26 U.S.C. § 3322 — Definitions

Page 2827 TITLE 26—INTERNAL REVENUE CODE § 3322 Title 42, and enacting provisions set out as notes under sections 3301 to 3304, 3306, and 6157 of this title, section 77c of Title 15, and section 1101 of Title 42] may be cited as the ‘Employment Security Amendments of 1970’.’’ CHAPTER 23A—RAILROAD UNEMPLOYMENT REPAYMENT TAX Sec. 3321. Imposition of tax. 3322. Definitions. Editorial Notes AMENDMENTS 1990—Pub. L. 101–508, title XI, § 11704(a)(18), Nov. 5, 1990, 104 Stat. 1388–519, substituted ‘‘23A—’’ for ‘‘23A.’’ in chapter heading. 1988—Pub. L. 100–647, title VII, § 7106(a), Nov. 10, 1988, 102 Stat. 3772, reenacted chapter heading and item 3321 without change, substituted ‘‘Definitions’’ for ‘‘Taxable period’’ in item 3322, and omitted item 3323 ‘‘Other defi- nitions’’. § 3321. Imposition of tax (a) General rule There is hereby imposed on every rail em- ployer for each calendar month an excise tax, with respect to having individuals in his em- ploy, equal to 4 percent of the total rail wages paid by him during such month. (b) Tax on employee representatives (1) In general There is hereby imposed on the income of each employee representative a tax equal to 4 percent of the rail wages paid to him during the calendar month. (2) Determination of wages The rail wages of an employee representa- tive for purposes of paragraph (1) shall be de- termined in the same manner and with the same effect as if the employee organization by which such employee representative is em- ployed were a rail employer. (c) Termination if loans to railroad unemploy- ment fund repaid The tax imposed by this section shall not apply to rail wages paid on or after the 1st day of any calendar month if, as of such 1st day, there is— (1) no balance of transfers made before Octo- ber 1, 1985, to the railroad unemployment in- surance account under section 10(d) of the Railroad Unemployment Insurance Act, and (2) no unpaid interest on such transfers. (Added Pub. L. 98–76, title II, § 231(a), Aug. 12, 1983, 97 Stat. 426; amended Pub. L. 99–272, title XIII, § 13301(a), Apr. 7, 1986, 100 Stat. 325; Pub. L. 100–647, title I, § 1018(u)(17), title VIII, § 7106(a), Nov. 10, 1988, 102 Stat. 3590, 3772.) Editorial Notes REFERENCES IN TEXT Section 10(d) of the Railroad Unemployment Insur- ance Act, referred to in subsec. (c)(1), is classified to section 360(d) of Title 45, Railroads. AMENDMENTS 1988—Pub. L. 100–647, § 7106(a), amended section gen- erally, revising and restating provisions of subsecs. (a) and (b) and specifying imposition of 4 percent tax on rail wages rather than a tax based on the ‘‘applicable percentage’’ of rail wages, and in subsec. (c) sub- stituting provisions relating to termination if loans to railroad unemployment fund repaid for provisions re- lating to rates of tax. Pub. L. 100–647, § 1018(u)(17), added a period at end of par. (4). 1986—Subsec. (c). Pub. L. 99–272 amended subsec. (c) generally. Prior to amendment subsec. (c) read as fol- lows: ‘‘(c) RATE OF TAX.—For purposes of this section— ‘‘(1) FOR TAXABLE PERIOD JULY 1 THROUGH DECEMBER 31, 1986.—The applicable percentage for the taxable pe- riod beginning on July 1, 1986, and ending on Decem- ber 31, 1986, shall be 2 percent. ‘‘(2) SUBSEQUENT TAXABLE PERIODS.—The applicable percentage for any taxable period beginning after 1986 shall be the sum of— ‘‘(A) 2 percent, plus ‘‘(B) 0.3 percent for each preceding taxable period. In no event shall the applicable percentage exceed 5 percent.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by section 1018(u)(17) 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 sec- tion 1 of this title. Pub. L. 100–647, title VII, § 7106(d), Nov. 10, 1988, 102 Stat. 3774, provided that: ‘‘The amendments made by this section [amending this section and sections 3322, 6157, 6201, 6317, 6513, and 6601 of this title, omitting sec- tion 3323 of this title, and amending provisions set out as a note under section 231n of Title 45, Railroads], and the provisions of subsection (b) [set out below], shall apply to remuneration paid after December 31, 1988.’’ EFFECTIVE DATE Pub. L. 98–76, title II, § 231(d), Aug. 12, 1983, 97 Stat. 429, provided that: ‘‘The amendments made by this sec- tion [enacting this chapter and amending sections 6157, 6201, 6317, 6513, and 6601 of this title] shall apply to re- muneration paid after June 30, 1986.’’ CONTINUATION OF SURTAX RATE THROUGH 1990 Pub. L. 100–647, title VII, § 7106(b), Nov. 10, 1988, 102 Stat. 3773, provided that: ‘‘(1) IN GENERAL.—In the case of any calendar month beginning before January 1, 1991— ‘‘(A) there shall be substituted for ‘4 percent’ in subsections (a) and (b) of section 3321 of the 1986 Code the percentage equal to the sum of— ‘‘(i) 4 percent, plus ‘‘(ii) the surtax rate (if any) for such calendar month, and ‘‘(B) subsection (c) of such section shall not apply to so much of the tax imposed by such section as is attributable to the surtax rate. ‘‘(2) SURTAX RATE.—For purposes of paragraph (1), the surtax rate shall be— ‘‘(A) 3.5 percent for each month during a calendar year if, as of September 30, of the preceding calendar year, there was a balance of transfers (or unpaid in- terest thereon) made after September 30, 1985, to the railroad unemployment insurance account under sec- tion 10(d) of the Railroad Unemployment Insurance Act [45 U.S.C. 360(d)], and ‘‘(B) zero for any other calendar month.’’ § 3322. Definitions (a) Rail employer For purposes of this chapter, the term ‘‘rail employer’’ means any person who is an em- Page 2828 TITLE 26—INTERNAL REVENUE CODE [§ 3323 1 Editorially supplied. Section 3405 added by Pub. L. 97–248 without corresponding amendment of analysis. ployer as defined in section 1 of the Railroad Un- employment Insurance Act. (b) Rail wages For purposes of this chapter, the term ‘‘rail wages’’ means, with respect to any calendar month, so much of the remuneration paid during such month which is subject to contributions under section 8(a) of the Railroad Unemploy- ment Insurance Act. (c) Employee representative For purposes of this chapter, the term ‘‘em- ployee representative’’ has the meaning given such term by section 1 of the Railroad Unem- ployment Insurance Act. (d) Certain rules made applicable For purposes of this chapter, rules similar to the rules of section 3307 and 3308 shall apply. (Added Pub. L. 98–76, title II, § 231(a), Aug. 12, 1983, 97 Stat. 427; amended Pub. L. 99–272, title XIII, § 13301(d), Apr. 7, 1986, 100 Stat. 327; Pub. L. 100–647, title VII, § 7106(a), Nov. 10, 1988, 102 Stat. 3773.) Editorial Notes REFERENCES IN TEXT Section 1 of the Railroad Unemployment Insurance Act, referred to in subsecs. (a) and (c), is classified to section 351 of Title 45, Railroads. Section 8(a) of the Railroad Unemployment Insurance Act, referred to in subsec. (b), is classified to section 358(a) of Title 45. AMENDMENTS 1988—Pub. L. 100–647 amended section generally, sub- stituting present provisions for former provisions relat- ing to taxable period, which had provided, in subsec. (a), for a general rule and, in subsec. (b), for earlier ter- mination if loans to rail unemployment fund repaid. 1986—Subsec. (a)(2), (3). Pub. L. 99–272, § 13301(d)(1), struck out ‘‘and before 1990, and’’ after ‘‘1986’’ in par. (2) and struck out par. (3) relating to the period beginning on Jan. 1, 1990, and ending on Sept. 30, 1990. Subsec. (b). Pub. L. 99–272, § 13301(d)(2), substituted ‘‘The basic rate under section 3321(c)(1)(A) of the tax imposed by section 3321 shall not apply’’ for ‘‘The tax imposed by this chapter shall not apply’’ in introduc- tory provision, and inserted ‘‘made before October 1, 1985,’’ in par. (1). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 applicable to remu- neration paid after Dec. 31, 1988, see section 7106(d) of Pub. L. 100–647, set out as a note under section 3321 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 ‘‘rail wages’’ 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. [§ 3323. Omitted] Section, added Pub. L. 98–76, title II, § 231(a), Aug. 12, 1983, 97 Stat. 427; amended Pub. L. 99–272, title XIII, § 13301(b), Apr. 7, 1986, 100 Stat. 326, contained defini- tions, prior to the general amendment of this chapter by Pub. L. 100–647, § 7106(a). See section 3322 of this title. CHAPTER 24—COLLECTION OF INCOME TAX AT SOURCE ON WAGES Sec. 3401. Definitions. 3402. Income tax collected at source. 3403. Liability for tax. 3404. Return and payment by governmental em- ployer. 3405. Special rules for pensions, annuities, and cer- tain other deferred income.1 3406. Backup withholding. [3451 to 3456. Repealed.] Editorial Notes AMENDMENTS 1983—Pub. L. 98–67, title I, §§ 102(a), 104(d)(4), Aug. 5, 1983, 97 Stat. 369, 380, added item 3406 and repealed amendments made by Pub. L. 97–248. See 1982 Amend- ment note below. 1982—Pub. L. 97–248, title III, §§ 307(b)(4), 308(a), Sept. 3, 1982, 96 Stat. 590, 591, provided that, applicable to payments of interest, dividends, and patronage divi- dends paid or credited after June 30, 1983, the caption of chapter 24 is amended by striking out ‘‘ON WAGES’’, items for subchapters A and B are added in analysis, and heading ‘‘Subchapter A—Withholding From Wages’’ is added. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. § 3401. Definitions (a) Wages For purposes of this chapter, the term ‘‘wages’’ means all remuneration (other than fees paid to a public official) for services per- formed by an employee for his employer, includ- ing the cash value of all remuneration (includ- ing benefits) paid in any medium other than cash; except that such term shall not include re- muneration paid— (1) for active service performed in a month for which such employee is entitled to the ben- efits of section 112 (relating to certain combat zone compensation of members of the Armed Forces of the United States) to the extent re- muneration for such service is excludable from gross income under such section, (2) for agricultural labor (as defined in sec- tion 3121(g)) unless the remuneration paid for such labor is wages (as defined in section 3121(a)), (3) for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, (4) for service not in the course of the em- ployer’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $50 or more and such service is performed by an individual who is regularly employed by such