26 U.S.C. § 3241 — Determination of tier 2 tax rate based on

Page 2760 TITLE 26—INTERNAL REVENUE CODE § 3232 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 Rail- road 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 amend- ments made by such subsection (b) except to the extent that the applicable period of limitation for the assess- ment of tax and the filing of a claim for credit or re- fund 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 with- in 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 ex- pired 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 re- spect to payment made prior to Aug. 9, 1975, the em- ployee 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 sec- tion 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 Pub. L. 90–624, § 4(a), Oct. 22, 1968, 82 Stat. 1316, as amended by Pub. L. 99–514, § 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 over- payment of any tax imposed by chapter 22 of the Inter- nal 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 Rev- enue Code of 1986 which is attributable to the amend- ment made by the first section of this Act shall be ap- propriately adjusted for any lump-sum payment which has been made under section 5(f)(2) of the Railroad Re- tirement Act of 1937 [section 228e(f)(2) of Title 45] be- fore 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 re- spect 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 en- acted 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 pre- scribed under subsec. (e)(4) of this section prescribe procedures under which, if (with respect to any em- ployee) the third party promptly (A) withholds the em- ployee 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 compensa- tion involved, the employer (and not the third party) shall be liable for the employer portion of the taxes in- volved 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 sec- tion 3(d) of Pub. L. 97–123, set out as a note under sec- tion 3121 of this title. EXCLUSION FROM WAGES AND COMPENSATION OF RE- FUNDS REQUIRED FROM EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS For purposes of this chapter, the term ‘‘compensa- tion’’ shall not include the amount of any refund re- quired 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. § 3232. Court jurisdiction 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 proc- ess within its jurisdiction to comply with any obligations imposed on such employee, em- ployer, 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 pos- sessed 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. (Aug. 16, 1954, ch. 736, 68A Stat. 437; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. § 3233. Short title This chapter may be cited as the ‘‘Railroad Retirement Tax Act.’’ (Aug. 16, 1954, ch. 736, 68A Stat. 438.) Subchapter E—Tier 2 Tax Rate Determination Sec. 3241. Determination of tier 2 tax rate based on av- erage account benefits ratio. § 3241. Determination of tier 2 tax rate based on average account benefits ratio (a) In general For purposes of sections 3201(b), 3211(b), and 3221(b), the applicable percentage for any cal- Page 2761 TITLE 26—INTERNAL REVENUE CODE § 3301 endar year is the percentage determined in ac- cordance with the table in subsection (b). (b) Tax rate schedule Average account benefits ratio Applicable percentage for sections 3211(b) and 3221(b) Applicable percentage for section 3201(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 ‘‘aver- age account benefits ratio’’ means, with re- spect to any calendar year, the average deter- mined by the Secretary of the account bene- fits ratios for the 10 most recent fiscal years ending before such calendar year. If the amount determined under the preceding sen- tence 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 ‘‘ac- count 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 Rail- road Retirement Investment Trust (and for years before 2002, the Social Security Equiva- lent Benefits Account) as of the close of such fiscal year by the total benefits and adminis- trative expenses paid from the Railroad Re- tirement Account and the National Railroad Retirement Investment Trust during such fis- cal 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. (Added Pub. L. 107–90, title II, § 204(d), Dec. 21, 2001, 115 Stat. 892.) Statutory Notes and Related Subsidiaries 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. CHAPTER 23—FEDERAL UNEMPLOYMENT TAX ACT Sec. 3301. Rate of tax. Sec. 3302. Credits against tax. 3303. Conditions of additional credit allowance. 3304. Approval of State laws. 3305. Applicability of State law. 3306. Definitions. 3307. Deductions as constructive payments. 3308. Instrumentalities of the United States. 3309. State law coverage of services performed for nonprofit organizations or governmental entities. 3310. Judicial review. 3311. Short title. Editorial Notes AMENDMENTS 1976—Pub. L. 94–566, title I, § 115(c)(4), Oct. 20, 1976, 90 Stat. 2671, substituted ‘‘services performed for non- profit organizations or governmental entities’’ for ‘‘certain services performed for nonprofit organizations and for State hospitals and institutions of higher edu- cation’’ in item 3309. 1970—Pub. L. 91–373, title I, §§ 104(b)(2), 131(b)(3), Aug. 10, 1970, 84 Stat. 699, 705, added items 3309 and 3310 and redesignated former item 3309 as 3311. 1960—Pub. L. 86–778, title V, § 531(d)(2), Sept. 13, 1960, 74 Stat. 984, added item 3308 and redesignated former item 3308 as 3309. § 3301. Rate of tax There is hereby imposed on every employer (as defined in section 3306(a)) for each calendar year an excise tax, with respect to having individuals in his employ, equal to 6 percent of the total wages (as defined in section 3306(b)) paid by such employer during the calendar year with respect to employment (as defined in section 3306(c)). (Aug. 16, 1954, ch. 736, 68A Stat. 439; Pub. L. 86–778, title V, § 523(a), Sept. 13, 1960, 74 Stat. 980; Pub. L. 87–6, § 14(a), Mar. 24, 1961, 75 Stat. 16; Pub. L. 88–31, § 2(a), May 29, 1963, 77 Stat. 51; Pub. L. 91–373, title III, § 301(a), Aug. 10, 1970, 84 Stat. 713; Pub. L. 92–329, § 2(a), June 30, 1972, 86 Stat. 398; Pub. L. 94–455, title XIX, § 1903(a)(11), Oct. 4, 1976, 90 Stat. 1808; Pub. L. 94–566, title II, § 211(b), Oct. 20, 1976, 90 Stat. 2676; Pub. L. 97–248, title II, § 271(b)(1), (c)(1), Sept. 3, 1982, 96 Stat. 554, 555; Pub. L. 99–514, title XVIII, § 1899A(42), Oct. 22, 1986, 100 Stat. 2960; Pub. L. 100–203, title IX, § 9153(a), Dec. 22, 1987, 101 Stat. 1330–326; Pub. L. 101–508, title XI, § 11333(a), Nov. 5, 1990, 104 Stat. 1388–470; Pub. L. 102–164, title IV, § 402, Nov. 15, 1991, 105 Stat. 1061; Pub. L. 103–66, title XIII, § 13751, Aug. 10, 1993, 107 Stat. 664; Pub. L. 105–34, title X, § 1035, Aug. 5, 1997, 111 Stat. 937; Pub. L. 110–140, title XV, § 1501(a), Dec. 19, 2007, 121 Stat. 1800; Pub. L. 110–343, div. B, title IV, § 404(a), Oct. 3, 2008, 122 Stat. 3860; Pub. L. 111–92, § 10(a), Nov. 6, 2009, 123 Stat. 2988; Pub. L. 115–141, div. U, title IV, § 401(b)(37), Mar. 23, 2018, 132 Stat. 1204.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–141 substituted ‘‘equal to 6 percent of the total wages (as defined in section 3306(b)) paid by such employer during the calendar year with respect to employment (as defined in section 3306(c)).’’ for ‘‘equal to— ‘‘(1) 6.2 percent in the case of calendar years 1988 through 2010 and the first 6 months of calendar year 2011; or ‘‘(2) 6.0 percent in the case of the remainder of cal- endar year 2011 and each calendar year thereafter;