26 U.S.C. § 3221

Editorial Notes

Amendments

Pub. L. 115–1412018—Subsecs. (c), (d). redesignated subsec. (d) as (c) and struck out former subsec. (c) which provided for a special rate for certain individuals hired in 2010.

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. 111–1472010—Subsecs. (c), (d). added subsec. (c) and redesignated former subsec. (c) as (d).

Pub. L. 107–90, § 204(a)2001—Subsec. (b). , 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.”

Pub. L. 107–90, § 203(b)Subsecs. (c) to (e). , 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.

Pub. L. 101–5081990—Subsec. (a). 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.

Pub. L. 100–2031987—Subsec. (b). 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:

Pub. L. 98–76, § 222(a)1983—Subsec. (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, § 211(b), substituted “12.75 percent” for “11.75 percent”.

Pub. L. 98–76, § 222(a)Subsec. (b). , 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).

Pub. L. 98–76, § 222(b)Subsec. (e). , added subsec. (e).

Pub. L. 97–341981—Subsec. (a). substituted in first sentence “11.75” for “9.5”.

Pub. L. 94–455September 30, 19731976—Subsec. (a). , §§ 1903(a)(9)(A), 1906(b)(13)(G), struck out provisions relating to the 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”.

Pub. L. 94–455, § 1903(a)(9)(B)September 30, 1973Subsec. (b). , struck out “, with respect to compensation paid for services rendered after ,” 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)”.

Pub. L. 94–455November 1, 1966March 31, 1970April 1, 1970April 1, 1970Subsec. (c). , §§ 1903(a)(9)(C), 1906(b)(13)(G), struck out “(1) at the rate of two cents for the period beginning , and ending , and (2) commencing ,” after “during any calendar quarter,” , “commencing with the quarter beginning ” after “required for each calendar quarter”, “of the Treasury” after “representatives, and the Secretary” and “of the Treasury” after “shall certify to the Secretary”.

Pub. L. 94–931975—Subsec. (a). substituted “compensation paid in any calendar month by such employer” for “compensation paid by such employer”.

Pub. L. 93–445, § 501(a)April 1, 1970December 31, 19741974—Subsec. (c). , 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 , 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 ” 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”.

Pub. L. 93–445, § 501(b)Subsec. (d). , 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”.

Pub. L. 93–69, § 102(d)Sept. 30, 1973Sept. 30, 1965Dec. 31, 1965Dec. 31, 1966Dec. 31, 1967Dec. 31, 1968Sept. 30, 19651973—Subsec. (a). , (e), substituted new tax rate provisions on employers for services rendered after , for former provisions which prescribed 6¼, 6½, 7, 7¼, and 7½ percent on income for services rendered after ; ; ; ; and , 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 , 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.

Pub. L. 93–69, § 102(f)Subsec. (b). , 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 2¾ percent (the rate provided by paragraph (2) of section 3111 as amended by the Social Security Amendments of 1956)”.

Pub. L. 91–215, § 5(a)Nov. 1, 1966Mar. 31, 1970section 228c(j) of this title1970—Subsec. (c). , 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 to , and thereafter at such rates as will permit supplemental annuity payments under , 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.

Pub. L. 91–215, § 5(b)(1)Subsec. (d). , added subsec. (d).

Pub. L. 89–700September 30, 1965September 30, 19651966—Subsec. (a). , §§ 301(iii), (v), 302, substituted “after ” 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 ” 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, § 301(c), substituted “7 percent” for “6¾ percent” in subd. (3), “7¼ percent” for “7 percent” in subd. (4), and “7½ percent” for “7¼ percent” in subd. (5).

Pub. L. 89–700, § 301(vi)September 30, 1965December 31, 1964Subsec. (b). , substituted “after ” for “after ”.

Pub. L. 89–699Subsec. (c). added subsec. (c).

Pub. L. 89–212Jan. 1, 1962Dec. 31, 19611965—Subsec. (a). substituted pars. (1) to (5) for former pars. (1) and (2) which imposed an excise tax equal to 6¾ 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 , and 7¼ percent of so much of the compensation paid by such employer for services rendered to 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” wherever appearing.

Pub. L. 89–97Subsec. (b). substituted “the rate of the tax imposed with respect to wages by section 3111(a) at such time exceeds 2¾ 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.

Pub. L. 88–1331963—Subsec. (a). 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. 86–28, § 201(d)(1)Jan. 1, 1962Dec. 31, 1961December 31, 19541959—Subsec. (a). , (2)(A), (B), designated former provisions of section as subsec. (a), increased the tax from 6¼ percent of the compensation not in excess of $350 for any calendar month to 6¾ percent of the compensation not in excess of $400 for any calendar month for services rendered before , and to 7¼ percent for services rendered after , and substituted “after the month in which this provision was amended in 1959” for “after 1954” and for “after ” in six places, “not more than $400” for “not more than $350”, and “less than $400” for “less than $350”.

Pub. L. 86–28, § 201(d)(2)(C)Subsec. (b). , added subsec. (b).

Aug. 31, 19541954—Act , substituted “$350” for “$300” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–295Dec. 19, 2014section 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 2010 Amendment

Pub. L. 111–147Mar. 18, 2010section 101(e) of Pub. L. 111–147section 51 of this titleAmendment by applicable to compensation paid after , see , set out as a note under .

Effective Date of 2001 Amendment

section 203(b) of Pub. L. 107–90Dec. 31, 2001section 203(c) of Pub. L. 107–90section 3211 of this titleAmendment by applicable to calendar years beginning after , see , set out as a note under .

section 204(a) of Pub. L. 107–90Dec. 31, 2001section 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 Date of 1987 Amendment

Pub. L. 100–203, title IX, § 9032(b)Dec. 22, 1987101 Stat. 1330–296

Effective and Termination Dates of 1983 Amendment

section 211(b) of Pub. L. 98–76Dec. 31, 1983Jan. 1, 1985section 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 222 of Pub. L. 98–76Dec. 31, 1984section 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. 97–34Sept. 30, 1981section 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

section 1903(a)(9) of Pub. L. 94–455Dec. 31, 1976section 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. 94–93Aug. 9, 1975Aug. 9, 1975Aug. 9, 1975section 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 1974 Amendment

Pub. L. 93–445, title VI, § 604Oct. 16, 197488 Stat. 1361

Effective Date of 1973 Amendment

Pub. L. 93–69Oct. 1, 1973Oct. 1, 1973Oct. 1, 1973Mar. 8, 1973section 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 a 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. 89–699Oct. 30, 1966section 301(f) of Pub. L. 89–699section 3211 of this titleAmendment by effective with respect to man-hours, beginning with first month following , for which compensation is paid, see , set out as a note under .

Effective Date of 1965 Amendments

section 4 of Pub. L. 89–212Pub. L. 89–212section 5(c) of Pub. L. 89–212Sept. 30, 1965section 6 of Pub. L. 89–212section 3201 of this titleAmendment by effective only with respect to calendar months after the 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)(3) of Pub. L. 89–97Dec. 31, 1965section 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)(3) 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

Aug. 31, 1954Aug. 31, 1954section 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 .

Savings Provision

Pub. L. 115–141Mar. 23, 2018Mar. 23, 2018section 401(e) of Pub. L. 115–141section 23 of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .

January 1, 1982June 30, 1982Pub. L. 97–123Penalties and Interest Not Assessed for Failure To Make Timely Payment During Period , to , of Taxes Attributable to Amendments by

Jan. 1, 1982June 30, 1982section 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 subsec. (b) of 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 .

Payroll Credits for Emergency Sick or Family Leave and Special Rule for 2020

section 7001 of Pub. L. 116–127section 3111 of this titleFor allowance of credit against tax imposed by subsec. (a) of this section for certain sick leave wages paid by an employer applicable during part of 2020, see , set out as a note under .

section 7003 of Pub. L. 116–127section 3111 of this titleFor allowance of credit againt tax imposed by subsec. (a) of this section for certain family leave wages paid by an employer applicable during part of 2020, see , set out as a note under .

Pub. L. 116–127section 7005 of Pub. L. 116–127section 3111 of this titleFor provision that sick leave and family leave wages paid out by reason of certain provisions of not to be considered compensation for purposes of subsec. (a) of this section, see , set out as a note under .

Excise Taxes on Employers; Employees Covered by Certain Supplemental Pension Plans

Pub. L. 91–215, § 5(b)(2)Mar. 17, 197084 Stat. 71