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.
Tier 2 tax
In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to the percentage determined under section 3241 for any calendar year of the compensation received during such calendar year by such employee representative for services rendered by such employee representative.
Cross reference
For application of different contribution bases with respect to the taxes imposed by subsections (a) and (b), see section 3231(e)(2).
Aug. 16, 1954, ch. 73668A Stat. 432Aug. 31, 1954, ch. 116468 Stat. 1040Pub. L. 86–2873 Stat. 29Pub. L. 88–133, title II, § 20177 Stat. 221Pub. L. 89–97, title I79 Stat. 335Pub. L. 89–21279 Stat. 861Pub. L. 89–699, title III, § 30180 Stat. 1078Pub. L. 89–700, title III, § 301(v)80 Stat. 1088Pub. L. 91–215, § 484 Stat. 70Pub. L. 93–69, title I, § 102(c)87 Stat. 162Pub. L. 94–93, title II, § 20289 Stat. 466Pub. L. 94–455, title XIX, § 1903(a)(8)90 Stat. 1807Pub. L. 97–34, title VII, § 741(b)95 Stat. 347Pub. L. 98–76, title II97 Stat. 419Pub. L. 101–508, title V, § 5125(b)104 Stat. 1388–285Pub. L. 107–90, title II115 Stat. 891Pub. L. 113–295, div. A, title II, § 221(a)(100)(B)128 Stat. 4052(, ; , pt. II, § 206(a), ; , pt. II, § 201(c), , ; , , ; , §§ 105(b)(2), 111(c)(2), , , 342; , §§ 4, 5(b), , ; (b), (d), , ; , (vi), , , 1089; , , ; , , ; , , ; , , ; , , ; , §§ 211(c), 223, , , 421; , , ; , §§ 203(a), 204(b), , ; , , .)
Editorial Notes
Amendments
Pub. L. 113–2952014—Subsec. (b). amended subsec. (b) generally. Prior to amendment, subsec. (b) consisted of pars. (1) and (2) establishing the tier 2 tax and its applicable percentage.
Pub. L. 107–90, § 204(b)2001—Subsec. (a). , added subsec. (a) and struck out former subsec. (a), which related to imposition of tier 1 and 2 taxes.
Pub. L. 107–90, § 204(b)Subsec. (b). , added subsec. (b).
Pub. L. 107–90, § 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.”
Pub. L. 107–90, § 204(b)Subsec. (c). , added subsec. (c).
Pub. L. 101–5081990—Subsec. (a). 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.
Pub. L. 98–76, § 2231983—Subsec. (a). , 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, § 211(c), substituted “12.75 percent” for “11.75 percent”.
Pub. L. 97–341981—Subsec. (a). substituted “11.75” for “9.5”.
Pub. L. 94–4551976—Subsec. (a). 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 ,” after “rendered by him”, “of the Internal Revenue Code of 1954” after “as defined in section 3121”, and “after ” after “for any month”.
Pub. L. 94–931975—Subsec. (a). inserted “in any calendar month” after “compensation paid”.
Pub. L. 93–69Provided1973—Subsec. (a). substituted new tax rate provisions on income of employee representatives for services rendered after , for former provisions which prescribed 12½, 13, 14, 14½, and 15 percent on income for services rendered after , , , , and , 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 : , That the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after , 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 2¾ percent (the rate provided by paragraph (2) of section 3101 as amended by the Social Security Amendments of 1956).
Pub. L. 91–215section 3221(c) of this title1970—Subsec. (b). substituted the rate of excise tax imposed on every employer under 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.
Pub. L. 89–7001966— substituted “rendered after ” for “rendered after ”, 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 ” 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, § 301(b), (d), designated existing provisions as subsec. (a), and substituted “14 percent” for “13½ percent” in subd. (3), “14½ percent” for “14 percent” in subd. (4), and “15 percent” for “14½ percent” in subd. (5).
Pub. L. 89–699, § 301(d)Subsec. (b). , added subsec. (b).
Pub. L. 89–2121965— substituted pars. (1) to (5) for former pars. (1) and (2) which imposed a tax equal to 13½ 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 , and 14½ percent of so much of the compensation paid to such employee representative for services rendered by him after , 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 2¾ 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.
Pub. L. 88–1331963— 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.
Pub. L. 86–28section 3101 of this title1959— increased the tax from 12½ percent of the compensation not in excess of $350 for any calendar month to 13½ percent of the compensation not in excess of $400 for any calendar month for services rendered before , and to 14½ percent for services rendered after , and required an increase in the rate of tax with respect to compensation paid for services rendered after , 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 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 , substituted “$350” for “$300”.
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Pub. L. 113–295section 221(b) of Pub. L. 113–295section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .
Effective Date of 2001 Amendment
Pub. L. 107–90, title II, § 203(c)115 Stat. 891
section 204(b) of Pub. L. 107–90section 204(f) of Pub. L. 107–90section 24 of this titleAmendment by applicable to calendar years beginning after , see , set out as a note under .
Effective and Termination Dates of 1983 Amendment
section 211(c) of Pub. L. 98–76section 212 of Pub. L. 98–76section 3201 of this titleAmendment by applicable to compensation paid for services rendered after , and before , see , set out as a note under .
section 223 of Pub. L. 98–76section 227(a) of Pub. L. 98–76section 3201 of this titleAmendment by applicable to remuneration paid after , see , set out as a note under .
Effective Date of 1981 Amendment
Pub. L. 97–34section 741(e) of Pub. L. 97–34section 3201 of this titleAmendment by applicable to compensation paid for services rendered after , see , set out as a note under .
Effective Date of 1976 Amendment
Pub. L. 94–455section 1903(d) of Pub. L. 94–455section 3101 of this titleAmendment by applicable with respect to compensation paid for services rendered after , see , set out as a note under .
Effective Date of 1975 Amendment
Pub. L. 94–93section 207 of Pub. L. 94–93section 3201 of this titleAmendment by applicable for taxable years ending on or after , and for taxable years ending before , 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 , see , set out as a note under .
Effective Date of 1973 Amendment
Pub. L. 93–69section 109(b) of Pub. L. 93–69section 3201 of this titleAmendment by effective , and applicable only with respect to compensation paid for services rendered on or after ; and applicable to railway labor organization covered by private supplemental pension plan as of , and subject to a moratorium, agreed to on or before , 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 , set out as a note under .
Effective Date of 1966 Amendment
Pub. L. 89–699, title III, § 301(f)80 Stat. 1079Pub. L. 91–215, § 884 Stat. 72
Effective Date of 1965 Amendments
section 4 of Pub. L. 89–212Pub. L. 89–212section 5(b) of Pub. L. 89–212section 6 of Pub. L. 89–212section 3201 of this titleAmendment by effective only with respect to calendar months after month in which is enacted [September 1965], and amendment by effective only with respect to compensation paid for services rendered after , see , set out as a note under .
section 105(b)(2) of Pub. L. 89–97section 105(b)(4) of Pub. L. 89–97section 3201 of this titleAmendment by effective with respect to compensation paid for services rendered after , see , set out as a note under .
section 111(c)(2) of Pub. L. 89–97section 111(e) of Pub. L. 89–97section 1395i–1 of Title 42Amendment by 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 , set out as an Effective Date note under , The Public Health and Welfare.
Effective Date of 1959 Amendment
Pub. L. 86–28section 202 of Pub. L. 86–28section 3201 of this titleAmendment by effective, except as otherwise provided, first day of calendar month next following May 1959, see , set out as a note under .
Effective Date of 1954 Amendment
section 3201 of this titleAmendment by act , effective as if enacted as a part of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], see section 407 of act , as amended, set out as a note under .
Separability
Pub. L. 91–215, § 984 Stat. 72
Pub. L. 97–123Penalties and Interest Not Assessed for Failure To Make Timely Payment During Period , to , of Taxes Attributable to Amendments by
section 3 of Pub. L. 97–123section 3(f) of Pub. L. 97–123section 3101 of this titleFor 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 , and ending , to the extent that such taxes are attributable to or the amendments made by that section, see , set out as a note under .