Internal Revenue Code:Sec. 3211. Rate of tax
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter B - Tax on Employee Representatives
Statute
Sec. 3211. Rate of tax
(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).
Sources
(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, Sec.
105(b)(2), 111(c)(2), July 30, 1965, 79 Stat. 335, 342; Pub. L.
89-212, Sec. 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, Sec. 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, Sec. 203(a), 204(b), Dec.
21, 2001, 115 Stat. 891.)
Miscellaneous
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.
References
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.
