent, for 1988 or
1989 the rate was 15.02 percent, and for 1990 or thereafter the
rate was 15.30 percent.
1983 - Subsec. (a). Pub. L. 98-76, Sec. 223, substituted
provisions imposing a two tiered tax on each employee
representative equal to the percentage of the compensation received
during any calendar year by such employee representative for
services rendered as is set out in accompanying tables, for
provisions that had imposed on each employee representative a tax
equal to 12.75 percent plus the sum of the rates of tax imposed
with respect to wages by sections 3101(a), 3101(b), 3111(a), and
3111(b) of so much of the compensation paid in any calendar month
to such employee representative for services rendered by him as was
not in excess of an amount equal to one-twelfth of the current
maximum annual taxable "wage" as defined in section 3121 for any
month.
Pub. L. 98-76, Sec. 211(c), substituted "12.75 percent" for
"11.75 percent".
1981 - Subsec. (a). Pub. L. 97-34 substituted "11.75" for "9.5".
1976 - Subsec. (a). Pub. L. 94-455 substituted "3111(a), and
3111(b)" for "3111(a), 3111(b)", struck out "of the Internal
Revenue Code of 1954" before "of so much of the compensation",
"after September 30, 1973," after "rendered by him", "of the
Internal Revenue Code of 1954" after "as defined in section 3121",
and "after September 30, 1973" after "for any month".
1975 - Subsec. (a). Pub. L. 94-93 inserted "in any calendar
month" after "compensation paid".
1973 - Subsec. (a). Pub. L. 93-69 substituted new tax rate
provisions on income of employee representatives for services
rendered after Sept. 30, 1973, for former provisions which
prescribed 12 1/2 , 13, 14, 14 1/2 , and 15 percent on income for
services rendered after Sept. 30, 1965, Dec. 31, 1965, Dec. 31,
1966, Dec. 31, 1967, and Dec. 31, 1968, respectively, as is not in
excess of (i) $450, or (ii) an amount equal to one-twelfth of the
current maximum annual taxable "wages" as defined in section 3121
of the Internal Revenue Code of 1954, whichever is greater, for any
month after September 30, 1965: Provided, That the rate of tax
imposed by this section shall be increased, with respect to
compensation paid for services rendered after September 30, 1965,
by a number of percentage points (including fractional points)
equal at any given time to twice the number of percentage points
(including fractional points) by which the rate of the tax imposed
with respect to wages by section 3101(a) plus the rate imposed by
section 3101(b) at such time exceeds 2 3/4 percent (the rate
provided by paragraph (2) of section 3101 as amended by the Social
Security Amendments of 1956).
1970 - Subsec. (b). Pub. L. 91-215 substituted the rate of excise
tax imposed on every employer under section 3221(c) of this title
for a flat 2-cents per man hour tax as the rate for additional
taxes imposed on the income of employee representatives for each
man hour of compensation paid.
1966 - Pub. L. 89-700 substituted "rendered after September 30,
1965" for "rendered after December 31, 1964", and "(i) $450, or
(ii) an amount equal to one-twelfth of the current maximum annual
taxable 'wages' as defined in section 3121 of the Internal Revenue
Code of 1954, whichever is greater, for any month after September
30, 1965" for "$400 for any calendar month before the calendar
month next following the month in which this provision was amended
in 1963, or $450 for any calendar month after the month in which
this provision was so amended and before the calendar month next
following the calendar month in which this provision was amended in
1965, or (i) $450, or (ii) an amount equal to one-twelfth of the
current maximum annual taxable 'wages' as defined in section 3121
of the Internal Revenue Code of 1954, whichever is greater, for any
month after the month in which this provision was so amended".
Pub. L. 89-699, Sec. 301(b), (d), designated existing provisions
as subsec. (a), and substituted "14 percent" for "13 1/2 percent"
in subd. (3), "14 1/2 percent" for "14 percent" in subd. (4), and
"15 percent" for "14 1/2 percent" in subd. (5).
Subsec. (b). Pub. L. 89-699, Sec. 301(d), added subsec. (b).
1965 - Pub. L. 89-212 substituted pars. (1) to (5) for former
pars. (1) and (2) which imposed a tax equal to 13 1/2 percent of
so much of the compensation paid to such employee representative
for services rendered by him after the month in which this
provision was amended in 1959, and before Jan. 1, 1962, and 14 1/2
percent of so much of the compensation paid to such employee
representative for services rendered by him after Dec. 31, 1961,
and inserted "and before the calendar month next following the
calendar month in which this provision was amended in 1965, or (i)
$450, or (ii) an amount equal to one-twelfth of the current maximum
annual taxable 'wages' as defined in section 3121, whichever is
greater, for any month after the month in which this provision was
so amended".
Pub. L. 89-97 substituted "the rate of the tax imposed with
respect to wages by section 3101(a) at such time exceeds 2 3/4
percent (the rate provided by paragraph (2) of section 3101 as
amended by the Social Security Amendments of 1956)" for "the rate
of the tax imposed with respect to wages by section 3101 at such
time exceeds the rate provided by paragraph (2) of such section
3101 as amended by the Social Security Amendments of 1956" and
inserted "plus the rate imposed by section 3101(b)" after "section
3101(a)", respectively.
1963 - Pub. L. 88-133 limited the existing taxable compensation
base of $400 to any calendar month before Nov. 1963 and increased
such base to $450 for any calendar month after Oct. 1963.
1959 - Pub. L. 86-28 increased the tax from 12 1/2 percent of
the compensation not in excess of $350 for any calendar month to 13
1/2 percent of the compensation not in excess of $400 for any
calendar month for services rendered before Jan. 1, 1962, and to 14
1/2 percent for services rendered after Dec. 31, 1961, and
required an increase in the rate of tax with respect to
compensation paid for services rendered after December 31, 1964, by
a number of percentage points equal at any given time to twice the
number of percentage points by which the rate of tax imposed by
section 3101 of this title at such time exceeds the rate provided
by par. (2) of such section 3101 as amended by the Social Security
Amendments of 1956.
1954 - Act Aug. 31, 1954, substituted "$350" for "$300".
EFFECTIVE DATE OF 2001 AMENDMENT
Pub. L. 107-90, title II, Sec. 203(c), Dec. 21, 2001, 115 Stat.
891, provided that: "The amendments made by this section [amending
this section and section 3221 of this title] shall apply to
calendar years beginning after December 31, 2001."
Amendment by section 204(b) of Pub. L. 107-90 applicable to
calendar years beginning after Dec. 31, 2001, see section 204(f) of
Pub. L. 107-90, set out as an Effective and Termination Dates of
2001 Amendments note under section 24 of this title.
EFFECTIVE AND TERMINATION DATES OF 1983 AMENDMENT
Amendment by section 211(c) of Pub. L. 98-76 applicable to
compensation paid for services rendered after Dec. 31, 1983, and
before Jan. 1, 1985, see section 212 of Pub. L. 98-76, set out as a
note under section 3201 of this title.
Amendment by section 223 of Pub. L. 98-76 applicable to
remuneration paid after Dec. 31, 1984, see section 227(a) of Pub.
L. 98-76, set out as a note under section 3201 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to compensation paid for
services rendered after Sept. 30, 1981, see section 741(e) of Pub.
L. 97-34, set out as a note under section 3201 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 applicable with respect to
compensation paid for services rendered after Dec. 31, 1976, see
section 1903(d) of Pub. L. 94-455, set out as a note under section
3101 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-93 applicable for taxable years ending on
or after Aug. 9, 1975, and for taxable years ending before Aug. 9,
1975, as to which the period for assessment and collection of tax
or the filing of a claim for credit or refund has not expired on
Aug. 9, 1975, see section 207 of Pub. L. 94-93, set out as a note
under section 3201 of this title.
EFFECTIVE DATE OF 1973 AMENDMENT
Amendment by Pub. L. 93-69 effective Oct. 1, 1973, and applicable
only with respect to compensation paid for services rendered on or
after Oct. 1, 1972; and applicable to railway labor organization
covered by private supplemental pension plan as of Oct. 1, 1973,
and subject to a moratorium, agreed to on or before Mar. 8, 1973,
for changes in pay rates, on the earlier of (1) date of expiration
of such moratorium, or (2) date as of which the railway labor
organization through collective bargaining agreement makes
amendment applicable, see section 109(b) of Pub. L. 93-69, set out
as a note under section 3201 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Section 301(f) of Pub. L. 89-699, as amended by section 8 of Pub.
L. 91-215, provided that: "The amendments made by subsections (d)
and (e) of this section [amending this section and section 3221 of
this title] shall be effective with respect to man-hours, beginning
with the first month following enactment of this Act [Oct. 30,
1966], for which compensation is paid."
EFFECTIVE DATE OF 1965 AMENDMENTS
Amendment by section 4 of Pub. L. 89-212 effective only with
respect to calendar months after month in which Pub. L. 89-212 is
enacted [September 1965], and amendment by section 5(b) of Pub. L.
89-212 effective only with respect to compensation paid for
services rendered after Sept. 30, 1965, see section 6 of Pub. L.
89-212, set out as a note under section 3201 of this title.
Amendment by section 105(b)(2) of Pub. L. 89-97 effective with
respect to compensation paid for services rendered after Dec. 31,
1965, see section 105(b)(4) of Pub. L. 89-97, set out as a note
under section 3201 of this title.
Amendment by section 111(c)(2) of Pub. L. 89-97 applicable to
calendar year 1966 or to any subsequent calendar year but only if
by October 1 immediately preceding such calendar year the Railroad
Retirement Tax Act provides for a maximum amount of monthly
compensation taxable under such Act during all months of such
calendar year equal to one-twelfth of maximum wages which Federal
Insurance Contributions Act provides may be counted for such
calendar year, see section 111(e) of Pub. L. 89-97, set out as an
Effective Date note under section 1395i-1 of Title 42, The Public
Health and Welfare.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-28 effective, except as otherwise
provided, first day of calendar month next following May 1959, see
section 202 of Pub. L. 86-28, set out as a note under section 3201
of this title.
EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by act Aug. 31, 1954, effective as if enacted as a part
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], see
section 407 of act Aug. 31, 1954, as amended, set out as a note
under section 3201 of this title.
SEPARABILITY
Section 9 of Pub. L. 91-215 provided that: "If any provision of
this Act [amending this section, section 3221 of this title, and
sections 228c and 228o of Title 45, Railroads, enacting provisions
set out as notes under section 3221 of this title and sections 228c
and 228o of Title 45, and amending provisions set out as notes
under this section] or the application thereof to any person or
circumstances is held invalid, the remainder of this Act, and the
application of such provisions to other persons or circumstances,
shall not be affected thereby."
PENALTIES AND INTEREST NOT ASSESSED FOR FAILURE TO MAKE TIMELY
PAYMENT DURING PERIOD JANUARY 1, 1982, TO JUNE 30, 1982, OF TAXES
ATTRIBUTABLE TO AMENDMENTS BY PUB. L. 97-123
For provision that no penalties or interest shall be assessed on
account of any failure to make timely payment of taxes imposed by
this section with respect to payments made for the period Jan. 1,
1982, and ending June 30, 1982, to the extent that such taxes are
attributable to section 3 of Pub. L. 97-123 or the amendments made
by that section, see section 3(f) of Pub. L. 97-123, set out as a
note under section 3101 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 72, 275, 1402, 3231,
3241, 3502, 6051 of this title; title 45 sections 231, 231e,
231f-1, 231n-1.
-End-
-CITE-
26 USC Sec. 3212 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter B - Tax on Employee Representatives
-HEAD-
Sec. 3212. Determination of compensation
-STATUTE-
The compensation of an employee representative for the purpose of
ascertaining the tax thereon shall be determined in the same manner
and with the same effect as if the employee organization by which
such employee representative is employed were an employer as
defined in section 3231(a).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 432.)
-End-
-CITE-
26 USC Subchapter C - Tax on Employers 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter C - Tax on Employers
-HEAD-
SUBCHAPTER C - TAX ON EMPLOYERS
-MISC1-
Sec.
3221. Rate of tax.
-End-
-CITE-
26 USC Sec. 3221 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter C - Tax on Employers
-HEAD-
Sec. 3221. Rate of tax
-STATUTE-
(a) Tier 1 tax
In addition to other taxes, there is hereby imposed on every
employer an excise tax, with respect to having individuals in his
employ, equal to the applicable percentage of compensation paid
during any calendar year by such employer for services rendered to
such employer. For purposes of the preceding sentence, the term
"applicable percentage" means the percentage equal to the sum of
the rates of tax in effect under subsections (a) and (b) of section
3111 for the calendar year.
(b) Tier 2 tax
(1) In general
In addition to other taxes, there is hereby imposed on every
employer an excise tax, with respect to having individuals in his
employ, equal to the applicable percentage of the compensation
paid during any calendar year by such employer for services
rendered to such employer.
(2) Applicable percentage
For purposes of paragraph (1), the term "applicable percentage"
means -
(A) 15.6 percent in the case of compensation paid during
2002,
(B) 14.2 percent in the case of compensation paid during
2003, and
(C) in the case of compensation paid during any calendar year
after 2003, the percentage determined under section 3241 for
such calendar year.
(c) Cross reference
For application of different contribution bases with respect
to the taxes imposed by subsections (a) and (b), see section
3231(e)(2).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 433; Aug. 31, 1954, ch. 1164,
pt. II, Sec. 206(a), 68 Stat. 1040; Pub. L. 86-28, pt. II, Sec.
201(d), May 19, 1959, 73 Stat. 29; Pub. L. 88-133, title II, Sec.
202, Oct. 5, 1963, 77 Stat. 221; Pub. L. 89-97, title I, Secs.
105(b)(3), 111(c)(3), July 30, 1965, 79 Stat. 335, 342; Pub. L.
89-212, Secs. 4, 5(c), Sept. 29, 1965, 79 Stat. 861, 862; Pub. L.
89-699, title III, Sec. 301(c), (e), Oct. 30, 1966, 80 Stat. 1078;
Pub. L. 89-700, title III, Secs. 301(iii), (v), (vi), 302, Oct. 30,
1966, 80 Stat. 1088, 1089; Pub. L. 91-215, Sec. 5(a), (b)(1), Mar.
17, 1970, 84 Stat. 71; Pub. L. 93-69, title I, Sec. 102(d)-(f),
July 10, 1973, 87 Stat. 162, 163; Pub. L. 93-445, title V, Sec.
501, Oct. 16, 1974, 88 Stat. 1359; Pub. L. 94-93, title II, Sec.
203, Aug. 9, 1975, 89 Stat. 466; Pub. L. 94-455, title XIX, Secs.
1903(a)(9), 1906(b)(13)(G), Oct. 4, 1976, 90 Stat. 1808, 1835; Pub.
L. 97-34, title VII, Sec. 741(c), Aug. 13, 1981, 95 Stat. 347; Pub.
L. 98-76, title II, Secs. 211(b), 222, Aug. 12, 1983, 97 Stat. 419,
420; Pub. L. 100-203, title IX, Sec. 9032(a), Dec. 22, 1987, 101
Stat. 1330-296; Pub. L. 101-508, title V, Sec. 5125(c), Nov. 5,
1990, 104 Stat. 1388-286; Pub. L. 107-90, title II, Secs. 203(b),
204(a), Dec. 21, 2001, 115 Stat. 891.)
-MISC1-
AMENDMENTS
2001 - Subsec. (b). Pub. L. 107-90, Sec. 204(a), amended heading
and text of subsec. (b) generally. Prior to amendment, text read as
follows: "In addition to other taxes, there is hereby imposed on
every employer an excise tax, with respect to having individuals in
his employ, equal to 16.10 percent of the compensation paid during
any calendar year by such employer for services rendered to such
employer."
Subsecs. (c) to (e). Pub. L. 107-90, Sec. 203(b), redesignated
subsec. (e) as (c) and struck out former subsecs. (c) and (d) which
provided, in subsec. (c), for imposition of excise tax on every
employer, with respect to having individuals in his employ, for
each man-hour for which compensation was paid by such employer for
services rendered to him during any calendar quarter, and for
credit against such tax of amount equivalent in each month to the
aggregate amount of reductions in supplemental annuities accruing
in such month to employees of such employer, and, in subsec. (d),
that such tax would not apply to an employer with respect to
employees covered by a supplemental pension plan which is
established pursuant to an agreement reached through collective
bargaining between the employer and employees.
1990 - Subsec. (a). Pub. L. 101-508 substituted "applicable" for
"following" before "percentage of" and provision defining
"applicable percentage" for provision specifying the tax rate to be
7.05 percent, 7.15 percent, 7.51 percent, and 7.65 percent in the
case of compensation paid during 1985, 1986 or 1987, 1988 or 1989,
or 1990 or thereafter, respectively.
1987 - Subsec. (b). Pub. L. 100-203 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: "In
addition to other taxes, there is hereby imposed on every employer
an excise tax, with respect to having individuals in his employ,
equal to the following percentage of compensation paid during any
calendar year by such employer for services rendered to such
employer:
"In the case of compensation
paid during: The rate shall
be:
1985 13.75
1986 or thereafter 14.75."
1983 - Subsec. (a). Pub. L. 98-76, Sec. 222(a), in amending
subsec. (a) generally, substituted provisions imposing an excise
tax on employers, with respect to having individuals in his employ,
equal to a percentage of compensation paid as set out in an
accompanying table, for provisions which imposed an excise tax on
employers, with respect to having individuals in his employ, equal
to 12.75 percent of so much of the compensation paid in any
calendar month by such employer for services rendered to him as was
not in excess of an amount equal to one-twelfth of the current
maximum annual taxable "wages" as defined in section 3121 for any
month, with certain exceptions dealing with multiple employers.
Pub. L. 98-76, Sec. 211(b), substituted "12.75 percent" for
"11.75 percent".
Subsec. (b). Pub. L. 98-76, Sec. 222(a), in amending subsec. (b)
generally, substituted provisions imposing a second tier excise tax
on employers equal to a percentage of compensation paid as set out
in an accompanying table, for provisions that the rate of tax
imposed by former subsec. (a) would be increased by the rate of tax
imposed with respect to wages by section 3111(a) plus the rate
imposed by section 3111(b).
Subsec. (e). Pub. L. 98-76, Sec. 222(b), added subsec. (e).
1981 - Subsec. (a). Pub. L. 97-34 substituted in first sentence
"11.75" for "9.5".
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1903(a)(9)(A),
1906(b)(13)(G), struck out provisions relating to the September 30,
1973 qualification on the applicability of provisions of this
subsection, "of the Internal Revenue Code of 1954" after "as
defined in section 3121" wherever appearing, and "of the Treasury"
after "to the Secretary".
Subsec. (b). Pub. L. 94-455, Sec. 1903(a)(9)(B), struck out ",
with respect to compensation paid for services rendered after
September 30, 1973," after "shall be increased", "of the Internal
Revenue Code of 1954" after "by section 3111(a)" and "of such Code"
after "by section 3111(b)".
Subsec. (c). Pub. L. 94-455, Secs. 1903(a)(9)(C), 1906(b)(13)(G),
struck out "(1) at the rate of two cents for the period beginning
November 1, 1966, and ending March 31, 1970, and (2) commencing
April 1, 1970," after "during any calendar quarter," , "commencing
with the quarter beginning April 1, 1970" after "required for each
calendar quarter", "of the Treasury" after "representatives, and
the Secretary" and "of the Treasury" after "shall certify to the
Secretary".
1975 - Subsec. (a). Pub. L. 94-93 substituted "compensation paid
in any calendar month by such employer" for "compensation paid by
such employer".
1974 - Subsec. (c). Pub. L. 93-445, Sec. 501(a), struck out "for
appropriation to the Railroad Retirement Supplemental Account
provided for in section 15(b) of the Railroad Retirement Act of
1937" after "commencing April 1, 1970, at such rate as will make
available", substituted "at the level provided under section 3(j)
of the Railroad Retirement Act of 1937 as in effect on December 31,
1974" for "under section 3(j) of such Act", and inserted "or
section 2(h)(2) of the Railroad Retirement Act of 1974" after
"section 3(j)(2) of the Railroad Retirement Act of 1937".
Subsec. (d). Pub. L. 93-445, Sec. 501(b), substituted "section
2(b) of the Railroad Retirement Act of 1974" for "section 3(j) of
the Railroad Retirement Act of 1937" and "section 2(b) of such Act"
for "section 3(j) of such Act".
1973 - Subsec. (a). Pub. L. 93-69, Sec. 102(d), (e), substituted
new tax rate provisions on employers for services rendered after
Sept. 30, 1973, for former provisions which prescribed 6 1/4 , 6
1/2 , 7, 7 1/4 , and 7 1/2 percent on income for services rendered
after Sept. 30, 1965; Dec. 31, 1965; Dec. 31, 1966; Dec. 31, 1967;
and Dec. 31, 1968, respectively, as is, with respect to any
employee for any calendar month, not in excess of (i) $450, or (ii)
an amount equal to one-twelfth of the current maximum annual
taxable "wages" as defined in section 3121 of the Internal Revenue
Code of 1954, whichever is greater, for any month after Sept. 30,
1965, and, in first sentence, substituted "1973" for "1965"
wherever appearing, struck out "(i) $450, or (ii)" before "an
amount equal to" in two places, and struck out ", whichever is
greater," after "Internal Revenue Code of 1954" in two places,
respectively.
Subsec. (b). Pub. L. 93-69, Sec. 102(f), substituted "1973" for
"1965" and "by the rate of tax imposed with respect to wages by
section 3111(a) of the Internal Revenue Code of 1954 plus the rate
imposed by section 3111(b) of such Code", for "by a number of
percentage points (including fractional points) equal at any given
time to the number of percentage points (including fractional
points) by which the rate of the tax imposed with respect to wages
by section 3111(a) plus the rate imposed by section 3111(b) at such
time exceeds 2 3/4 percent (the rate provided by paragraph (2) of
section 3111 as amended by the Social Security Amendments of
1956)".
1970 - Subsec. (c). Pub. L. 91-215, Sec. 5(a), provided a
variable standard of taxation on employers for services rendered
them during any calendar quarter at the existing 2 cent rate for
each man-hour of services for the period from Nov. 1, 1966 to Mar.
31, 1970, and thereafter at such rates as will permit supplemental
annuity payments under section 228c(j) of this title, and
authorized the Railroad Retirement Board to make the necessary
determination of rates, and made it its duty to publish notice of
such determinations in the Federal Register.
Subsec. (d). Pub. L. 91-215, Sec. 5(b)(1), added subsec. (d).
1966 - Subsec. (a). Pub. L. 89-700, Secs. 301(iii), (v), 302,
substituted "after September 30, 1965" for "after the month in
which this provision was amended in 1959" in six places, and "(i)
$450, or (ii) an amount equal to one-twelfth of the current maximum
annual taxable 'wages' as defined in section 3121 of the Internal
Revenue Code of 1954, whichever is greater, for any month after
September 30, 1965" for "400 for any calendar month before the
calendar month next following the month in which this provision was
amended in 1963, or $450 for any calendar month after the month in
which this provision was so amended and before the calendar month
next following the calendar month in which this provision was
amended in 1965, or (i) $450, or (ii) an amount equal to
one-twelfth of the current maximum annual taxable 'wages' as
defined in section 3121 of the Internal Revenue Code of 1954,
whichever is greater, for any month after the month in which this
provision was so amended" in four places, and inserted sentence
providing that where compensation for services rendered in a month
is paid by two or more employers, one of the employers may, by
notice to the Secretary, and by agreement with the other employer,
elect for the tax imposed by section 3201 and this section to apply
to all of the compensation paid by such employer for such month as
does not exceed the maximum amount of compensation in respect to
which taxes are imposed by section 3201 and this section; and in
such a case the liability of the other employer shall be limited to
the difference, if any, between the compensation paid by the
electing employer and the maximum amount of compensation to which
section 3201 and this section apply.
Pub. L. 89-699, Sec. 301(c), substituted "7 percent" for "6 3/4
percent" in subd. (3), "7 1/4 percent" for "7 percent" in subd.
(4), and "7 1/2 percent" for "7 1/4 percent" in subd. (5).
Subsec. (b). Pub. L. 89-700, Sec. 301(vi), substituted "after
September 30, 1965" for "after December 31, 1964".
Subsec. (c). Pub. L. 89-699 added subsec. (c).
1965 - Subsec. (a). Pub. L. 89-212 substituted pars. (1) to (5)
for former pars. (1) and (2) which imposed an excise tax equal to 6
3/4 percent of so much of the compensation paid by such employer
for services rendered to him after the month in which this
provision was amended in 1959, and before Jan. 1, 1962, and 7 1/4
percent of so much of the compensation paid by such employer for
services rendered to him after Dec. 31, 1961, and inserted "and
before the calendar month next following the calendar month in
which this provision was amended in 1965, or (i) $450, or (ii) an
amount equal to one-twelfth of the current maximum annual taxable
'wages' as defined in section 3121, whichever is greater, for any
month after the month in which this provision was so amended"
wherever appearing.
Subsec. (b). Pub. L. 89-97 substituted "the rate of the tax
imposed with respect to wages by section 3111(a) at such time
exceeds 2 3/4 percent (the rate provided by paragraph (2) of
section 3111 as amended by the Social Security Amendments of 1956)"
for "the rate of the tax imposed with respect to wages by section
3111 at such time exceeds the rate provided by paragraph (2) of
such section 3111 as amended by the Social Security Amendments of
1956" and inserted "plus the rate imposed by section 3111(b)" after
"section 3111(a)", respectively.
1963 - Subsec. (a). Pub. L. 88-133 limited the existing taxable
compensation base of $400 to any calendar month before Nov. 1963
and increased such base to $450 for any calendar month after Oct.
1963.
1959 - Subsec. (a). Pub. L. 86-28, Sec. 201(d)(1), (2)(A), (B),
designated former provisions of section as subsec. (a), increased
the tax from 6 1/4 percent of the compensation not in excess of
$350 for any calendar month to 6 3/4 percent of the compensation
not in excess of $400 for any calendar month for services rendered
before Jan. 1, 1962, and to 7 1/4 percent for services rendered
after Dec. 31, 1961, and substituted "after the month in which this
provision was amended in 1959" for "after 1954" and for "after
December 31, 1954" in six places, "not more than $400" for "not
more than $350", and "less than $400" for "less than $350".
Subsec. (b). Pub. L. 86-28, Sec. 201(d)(2)(C), added subsec. (b).
1954 - Act Aug. 31, 1954, substituted "$350" for "$300" wherever
appearing.
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by section 203(b) of Pub. L. 107-90 applicable to
calendar years beginning after Dec. 31, 2001, see section 203(c) of
Pub. L. 107-90, set out as a note under section 3211 of this title.
Amendment by section 204(a) of Pub. L. 107-90 applicable to
calendar years beginning after Dec. 31, 2001, see section 204(f) of
Pub. L. 107-90, set out as an Effective and Termination Dates of
2001 Amendments note under section 24 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Section 9032(b) of Pub. L. 100-203 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to compensation paid after December 31, 1987."
EFFECTIVE AND TERMINATION DATES OF 1983 AMENDMENT
Amendment by section 211(b) of Pub. L. 98-76 applicable to
compensation paid for services rendered after Dec. 31, 1983, and
before Jan. 1, 1985, see section 212 of Pub. L. 98-76, set out as a
note under section 3201 of this title.
Amendment by section 222 of Pub. L. 98-76 applicable to
remuneration paid after Dec. 31, 1984, see section 227(a) of Pub.
L. 98-76, set out as a note under section 3201 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to compensation paid for
services rendered after Sept. 30, 1981, see section 741(e) of Pub.
L. 97-34, set out as a note under section 3201 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1903(a)(9) of Pub. L. 94-455 applicable with
respect to compensation paid for services rendered after Dec. 31,
1976, see section 1903(d) of Pub. L. 94-455, set out as a note
under section 3101 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-93 applicable for taxable years ending on
or after Aug. 9, 1975, and for taxable years ending before Aug. 9,
1975, as to which the period for assessment and collection of tax
or the filing of a claim for credit or refund has not expired on
Aug. 9, 1975, see section 207 of Pub. L. 94-93, set out as a note
under section 3201 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Section 604 of Pub. L. 93-445 provided that: "The amendments made
by the provisions of title V of this Act [amending this section and
section 6413 of this title] shall become effective on January 1,
1975, and shall apply only with respect to compensation paid for
services rendered on or after that date."
EFFECTIVE DATE OF 1973 AMENDMENT
Amendment by Pub. L. 93-69 effective Oct. 1, 1973, and applicable
only with respect to compensation paid for services rendered on or
after Oct. 1, 1973; and applicable to railway labor organization
covered by a private supplemental pension plan as of Oct. 1, 1973,
and subject to a moratorium, agreed to on or before Mar. 8, 1973,
for changes in pay rates, on the earlier of (1) date of expiration
of such moratorium, or (2) date as of which the railway labor
organization through collective bargaining agreement makes
amendment applicable, see section 109(b) of Pub. L. 93-69, set out
as a note under section 3201 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-699 effective with respect to man-hours,
beginning with first month following Oct. 30, 1966, for which
compensation is paid, see section 301(f) of Pub. L. 89-699, set out
as a note under section 3211 of this title.
EFFECTIVE DATE OF 1965 AMENDMENTS
Amendment by section 4 of Pub. L. 89-212 effective only with
respect to calendar months after the month in which Pub. L. 89-212
is enacted [September 1965], and amendment by section 5(c) of Pub.
L. 89-212 effective only with respect to compensation paid for
services rendered after Sept. 30, 1965, see section 6 of Pub. L.
89-212, set out as a note under section 3201 of this title.
Amendment by section 105(b)(3) of Pub. L. 89-97 effective with
respect to compensation paid for services rendered after Dec. 31,
1965, see section 105(b)(4) of Pub. L. 89-97, set out as a note
under section 3201 of this title.
Amendment by section 111(c)(3) of Pub. L. 89-97 applicable to
calendar year 1966 or to any subsequent calendar year but only if
by October 1 immediately preceding such calendar year the Railroad
Retirement Tax Act provides for a maximum amount of monthly
compensation taxable under such Act during all months of such
calendar year equal to one-twelfth of maximum wages which Federal
Insurance Contributions Act provides may be counted for such
calendar year, see section 111(e) of Pub. L. 89-97, set out as an
Effective Date note under section 1395i-1 of Title 42, The Public
Health and Welfare.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-28 effective, except as otherwise
provided, first day of calendar month next following May 1959, see
section 202 of Pub. L. 86-28, set out as a note under section 3201
of this title.
EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by act Aug. 31, 1954, effective as if enacted as a part
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], see
section 407 of act Aug. 31, 1954, as amended, set out as a note
under section 3201 of this title.
PENALTIES AND INTEREST NOT ASSESSED FOR FAILURE TO MAKE TIMELY
PAYMENT DURING PERIOD JANUARY 1, 1982, TO JUNE 30, 1982, OF TAXES
ATTRIBUTABLE TO AMENDMENTS BY PUB. L. 97-123
For provision that no penalties or interest shall be assessed on
account of any failure to make timely payment of taxes imposed by
subsec. (b) of this section with respect to payments made for the
period Jan. 1, 1982, and ending June 30, 1982, to the extent that
such taxes are attributable to section 3 of Pub. L. 97-123 or the
amendments made by that section, see section 3(f) of Pub. L.
97-123, set out as a note under section 3101 of this title.
EXCISE TAXES ON EMPLOYERS; EMPLOYEES COVERED BY CERTAIN
SUPPLEMENTAL PENSION PLANS
Section 5(b)(2) of Pub. L. 91-215 provided that: "The amendment
made by paragraph (1) [amending this section] shall apply to (A)
supplemental annuities paid on or after April 1, 1970, and (B)
man-hours with respect to which compensation is paid for services
rendered to such employer on or after such day."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 72, 3231, 3241, 6205,
6413 of this title; title 45 sections 231f-1, 231n-1; title 49
section 24104.
-End-
-CITE-
26 USC Subchapter D - General Provisions 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter D - General Provisions
-HEAD-
SUBCHAPTER D - GENERAL PROVISIONS
-MISC1-
Sec.
3231. Definitions.
3232. Court jurisdiction.
3233. Short title.
-End-
-CITE-
26 USC Sec. 3231 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter D - General Provisions
-HEAD-
Sec. 3231. Definitions
-STATUTE-
(a) Employer
For purposes of this chapter, the term "employer" means any
carrier (as defined in subsection (g)), and any company which is
directly or indirectly owned or controlled by one or more such
carriers or under common control therewith, and which operates any
equipment or facility or performs any service (except trucking
service, casual service, and the casual operation of equipment or
facilities) in connection with the transportation of passengers or
property by railroad, or the receipt, delivery, elevation, transfer
in transit, refrigeration or icing, storage, or handling of
property transported by railroad, and any receiver, trustee, or
other individual or body, judicial or otherwise, when in the
possession of the property or operating all or any part of the
business of any such employer; except that the term "employer"
shall not include any street, interurban, or suburban electric
railway, unless such railway is operating as a part of a general
steam-railroad system of transportation, but shall not exclude any
part of the general steam-railroad system of transportation now or
hereafter operated by any other motive power. The Surface
Transportation Board is hereby authorized and directed upon request
of the Secretary, or upon complaint of any party interested, to
determine after hearing whether any line operated by electric power
falls within the terms of this exception. The term "employer" shall
also include railroad associations, traffic associations, tariff
bureaus, demurrage bureaus, weighing and inspection bureaus,
collection agencies and other associations, bureaus, agencies, or
organizations controlled and maintained wholly or principally by
two or more employers as hereinbefore defined and engaged in the
performance of services in connection with or incidental to
railroad transportation; and railway labor organizations, national
in scope, which have been or may be organized in accordance with
the provisions of the Railway Labor Act, as amended (45 U.S.C.,
chapter 8), and their State and National legislative committees and
their general committees and their insurance departments and their
local lodges and divisions, established pursuant to the
constitutions and bylaws of such organizations. The term "employer"
shall not include any company by reason of its being engaged in the
mining of coal, the supplying of coal to an employer where delivery
is not beyond the mine tipple, and the operation of equipment or
facilities therefor, or in any of such activities.
(b) Employee
For purposes of this chapter, the term "employee" means any
individual in the service of one or more employers for
compensation; except that the term "employee" shall include an
employee of a local lodge or division defined as an employer in
subsection (a) only if he was in the service of or in the
employment relation to a carrier on or after August 29, 1935. An
individual shall be deemed to have been in the employment relation
to a carrier on August 29, 1935, if -
(1) he was on that date on leave of absence from his
employment, expressly granted to him by the carrier by whom he
was employed, or by a duly authorized representative of such
carrier, and the grant of such leave of absence was established
to the satisfaction of the Railroad Retirement Board before July
1947; or
(2) he was in the service of a carrier after August 29, 1935,
and before January 1946 in each of 6 calendar months, whether or
not consecutive; or
(3) before August 29, 1935, he did not retire and was not
retired or discharged from the service of the last carrier by
whom he was employed or its corporate or operating successor, but
-
(A) solely by reason of his physical or mental disability he
ceased before August 29, 1935, to be in the service of such
carrier and thereafter remained continuously disabled until he
attained age 65 or until August 1945, or
(B) solely for such last stated reason a carrier by whom he
was employed before August 29, 1935, or a carrier who is its
successor did not on or after August 29, 1935, and before
August 1945 call him to return to service, or
(C) if he was so called he was solely for such reason unable
to render service in 6 calendar months as provided in paragraph
(2); or
(4) he was on August 29, 1935, absent from the service of a
carrier by reason of a discharge which, within 1 year after the
effective date thereof, was protested, to an appropriate labor
representative or to the carrier, as wrongful, and which was
followed within 10 years of the effective date thereof by his
reinstatement in good faith to his former service with all his
seniority rights;
except that an individual shall not be deemed to have been on
August 29, 1935, in the employment relation to a carrier if before
that date he was granted a pension or gratuity on the basis of
which a pension was awarded to him pursuant to section 6 of the
Railroad Retirement Act of 1937 (45 U.S.C. 228f), or if during the
last payroll period before August 29, 1935, in which he rendered
service to a carrier he was not in the service of an employer, in
accordance with subsection (d), with respect to any service in such
payroll period, or if he could have been in the employment relation
to an employer only by reason of his having been, either before or
after August 29, 1935, in the service of a local lodge or division
defined as an employer in subsection (a). The term "employee"
includes an officer of an employer. The term "employee" shall not
include any individual while such individual is engaged in the
physical operations consisting of the mining of coal, the
preparation of coal, the handling (other than movement by rail with
standard railroad locomotives) of coal not beyond the mine tipple,
or the loading of coal at the tipple.
(c) Employee representative
For purposes of this chapter, the term "employee representative"
means any officer or official representative of a railway labor
organization other than a labor organization included in the term
"employer" as defined in subsection (a), who before or after June
29, 1937, was in the service of an employer as defined in
subsection (a) and who is duly authorized and designated to
represent employees in accordance with the Railway Labor Act (45
U.S.C., chapter 8), as amended, and any individual who is regularly
assigned to or regularly employed by such officer or official
representative in connection with the duties of his office.
(d) Service
For purposes of this chapter, an individual is in the service of
an employer whether his service is rendered within or without the
United States, if -
(1) he is subject to the continuing authority of the employer
to supervise and direct the manner of rendition of his service,
or he is rendering professional or technical services and is
integrated into the staff of the employer, or he is rendering, on
the property used in the employer's operations, other personal
services the rendition of which is integrated into the employer's
operations, and
(2) he renders such service for compensation;
except that an individual shall be deemed to be in the service of
an employer, other than a local lodge or division or a general
committee of a railway-labor-organization employer, not conducting
the principal part of its business in the United States, only when
he is rendering service to it in the United States; and an
individual shall be deemed to be in the service of such a local
lodge or division only if -
(3) all, or substantially all, the individuals constituting its
membership are employees of an employer conducting the principal
part of its business in the United States; or
(4) the headquarters of such local lodge or division is located
in the United States;
and an individual shall be deemed to be in the service of such a
general committee only if -
(5) he is representing a local lodge or division described in
paragraph (3) or (4) immediately above; or
(6) all, or substantially all, the individuals represented by
it are employees of an employer conducting the principal part of
its business in the United States; or
(7) he acts in the capacity of a general chairman or an
assistant general chairman of a general committee which
represents individuals rendering service in the United States to
an employer, but in such case if his office or headquarters is
not located in the United States and the individuals represented
by such general committee are employees of an employer not
conducting the principal part of its business in the United
States, only such proportion of the remuneration for such service
shall be regarded as compensation as the proportion which the
mileage in the United States under the jurisdiction of such
general committee bears to the total mileage under its
jurisdiction, unless such mileage formula is inapplicable, in
which case such other formula as the Railroad Retirement Board
may have prescribed pursuant to section 1(c) of the Railroad
Retirement Act of 1937 (45 U.S.C. 228a) shall be applicable, and
if the application of such mileage formula, or such other formula
as the Board may prescribe, would result in the compensation of
the individual being less than 10 percent of his remuneration for
such service, no part of such remuneration shall be regarded as
compensation;
Provided however, That an individual not a citizen or resident of
the United States shall not be deemed to be in the service of an
employer when rendering service outside the United States to an
employer who is required under the laws applicable in the place
where the service is rendered to employ therein, in whole or in
part, citizens or residents thereof; and the laws applicable on
August 29, 1935, in the place where the service is rendered shall
be deemed to have been applicable there at all times prior to that
date.
(e) Compensation
For purposes of this chapter -
(1) The term "compensation" means any form of money
remuneration paid to an individual for services rendered as an
employee to one or more employers. Such term does not include (i)
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 sickness or
accident disability or medical or hospitalization expenses in
connection with sickness or accident disability or death, except
that this clause does not apply to a payment for group-term life
insurance to the extent that such payment is includible in the
gross income of the employee, (ii) tips (except as is provided
under paragraph (3)), (iii) an amount paid specifically - either
as an advance, as reimbursement or allowance - for traveling or
other bona fide and necessary expenses incurred or reasonably
expected to be incurred in the business of the employer provided
any such payment is identified by the employer either by a
separate payment or by specifically indicating the separate
amounts where both wages and expense reimbursement or allowance
are combined in a single payment, or (iv) any remuneration which
would not (if chapter 21 applied to such remuneration) be treated
as wages (as defined in section 3121(a)) by reason of section
3121(a)(5). Such term does not include remuneration for service
which is performed by a nonresident alien individual for the
period he is temporarily present in the United States as a
nonimmigrant under subparagraph (F), (J), (M), or (Q) of section
101(a)(15) of the Immigration and Nationality Act, as amended,
and which is performed to carry out the purpose specified in
subparagraph (F), (J), (M), or (Q), as the case may be. For the
purpose of determining the amount of taxes under sections 3201
and 3221, compensation earned in the service of a local lodge or
division of a railway-labor-organization employer shall be
disregarded with respect to any calendar month if the amount
thereof is less than $25. Compensation for service as a delegate
to a national or international convention of a railway labor
organization defined as an "employer" in subsection (a) of this
section shall be disregarded for purposes of determining the
amount of taxes due pursuant to this chapter if the individual
rendering such service has not previously rendered service, other
than as such a delegate, which may be included in his "years of
service" for purposes of the Railroad Retirement Act. Nothing in
the regulations prescribed for purposes of chapter 24 (relating
to wage withholding) which provides an exclusion from "wages" as
used in such chapter shall be construed to require a similar
exclusion from "compensation" in regulations prescribed for
purposes of this chapter.
(2) Application of contribution bases
(A) Compensation in excess of applicable base excluded
(i) In general
The term "compensation" does not include that part of
remuneration paid during any calendar year to an individual
by an employer after remuneration equal to the applicable
base has been paid during such calendar year to such
individual by such employer for services rendered as an
employee to such employer.
(ii) Remuneration not treated as compensation excluded
There shall not be taken into account under clause (i)
remuneration which (without regard to clause (i)) is not
treated as compensation under this subsection.
(iii) Hospital insurance taxes
Clause (i) shall not apply to -
(I) so much of the rate applicable under section 3201(a)
or 3221(a) as does not exceed the rate of tax in effect
under section 3101(b), and
(II) so much of the rate applicable under section 3211(a)
as does not exceed the rate of tax in effect under section
1401(b).
(B) Applicable base
(i) Tier 1 taxes
Except as provided in clause (ii), the term "applicable
base" means for any calendar year the contribution and
benefit base determined under section 230 of the Social
Security Act for such calendar year.
(ii) Tier 2 taxes, etc.
For purposes of -
(I) the taxes imposed by sections 3201(b), 3211(b), and
3221(b), and
(II) computing average monthly compensation under section
3(j) of the Railroad Retirement Act of 1974 (except with
respect to annuity amounts determined under subsection (a)
or (f)(3) of section 3 of such Act),
clause (2) of the first sentence, and the second sentence, of
subsection (c) of section 230 of the Social Security Act
shall be disregarded.
(C) Successor employers
For purposes of this paragraph, the second sentence of
section 3121(a)(1) (relating to successor employers) shall
apply, except that -
(i) the term "services" shall be substituted for
"employment" each place it appears,
(ii) the term "compensation" shall be substituted for
"remuneration (other than remuneration referred to in the
succeeding paragraphs of this subsection)" each place it
appears, and
(iii) the terms "employer", "services", and "compensation"
shall have the meanings given such terms by this section.
(3) Solely for purposes of the taxes imposed by section 3201
and other provisions of this chapter insofar as they relate to
such taxes, the term "compensation" also includes cash tips
received by an employee in any calendar month in the course of
his employment by an employer unless the amount of such cash tips
is less than $20.
(4)(A) For purposes of applying sections 3201(a), 3211(a), and
3221(a), in the case of payments made to an employee or any of
his dependents on account of sickness or accident disability,
clause (i) of the second sentence of paragraph (1) shall exclude
from the term "compensation" only -
(i) payments which are received under a workmen's
compensation law, and
(ii) benefits received under the Railroad Retirement Act of
1974.
(B) Notwithstanding any other provision of law, for purposes of
the sections specified in subparagraph (A), the term
"compensation" shall include benefits paid under section 2(a) of
the Railroad Unemployment Insurance Act for days of sickness,
except to the extent that such sickness (as determined in
accordance with standards prescribed by the Railroad Retirement
Board) is the result of on-the-job injury.
(C) Under regulations prescribed by the Secretary,
subparagraphs (A) and (B) shall not apply to payments made after
the expiration of a 6-month period comparable to the 6-month
period described in section 3121(a)(4).
(D) Except as otherwise provided in regulations prescribed by
the Secretary, any third party which makes a payment included in
compensation solely by reason of subparagraph (A) or (B) shall be
treated for purposes of this chapter as the employer with respect
to such compensation.
(5) The term "compensation" shall not include any benefit
provided to or on behalf of an employee if at the time such
benefit is provided it is reasonable to believe that the employee
will be able to exclude such benefit from income under section
74(c), 117, or 132.
(6) The term "compensation" shall not include any payment made,
or benefit furnished, to or for the benefit of an employee if at
the time of such payment or such furnishing it is reasonable to
believe that the employee will be able to exclude such payment or
benefit from income under section 127.
(7) The term "compensation" shall not include any contribution,
payment, or service provided by an employer which may be excluded
from the gross income of an employee, his spouse, or his
dependents, under the provisions of section 120 (relating to
amounts received under qualified group legal services plans).
(8) Treatment of certain deferred compensation and salary
reduction arrangements
(A) Certain employer contributions treated as compensation
Nothing in any paragraph of this subsection (other than
paragraph (2)) shall exclude from the term "compensation" any
amount described in subparagraph (A) or (B) of section
3121(v)(1).
(B) Treatment of certain nonqualified deferred compensation
The rules of section 3121(v)(2) which apply for purposes of
chapter 21 shall also apply for purposes of this chapter.
(9) Meals and lodging
The term "compensation" shall not include the value of meals or
lodging furnished by or on behalf of the employer if at the time
of such furnishing it is reasonable to believe that the employee
will be able to exclude such items from income under section 119.
(10) Archer MSA contributions
The term "compensation" shall not include any payment made to
or for the benefit of an employee if at the time of such payment
it is reasonable to believe that the employee will be able to
exclude such payment from income under section 106(b).
(11) Health savings account contributions
The term "compensation" shall not include any payment made to
or for the benefit of an employee if at the time of such payment
it is reasonable to believe that the employee will be able to
exclude such payment from income under section 106(d).
(f) Company
For purposes of this chapter, the term "company" includes
corporations, associations, and joint-stock companies.
(g) Carrier
For purposes of this chapter, the term "carrier" means a rail
carrier subject to part A of subtitle IV of title 49.
(h) Tips constituting compensation, time deemed paid
For purposes of this chapter, tips which constitute compensation
for purposes of the taxes imposed by section 3201 shall be deemed
to be paid at the time a written statement including such tips is
furnished to the employer pursuant to section 6053(a) or (if no
statement including such tips is so furnished) at the time
received.
(i) Concurrent employment by 2 or more employers
For purposes of this chapter, if 2 or more related corporations
which are employers concurrently employ the same individual and
compensate such individual through a common paymaster which is 1 of
such corporations, each such corporation shall be considered to
have paid as remuneration to such individual only the amounts
actually disbursed by it to such individual and shall not be
considered to have paid as remuneration to such individual amounts
actually disbursed to such individual by another of such
corporations.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 434; Aug. 31, 1954, ch. 1164,
pt. II, Sec. 206(b), 68 Stat. 1040; Pub. L. 89-212, Sec. 2(b),
Sept. 29, 1965, 79 Stat. 859; Pub. L. 90-624, Sec. 1, Oct. 22,
1968, 82 Stat. 1316; Pub. L. 94-92, title II, Sec. 203(b), Aug. 9,
1975, 89 Stat. 465; Pub. L. 94-93, title II, Secs. 204-206, Aug. 9,
1975, 89 Stat. 466; Pub. L. 94-455, title XIX, Secs. 1903(a)(10),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1808, 1834; Pub. L. 94-547,
Sec. 4(b), Oct. 18, 1976, 90 Stat. 2526; Pub. L. 95-473, Sec.
2(a)(2)(G), Oct. 17, 1978, 92 Stat. 1465; Pub. L. 97-34, title VII,
Secs. 741(d)(2), 743(a)-(c), Aug. 13, 1981, 95 Stat. 347, 348; Pub.
L. 97-123, Sec. 3(c), Dec. 29, 1981, 95 Stat. 1662; Pub. L. 98-76,
title II, Sec. 225(a)(1), (3), (b), (c)(1)(C), (6)-(8), Aug. 12,
1983, 97 Stat. 424, 425; Pub. L. 98-369, div. A, title V, Sec.
531(d)(2), July 18, 1984, 98 Stat. 884; Pub. L. 98-611, Sec. 1(f),
Oct. 31, 1984, 98 Stat. 3178; Pub. L. 98-612, Sec. 1(c), Oct. 31,
1984, 98 Stat. 3181; Pub. L. 99-514, title I, Sec. 122(e)(2), title
XVIII, Sec. 1899A(41), Oct. 22, 1986, 100 Stat. 2112, 2960; Pub. L.
100-647, title I, Secs. 1001(d)(2)(C)(ii), 1011B(a)(22)(B), Nov.
10, 1988, 102 Stat. 3351, 3486; Pub. L. 101-140, title II, Sec.
203(a)(2), Nov. 8, 1989, 103 Stat. 830; Pub. L. 101-239, title X,
Secs. 10205(a), 10206(a), (b), 10207(a), (b), Dec. 19, 1989, 103
Stat. 2474-2476; Pub. L. 101-508, title XI, Secs. 11331(c),
11704(a)(19), Nov. 5, 1990, 104 Stat. 1388-468, 1388-519; Pub. L.
103-66, title XIII, Sec. 13207(c), Aug. 10, 1993, 107 Stat. 468;
Pub. L. 103-296, title III, Sec. 320(a)(1)(D), Aug. 15, 1994, 108
Stat. 1535; Pub. L. 104-88, title III, Sec. 304(d), Dec. 29, 1995,
109 Stat. 944; Pub. L. 104-191, title III, Sec. 301(c)(2)(A), Aug.
21, 1996, 110 Stat. 2049; Pub. L. 106-554, Sec. 1(a)(7) [title II,
Sec. 202(b)(5)], Dec. 21, 2000, 114 Stat. 2763, 2763A-629; Pub. L.
107-90, title II, Sec. 204(e)(3), (4), Dec. 21, 2001, 115 Stat.
893; Pub. L. 108-173, title XII, Sec. 1201(d)(2)(A), Dec. 8, 2003,
117 Stat. 2477.)
-REFTEXT-
REFERENCES IN TEXT
The Railway Labor Act, referred to in subsecs. (a) and (c), is
act May 20, 1926, ch. 347, 44 Stat. 577, as amended, which is
classified principally to chapter 8 (Sec. 151 et seq.) of Title 45,
Railroads. For complete classification of this Act to the Code, see
section 151 of Title 45 and Tables.
Sections 1 and 6 of the Railroad Retirement Act of 1937, referred
to in subsecs. (b) and (d)(7), were classified to sections 228a and
228f of Title 45. The subject matter of sections 228a and 228f is
covered by sections 231 and 231o of Title 45.
Section 230 of the Social Security Act, referred to in subsec.
(e)(2)(B), is classified to section 430 of Title 42, The Public
Health and Welfare.
Section 3(a), (f)(3), (j) of the Railroad Retirement Act of 1974,
referred to in subsec. (e)(2)(B)(ii)(II), is classified to section
231b(a), (f)(3), (j) of Title 45, Railroads.
The Railroad Retirement Act of 1974, referred to in subsec.
(e)(4)(A)(ii), is act Aug. 29, 1935, ch. 812, as amended generally
by Pub. L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305,
which is classified generally to subchapter IV (Sec. 231 et seq.)
of chapter 9 of Title 45. For further details and complete
classification of this Act to the Code, see Codification note set
out preceding section 231 of Title 45, section 231t of Title 45,
and Tables.
Section 101(a)(15) of the Immigration and Nationality Act,
referred to in subsec. (e)(1), is classified to section 1101(a)(15)
of Title 8, Aliens and Nationality.
Section 2(a) of the Railroad Unemployment Insurance Act, referred
to in subsec. (e)(4)(B), is classified to section 352(a) of Title
45, Railroads.
-MISC1-
AMENDMENTS
2003 - Subsec. (e)(11). Pub. L. 108-173 added par. (11).
2001 - Subsec. (e)(2)(A)(iii)(II). Pub. L. 107-90, Sec.
204(e)(3), substituted "3211(a)" for "3211(a)(1)".
Subsec. (e)(2)(B)(ii)(I). Pub. L. 107-90, Sec. 204(e)(4),
substituted "3211(b)" for "3211(a)(2)".
Subsec. (e)(4)(A). Pub. L. 107-90, Sec. 204(e)(3), substituted
"3211(a)" for "3211(a)(1)".
2000 - Subsec. (e)(10). Pub. L. 106-554 substituted "Archer MSA"
for "Medical savings account" in heading.
1996 - Subsec. (e)(10). Pub. L. 104-191 added par. (10).
1995 - Subsec. (a). Pub. L. 104-88, Sec. 304(d)(1), substituted
"Surface Transportation Board" for "Interstate Commerce
Commission".
Subsec. (g). Pub. L. 104-88, Sec. 304(d)(2), substituted "a rail
carrier subject to part A of subtitle IV" for "an express carrier,
sleeping car carrier, or rail carrier providing transportation
subject to subchapter I of chapter 105".
1994 - Subsec. (e)(1). Pub. L. 103-296 substituted "(J), (M), or
(Q)" for "(J), or (M)" in two places.
1993 - Subsec. (e)(2)(A)(iii). Pub. L. 103-66, Sec. 13207(c)(1),
added cl. (iii).
Subsec. (e)(2)(B)(i). Pub. L. 103-66, Sec. 13207(c)(2), amended
heading and text of cl. (i) generally. Prior to amendment, text
read as follows:
"(I) In general. - Except as provided in subclause (II) of this
clause and in clause (ii), the term 'applicable base' means for any
calendar year the contribution and benefit base determined under
section 230 of the Social Security Act for such calendar year.
"(II) Hospital insurance taxes. - For purposes of applying so
much of the rate applicable under section 3201(a) or 3221(a) (as
the case may be) as does not exceed the rate of tax in effect under
section 3101(b), and for purposes of applying so much of the rate
of tax applicable under section 3211(a)(1) as does not exceed the
rate of tax in effect under section 1401(b), the term 'applicable
base' means for any calendar year the applicable contribution base
determined under section 3121(x)(2) for such calendar year."
1990 - Subsec. (e)(2)(B)(i). Pub. L. 101-508, Sec. 11331(c),
amended cl. (i) generally. Prior to amendment, cl. (i) read as
follows: "Except as provided in clause (ii), the term 'applicable
base' means for any calendar year the contribution and benefit base
determined under section 230 of the Social Security Act for such
calendar year."
Subsec. (e)(8) to (10). Pub. L. 101-508, Sec. 11704(a)(19),
redesignated pars. (9) and (10) as (8) and (9), respectively.
1989 - Subsec. (e)(1). Pub. L. 101-239, Sec. 10207(b), inserted
at end "Nothing in the regulations prescribed for purposes of
chapter 24 (relating to wage withholding) which provides an
exclusion from 'wages' as used in such chapter shall be construed
to require a similar exclusion from 'compensation' in regulations
prescribed for purposes of this chapter."
Pub. L. 101-239, Sec. 10206(a), substituted "(iii)" for "or
(iii)" and inserted ", or (iv) any remuneration which would not (if
chapter 21 applied to such remuneration) be treated as wages (as
defined in section 3121(a)) by reason of section 3121(a)(5)".
Pub. L. 101-239, Sec. 10205(a), inserted "or death, except that
this clause does not apply to a payment for group-term life
insurance to the extent that such payment is includible in the
gross income of the employee" before ", (ii) tips".
Subsec. (e)(8). Pub. L. 101-140 amended subsec. (e) to read as if
amendments by Pub. L. 100-647, Sec. 1011B(a)(22)(B), had not been
enacted, see 1988 Amendment note below.
Subsec. (e)(9). Pub. L. 101-239, Sec. 10206(b), added par. (9).
Subsec. (e)(10). Pub. L. 101-239, Sec. 10207(a), added par. (10).
1988 - Subsec. (e)(1). Pub. L. 100-647, Sec. 1001(d)(2)(C)(ii),
substituted "(F), (J), or (M)" for "(F) or (J)" in two places.
Subsec. (e)(8). Pub. L. 100-647, Sec. 1011B(a)(22)(B), added par.
(8).
1986 - Subsec. (e)(5). Pub. L. 99-514, Sec. 122(e)(2), inserted
reference to section 74(c).
Subsec. (e)(6), (7). Pub. L. 99-514, Sec. 1899A(41), redesignated
par. (6), relating to amounts excludable under section 120, as (7).
1984 - Subsec. (e)(5). Pub. L. 98-369, Sec. 531(d)(2), added par.
(5).
Subsec. (e)(6). Pub. L. 98-611 added par. (6) relating to amounts
excludable under section 127.
Pub. L. 98-612 added par. (6) relating to amounts excludable
under section 120.
1983 - Subsec. (e)(1). Pub. L. 98-76, Sec. 225(a)(3), struck out
provisions that compensation which was paid in one calendar month
but which would be payable in a prior or subsequent taxable month
but for the fact prescribed date of payment would fall on a
Saturday, Sunday or legal holiday would be deemed to have been paid
in such prior or subsequent taxable month and that compensation
which was earned during the period for which the Secretary would
require a return of taxes under this chapter to be made and which
was payable during the calendar month following such period would
be deemed to have been paid during such period only.
Subsec. (e)(2). Pub. L. 98-76, Sec. 225(a)(1), amended par. (2)
generally, substituting provisions which exclude compensation in
excess of applicable base, which define "applicable base", and
which provide for the applicability of successor employer
provisions to this paragraph, for provisions that a payment made by
an employer to an individual through the employer's payroll would
be presumed, in the absence of evidence to the contrary, to be
compensation for service rendered by such individual as an employee
of the employer in the period with respect to which the payment was
made, that an employee receiving retroactive wage payments would be
deemed to be paid compensation in the period during which such
compensation was earned only upon a written request by such
employee, made within six months following the payment, and a
showing that such compensation was earned during a period other
than the period in which it was paid, that an employee would be
deemed to be paid "for time lost" the amount he was paid by an
employer with respect to an identifiable period of absence from the
active service of the employer, including absence on account of
personal injury, and the amount he was paid by the employer for
loss of earnings resulting from his displacement to a less
remunerative position or occupation, and that if a payment was made
by an employer with respect to a personal injury and included pay
for time lost, the total payment would be deemed to be paid for
time lost unless, at the time of payment, a part of such payment
was specifically apportioned to factors other than time lost, in
which event only such part of the payment as was not so apportioned
would be deemed to be paid for time lost.
Subsec. (e)(3). Pub. L. 98-76, Sec. 225(c)(1)(C), (6),
substituted "taxes imposed by section 3201" for "tax imposed by
section 3201", and "such taxes" for "such tax".
Subsec. (e)(4)(A). Pub. L. 98-76, Sec. 225(c)(7), substituted
"3201(a), 3211(a)(1), and 3221(a)" for "3201(b) and 3221(b) (and so
much of section 3211(a) as relates to the rates of the taxes
imposed by sections 3101 and 3111)".
Subsec. (h). Pub. L. 98-76, Sec. 225(c)(8), substituted "taxes
imposed by section 3201" for "tax imposed under section 3201", and
struck out "; and tips so deemed to be paid in any month shall be
deemed paid for services rendered in such month" after "time
received".
Subsec. (i). Pub. L. 98-76, Sec. 225(b), added subsec. (i).
1981 - Subsec. (e)(1). Pub. L. 97-34, Sec. 743(a), inserted after
third sentence provision that "Compensation which is paid in one
calendar month but which would be payable in a prior or subsequent
taxable month but for the fact that prescribed date of payment
would fall on a Saturday, Sunday or legal holiday shall be deemed
to have been paid in such prior or subsequent taxable month."
Pub. L. 97-34, Sec. 741(d)(2), struck out cl. (iii) exclusion
from term "compensation" the voluntary payment by an employer,
without deduction from the remuneration of the employee, of the tax
imposed on such employee by section 3201, redesignated as cl. (iii)
provisions formerly designated (iv).
Subsec. (e)(2). Pub. L. 97-34, Sec. 743(b), (c), inserted first
sentence respecting presumption of a payment through the employer's
payroll as being compensation for services rendered as an employee
in the period with respect to which payment is made, and in second
sentence following "an employee" inserted "receiving retroactive
wage payments".
Subsec. (e)(4). Pub. L. 97-123 added par. (4).
1978 - Subsec. (g). Pub. L. 95-473 substituted "express carrier,
sleeping car carrier, or rail carrier providing transportation
subject to subchapter I of chapter 105 of title 49" for "express
company, sleeping-car company, or carrier by railroad, subject to
part I of the Interstate Commerce Act (49 U.S.C., chapter 1)".
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1903(a)(10)(A),
1906(b)(13)(A), struck out "44 Stat. 577;" before "45 U.S.C.,
chapter 8" and "or his delegate" after "Secretary", respectively.
Subsec. (b). Pub. L. 94-455, Sec. 1903(a)(10)(B), struck out in
provisions following par. (4) "50 Stat. 312;" before "45 U.S.C.
228f".
Subsec. (c). Pub. L. 94-455, Sec. 1903(a)(10)(C), struck out "44
Stat. 577;" before "45 U.S.C. chapter 8".
Subsec. (d)(7). Pub. L. 94-455, Sec. 1903(a)(10)(D), struck out
"50 Stat. 308;" before "45 U.S.C. 228a".
Subsec. (e)(1). Pub. L. 94-547 provided that "compensation" not
include 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 sickness or accident disability or
medical or hospitalization expenses in connection with sickness or
accident disability, or an amount paid specifically - either as an
advance, as reimbursement or allowance - for traveling or other
bona fide and necessary expenses incurred or reasonably expected to
be incurred in the business of the employer provided any such
payment is identified by the employer either by a separate payment
or by specifically indicating the separate amounts where both wages
and expense reimbursement or allowance are combined in a single
payment.
Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate"
after "Secretary".
1975 - Subsec. (e)(1). Pub. L. 94-93, Sec. 204, substituted "paid
to an individual for services rendered as an employee to one or
more employers" for "earned by an individual for services rendered
as an employee to one or more employers, or as an employee
representative, including remuneration paid for time lost as an
employee, but remuneration paid for time lost shall be deemed
earned in the month in which such time is lost".
Pub. L. 94-92 increased from $3 to $25 amount of compensation
earned in the service of a local lodge or division of a
railway-labor-organization employer to be disregarded with respect
to any calendar month in the determination of amount of taxes under
sections 3201 and 3221.
Subsec. (e)(2). Pub. L. 94-93, Secs. 205, 206, substituted
provision that an employee shall be deemed to be paid compensation
in the period during which such compensation is earned only upon a
written request by such employee, made within six months following
the payment, and a showing that such compensation was earned during
a period other than the period in which it was paid for provision
that a payment made by an employer to an individual through the
employer's payroll shall be presumed, in the absence of evidence to
the contrary, to be compensation for service rendered by such
individual as an employee of the employer in the period with
respect to which payment is made.
1968 - Subsec. (e)(1). Pub. L. 90-624 inserted provision
excluding remuneration for service performed by nonresident alien
individuals temporarily in the United States as participants in a
cultural exchange or training program.
1965 - Subsec. (e)(1). Pub. L. 89-212, Sec. 2(b)(1), inserted
"(except as is provided under paragraph (3))".
Subsec. (e)(3). Pub. L. 89-212, Sec. 2(b)(2), added par. (3).
Subsec. (h). Pub. L. 89-212, Sec. 2(b)(3), added subsec. (h).
1954 - Subsec. (e)(1). Act Aug. 31, 1954, excluded from taxation
compensation, for service as a delegate to a national or
international convention of a railway labor organization, of any
person who has no other previous creditable service.
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by Pub. L. 108-173 applicable to taxable years
beginning after Dec. 31, 2003, see section 1201(k) of Pub. L.
108-173, set out as a note under section 62 of this title.
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by Pub. L. 107-90 applicable to calendar years
beginning after Dec. 31, 2001, see section 204(f) of Pub. L.
107-90, set out as an Effective and Termination Dates of 2001
Amendments note under section 24 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-191 applicable to taxable years
beginning after Dec. 31, 1996, see section 301(j) of Pub. L.
104-191, set out as a note under section 62 of this title.
EFFECTIVE DATE OF 1995 AMENDMENT
Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
of Pub. L. 104-88, set out as an Effective Date note under section
701 of Title 49, Transportation.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-296 effective with calendar quarter
following Aug. 15, 1994, see section 320(c) of Pub. L. 103-296, set
out as a note under section 871 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable to 1994 and later calendar
years, see section 13207(e) of Pub. L. 103-66, set out as a note
under section 1402 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11331(c) of Pub. L. 101-508 applicable to
1991 and later calendar years, see section 11331(e) of Pub. L.
101-508, set out as a note under section 1402 of this title.
EFFECTIVE DATE OF 1989 AMENDMENTS
Section 10205(b) of Pub. L. 101-239 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendment made by subsection (a) [amending this section] shall
apply to -
"(A) group-term life insurance coverage in effect after
December 31, 1989, and
"(B) remuneration paid before January 1, 1990, which the
employer treated as compensation when paid.
"(2) Exception. - The amendment made by subsection (a) shall not
apply with respect to payments by the employer (or a successor of
such employer) for group-term life insurance for such employer's
former employees who separated from employment with the employer on
or before December 31, 1989, to the extent that such payments are
not for coverage for any such employee for any period for which
such employee is employed by such employer (or a successor of such
employer) after the date of such separation.
"(3) Benefit determinations to take into account remuneration on
which tax paid. - The term 'compensation' as defined in section
1(h) of the Railroad Retirement Act of 1974 [45 U.S.C. 231(h)]
includes any remuneration which is included in the term
'compensation' as defined in section 3231(e)(1) of the Internal
Revenue Code of 1986 by reason of the amendment made by subsection
(a)."
Section 10206(c) of Pub. L. 101-239 provided that:
"(1) Subsection (a). - The amendment made by subsection (a)
[amending this section] shall apply to remuneration paid after
December 31, 1989.
"(2) Subsection (b). - Except as otherwise provided in this
subsection -
"(A) In general. - The amendment made by subsection (b)
[amending this section] shall apply to -
"(i) remuneration paid after December 31, 1989, and
"(ii) remuneration paid before January 1, 1990, which the
employer treated as compensation when paid.
"(B) Benefit determinations to take into account remuneration
on which tax paid. - The term 'compensation' as defined in
section 1(h) of the Railroad Retirement Act of 1974 [45 U.S.C.
231(h)] includes any remuneration which is included in the term
'compensation' as defined in section 3231(e)(1) of the Internal
Revenue Code of 1986 by reason of the amendment made by
subsection (b).
"(3) Special rule for certain payments. - For purposes of
applying the amendment made by subsection (b) to remuneration paid
after December 31, 1989, which would have been taken into account
before January 1, 1990, if such amendments had applied to periods
before January 1, 1990, such remuneration shall be taken into
account when paid (or, at the election of the payor, at the time
which would be appropriate if such amendments had applied).
"(4) Exception for certain 401(k) contributions. - The amendment
made by subsection (b) shall not apply to employer contributions
made during 1990 and attributable to services performed during 1989
under a qualified cash or deferred arrangement (as defined in
section 401(k) of the Internal Revenue Code of 1986) if, under the
terms of the arrangement as in effect on June 15, 1989 -
"(A) the employee makes an election with respect to such
contributions before January 1, 1990, and
"(B) the employer identifies the amount of such contribution
before January 1, 1990.
"(5) Special rule with respect to nonqualified deferred
compensation plans. - In the case of an agreement in existence on
June 15, 1989, between a nonqualified deferred compensation plan
(as defined in section 3121(v)(2)(C) of such Code) and an
individual, the amendment made by subsection (b) shall apply with
respect to services performed by the individual after December 31,
1989. The preceding sentence shall not apply in the case of a plan
to which section 457(a) of such Code applies."
Section 10207(c) of Pub. L. 101-239 provided that: "The
amendments made by this section [amending this section] shall apply
to remuneration paid after December 31, 1989."
Amendment by Pub. L. 101-140 effective as if included in section
1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set
out as a note under section 79 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1001(d)(2)(C)(ii) of Pub. L. 100-647
effective, except as otherwise provided, as if included in the
provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which
such amendment relates, see section 1019(a) of Pub. L. 100-647, set
out as a note under section 1 of this title.
Amendment by section 1011B(a)(22)(B) of Pub. L. 100-647 not
applicable to any individual who separated from service with the
employer before Jan. 1, 1989, see section 1011B(a)(22)(F) of Pub.
L. 100-647, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 122(e)(2) of Pub. L. 99-514 applicable to
prizes and awards granted after Dec. 31, 1986, see section 151(c)
of Pub. L. 99-514, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1984 AMENDMENTS
Section 1(d)(3) of Pub. L. 98-612 provided that: "The amendment
made by subsection (c) [amending this section] shall apply to
remuneration paid after December 31, 1984."
Amendment by Pub. L. 98-611 applicable to remuneration paid after
Dec. 31, 1984, see section 1(g)(3) of Pub. L. 98-611, set out as a
note under section 127 of this title.
Amendment by Pub. L. 98-369 effective Jan. 1, 1985, see section
531(h) of Pub. L. 98-369, set out as an Effective Date note under
section 132 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-76 applicable to remuneration paid after
Dec. 31, 1984, see section 227(a) of Pub. L. 98-76, set out as a
note under section 3201 of this title.
EFFECTIVE DATE OF 1981 AMENDMENTS
Amendment by Pub. L. 97-123 applicable to remuneration paid after
Dec. 31, 1981, except as otherwise provided, see section 3(g) of
Pub. L. 97-123, set out as a note under section 3121 of this title.
Amendment by section 741(d)(2) of Pub. L. 97-34 applicable to
compensation paid for services rendered after Sept. 30, 1981, see
section 741(e) of Pub. L. 97-34, set out as a note under section
3201 of this title.
Section 743(d) of Pub. L. 97-34 provided that: "The amendments
made by this section [amending this section] shall apply for
taxable years beginning after December 31, 1981."
EFFECTIVE DATE OF 1976 AMENDMENT
Section 4(c)(2) of Pub. L. 94-547 provided that: "The amendments
made by subsection (b) of this section [amending this section]
shall apply with respect to taxable years ending after December 31,
1953: Provided, however, That any taxes paid under the Railroad
Retirement Tax Act [this chapter] prior to the date on which this
Act is enacted [Oct. 18, 1976] shall not be affected or adjusted by
reason of the amendments made by such subsection (b) except to the
extent that the applicable period of limitation for the assessment
of tax and the filing of a claim for credit or refund has not
expired prior to the date on which this Act is enacted. If the
applicable period of limitation for the filing of a claim for
credit or refund would expire within the six-month period following
the date on which this Act is enacted, the applicable period for
the filing of such a claim for credit or refund shall be extended
to include such six-month period."
EFFECTIVE DATE OF 1975 AMENDMENTS
Amendment by sections 204 and 205 of Pub. L. 94-93 applicable for
taxable years ending on or after Aug. 9, 1975, and for taxable
years ending before Aug. 9, 1975, as to which the period for
assessment and collection of tax or the filing of a claim for
credit or refund has not expired on Aug. 9, 1975, and amendment by
section 206 of Pub. L. 94-93 applicable for taxable years beginning
on or after Aug. 9, 1975: Provided, however, That with respect to
payment made prior to Aug. 9, 1975, the employee may file a written
request under section 206 of Pub. L. 94-93 within six months after
Aug. 9, 1975, see section 207 of Pub. L. 94-93, set out as a note
under section 3201 of this title.
Amendment by Pub. L. 94-92 effective Jan. 1, 1975, and applicable
only with respect to compensation paid for services rendered on or
after Jan. 1, 1975, see section 203(c) of Pub. L. 94-92, set out as
a note under section 1402 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 4(a) of Pub. L. 90-624, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) The amendments made by the first two sections of this Act
[amending this section and section 228a of Title 45, Railroads]
shall apply with respect to service performed after December 31,
1961.
"(2) Notwithstanding the expiration before the date of the
enactment of this Act [Oct. 22, 1968] or within 6 months after such
date of the period for filing claim for credit or refund, claim for
credit or refund of any overpayment of any tax imposed by chapter
22 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954, 26
U.S.C. 3201 et seq.] attributable to the amendment made by the
first section of this Act [amending this section] may be filed at
any time within one year after such date of enactment.
"(3) Any credit or refund of an overpayment of the tax imposed by
section 3201 or 3211 of the Internal Revenue Code of 1986 which is
attributable to the amendment made by the first section of this Act
shall be appropriately adjusted for any lump-sum payment which has
been made under section 5(f)(2) of the Railroad Retirement Act of
1937 [section 228e(f)(2) of Title 45] before the date of the
allowance of such credit or the making of such refund."
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-212 effective only with respect to tips
received after 1965, see section 6 of Pub. L. 89-212, set out as a
note under section 3201 of this title.
EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by act Aug. 31, 1954, effective as if enacted as a part
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], see
section 407 of act Aug. 31, 1954, as amended, set out as a note
under section 3201 of this title.
REGULATIONS
For provisions requiring that the regulations prescribed under
subsec. (e)(4) of this section prescribe procedures under which, if
(with respect to any employee) the third party promptly (A)
withholds the employee portion of the taxes involved, (B) deposits
such portion under section 6302 of such Code, and (C) notifies the
employer of the amount of the wages or compensation involved, the
employer (and not the third party) shall be liable for the employer
portion of the taxes involved and for meeting the requirements of
section 6051 of this title (relating to receipts for employees)
with respect to the wages or compensation involved, see section
3(d) of Pub. L. 97-123, set out as a note under section 3121 of
this title.
EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM
EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY
HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS
For purposes of this chapter, the term "compensation" shall not
include the amount of any refund required under section 421 of Pub.
L. 100-360, 42 U.S.C. 1395b note, see section 10202 of Pub. L.
101-239, set out as a note under section 1395b of Title 42, The
Public Health and Welfare.
PAYMENTS UNDER STATE TEMPORARY DISABILITY LAW TO BE TREATED AS
REMUNERATION FOR SERVICE
For purposes of applying subsec. (e) of this section with respect
to subsec. (e)(4) of this section, payments under a State temporary
disability law to be treated as remuneration for service, see
section 3(e) of Pub. L. 97-123, set out as a note under section
3121 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1402, 3121, 3201, 3202,
3211, 3212, 3221, 6053, 6413, 6652 of this title; title 42 sections
410, 411; title 45 section 351.
-End-
-CITE-
26 USC Sec. 3232 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter D - General Provisions
-HEAD-
Sec. 3232. Court jurisdiction
-STATUTE-
The several district courts of the United States shall have
jurisdiction to entertain an application by the Attorney General on
behalf of the Secretary to compel an employee or other person
residing within the jurisdiction of the court or an employer
subject to service of process within its jurisdiction to comply
with any obligations imposed on such employee, employer, or other
person under the provisions of this chapter. The jurisdiction
herein specifically conferred upon such Federal courts shall not be
held exclusive of any jurisdiction otherwise possessed by such
courts to entertain civil actions, whether legal or equitable in
nature, in aid of the enforcement of rights or obligations arising
under the provisions of this chapter.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 437; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 3233 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter D - General Provisions
-HEAD-
Sec. 3233. Short title
-STATUTE-
This chapter may be cited as the "Railroad Retirement Tax Act."
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 438.)
-End-
-CITE-
26 USC Subchapter E - Tier 2 Tax Rate Determination 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter E - Tier 2 Tax Rate Determination
-HEAD-
SUBCHAPTER E - TIER 2 TAX RATE DETERMINATION
-MISC1-
Sec.
3241. Determination of tier 2 tax rate based on average
account benefits ratio.
-End-
-CITE-
26 USC Sec. 3241 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter E - Tier 2 Tax Rate Determination
-HEAD-
Sec. 3241. Determination of tier 2 tax rate based on average
account benefits ratio
-STATUTE-
(a) In general
For purposes of sections 3201(b), 3211(b), and 3221(b), the
applicable percentage for any calendar year is the percentage
determined in accordance with the table in subsection (b).
(b) Tax rate schedule
Average account benefits Applicable Applicable
ratio percentage percentage
for sections for section
3211(b) and 3201(b)
3221(b)
At least But less
than
--------------------------------------------------------------------
2.5 22.1 4.9
2.5 3.0 18.1 4.9
3.0 3.5 15.1 4.9
3.5 4.0 14.1 4.9
4.0 6.1 13.1 4.9
6.1 6.5 12.6 4.4
6.5 7.0 12.1 3.9
7.0 7.5 11.6 3.4
7.5 8.0 11.1 2.9
8.0 8.5 10.1 1.9
8.5 9.0 9.1 0.9
9.0 8.2 0
--------------------------------------------------------------------
(c) Definitions related to determination of rates of tax
(1) Average account benefits ratio
For purposes of this section, the term "average account
benefits ratio" means, with respect to any calendar year, the
average determined by the Secretary of the account benefits
ratios for the 10 most recent fiscal years ending before such
calendar year. If the amount determined under the preceding
sentence is not a multiple of 0.1, such amount shall be increased
to the next highest multiple of 0.1.
(2) Account benefits ratio
For purposes of this section, the term "account benefits ratio"
means, with respect to any fiscal year, the amount determined by
the Railroad Retirement Board by dividing the fair market value
of the assets in the Railroad Retirement Account and of the
National Railroad Retirement Investment Trust (and for years
before 2002, the Social Security Equivalent Benefits Account) as
of the close of such fiscal year by the total benefits and
administrative expenses paid from the Railroad Retirement Account
and the National Railroad Retirement Investment Trust during such
fiscal year.
(d) Notice
No later than December 1 of each calendar year, the Secretary
shall publish a notice in the Federal Register of the rates of tax
determined under this section which are applicable for the
following calendar year.
-SOURCE-
(Added Pub. L. 107-90, title II, Sec. 204(d), Dec. 21, 2001, 115
Stat. 892.)
-MISC1-
EFFECTIVE DATE
Subchapter applicable to calendar years beginning after Dec. 31,
2001, see section 204(f) of Pub. L. 107-90, set out as an Effective
and Termination Dates of 2001 Amendments note under section 24 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3201, 3211, 3221 of this
title; title 45 sections 231u, 231v.
-End-
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