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Internal Revenue Code, § 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; Sept. 13, 1960, Pub. L. 86-778, title V, Sec. 523(a), 74 Stat. 980; Mar. 24, 1961, Pub. L. 87-6, Sec. 14(a), 75 Stat. 16; May 29, 1963, Pub. L. 88-31, Sec. 2(a), 77 Stat. 51; Aug. 10, 1970, Pub. L. 91-373, title III, Sec. 301(a), 84 Stat. 713; June 30, 1972, Pub. L. 92-329, Sec. 2(a), 86 Stat. 398; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1903(a)(11), 90 Stat. 1808; Oct. 20, 1976, Pub. L. 94-566, title II, Sec. 211(b), 90 Stat. 2676; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 271(b)(1), (c)(1), 96 Stat. 554, 555; Oct. 22, 1986, Pub. L. 99-514, title XVIII, Sec. 1899A(42), 100 Stat. 2960; Dec. 22, 1987, Pub. L. 100-203, title IX, Sec. 9153(a), 101 Stat. 1330-326; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11333(a), 104 Stat. 1388-470; Nov. 15, 1991, Pub. L. 102-164, title IV, Sec. 402; Pub. L. 103-66, title XIII, Sec. 13751, Aug. 10, 1993, 107 Stat. 312; Pub. L. 105-34, title IX, Sec. 1035, Aug. 5, 1997, 111 Stat 788; Dec. 19, 2007, Pub. L. 110-140, title XV, Sec. 1501(a), 121 Stat. 1492; Pub. L. 110-343, div. B, title IV, Sec. 404(a), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-92, Sec. 10, Nov. 6, 2009, 123 Stat. 2984; Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(37), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendments to Chapter
1976--Pub. L. 94-566, title I, 115(c)(4), Oct. 20, 1976, 90 Stat. 2671, substituted “services performed for nonprofit organizations or governmental entities" for “certain services performed for nonprofit organizations and for State hospitals and institutions of higher education” 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.
AMENDMENTS
2018 - Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(37), amended Sec. 3301 by substituing “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 1998 through 2010 and the first 6 months of calendar year 2011; or
“(2) 6.0 percent in the case of the remainder of calendar year 2011 and each calendar year thereafter;
“of the total wages (as defined in section 3306(b)) paid by him during the calendar year (or portion of the calendar year) with respect to employment (as defined in section 3306(c)).”
2009 - Par. (1). Pub. L. 111-92, Sec. 10(a)(1), substituted “through 2010 and the first 6 months of calendar year 2011” for “through 2009”.
Par. (2). Pub. L. 111-92, Sec. 10(a)(2), substituted “the remainder of calendar year 2011” for “calendar year 2010”.
Sec. 3301. Pub. L. 111-92, Sec. 10(a)(3), amended the material following par. (2) by inserting “(or portion of the calendar year)” after “during the calendar year”.
2008 - Par. (1). Pub. L. 110-343, Div. B, Sec. 404(a)(1), substituted “through 2009” for “through 2008”.
Par. (2). Pub. L. 110-343, Div, B, Sec. 404(a)(2), substituted “calendar year 2010” for “calendar year 2009”.
2007 - Par. (1). Pub. L. 110-140, Sec. 1501(a)(2), substituted “2008” for “2007”.
Par. (2). Pub. L. 110-140, Sec. 1501(a)(1), substituted “2009” for “2008”.
1997 - Par. (1). Pub. L. 105-34, Sec. 1035, substituted “2007” for “1997”.
Par. (2). Pub. L. 105-34, Sec. 1035, substituted “2008” for “1998”.
1993 - Par. (1). Pub. L. 103-66, Sec. 13751(1), amended par. (1) by substituting “1998” for “1996”.
Par. (2). Pub. L. 103-66, Sec. 13751(2), amended par. (2) by substituting “1999” for “1997”.
1991 - Par. (1). Pub. L. 102-164, Sec. 402(1), amended par. (1) by substituting “1996” for “1995”.
Par. (2). Pub. L. 102-164, Sec. 402(2) , amended par. (2) by substituting “1997” for “1996”.
1990 - Par. (1). Pub. L. 101-508, Sec. 11333(a)(1), substituted ‘1988 through 1995’ for ‘1988, 1989, and 1990’.
Par. (2). Pub. L. 101-508, Sec. 11333(a)(2), substituted ‘1996’ for ‘1991’.
1987 - Pars. (1), (2). Pub. L. 100-203 amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) read as follows:
‘(1) 6.2 percent, in the case of a calendar year beginning before the first calendar year after 1976, as of January 1 of which there is not a balance of repayable advances made to the extended unemployment compensation account (established by section 905(a) of the Social Security Act); or
‘(2) 6.0 percent, in the case of such first calendar year and each calendar year thereafter;’.
1986 - Par. (1). Pub. L. 99-514 substituted ‘unemployment’ for ‘unemployed’.
1982 - Par. (1). Pub. L. 97-248, Sec. 271(c)(1)(A), substituted ‘6.2 percent’ for ‘3.5 percent’.
Pub. L. 97-248, Sec. 271(b)(1), substituted ‘3.5 percent’ for ‘3.4 percent’.
Par. (2). Pub. L. 97-248, Sec. 271(c)(1)(B), substituted ‘6.0 percent’ for ‘3.2 percent’.
1976 - Pub. L. 94-566 substituted provisions imposing an excise tax equal to 3.4 percent, in the case of a calendar year beginning before the first calendar year after 1976, as of January 1 of which there is not a balance of repayable advances made to the extended unemployed compensation account (established by section 905(a) of the Social Security Act), or 3.2 percent, in the case of such first calendar year and each calendar year thereafter, of the total wages (as defined in section 3306(b)) paid by him during the calendar year with respect to employment (as defined in section 3306(c)), for provisions imposing an excise tax for the calendar year 1970 and each calendar year thereafter, with respect to having individuals in his employ, equal to 3.2 percent of the total wages (as defined in section 3306(b)) paid by him during the calendar year with respect to employment (as defined in section 3306(c)) and provisions that, in the case of wages paid during the calendar year 1973, the rate of such tax should be 3.28 percent in lieu of 3.2 percent.
Pub. L. 94-455 substituted ‘each calendar year’ for ‘the calendar year 1970 and each calendar year thereafter’ and struck out provisions relating to the rate of tax in the case of wages paid during the calendar year 1973.
1972 - Pub. L. 92-329 inserted provisions setting forth the rate of tax in the case of wages paid during the calendar year 1973.
1970 - Pub. L. 91-373 increased the rate from 3.1 percent to 3.2 percent and struck out provisions setting special rates for wages paid during 1962 and 1963.
1963 - Pub. L. 88-31 reduced the tax rate for the year 1963 from 3.5 percent to 3.35 percent.
1961 - Pub. L. 87-6 provided for a tax rate of 3.5 percent for calendar years 1962 and 1963.
1960 - Pub. L. 86-778 substituted ‘1961’ for ‘1955’ and ‘3.1 percent’ for ‘3 percent’.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(b)(37), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following Savings Provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Section 10(a) of Pub. L. 111-92 effective for wages paid after December 31, 2009.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Section 404(a) of Pub. L. 110-343, Div. B, effective for wages paid after December 31, 2008.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Section 1501(a) of Pub. L. 110-140 effective for wages paid after December 31, 2007.
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by Section 13751 of Pub. L. 103-66 effective on the date of the enactment of this Act [Enacted: Aug. 10, 1993].
EFFECTIVE DATE OF 1991 AMENDMENTS
Amendments by Section 402 of Pub. L. 102-164, effective on the date of the enactment of this Act [Enacted: Nov. 15, 1991].
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11333(b) of Pub. L. 101-508 provided that: ‘The amendments made by this section (amending this section) shall apply to wages paid after December 31, 1990.’
EFFECTIVE DATE OF 1987 AMENDMENT
Section 9153(b) of Pub. L. 100-203 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to wages paid on or after January 1, 1988.’
EFFECTIVE DATE OF 1982 AMENDMENT
Section 271(d)(1), (2), formerly 271(b)(1), (2), of Pub. L. 97-248, as redesignated by Pub. L. 98-601, Sec. 1(a), Oct. 30, 1984, 98 Stat. 3147, provided that:
‘(1) Subsections (a) and (b). - The amendments made by subsections (a) and (b) (amending this section, sections 3306 and 6157 of this title, and sections 1101 and 1105 of Title 42, The Public Health and Welfare) shall apply to remuneration paid after December 31, 1982.
‘(2) Subsection (c). - The amendments made by subsection (c) (amending this section, sections 3302 and 6157 of this title, and section 1101 of Title 42) shall apply to remuneration paid after December 31, 1984.’
EFFECTIVE DATE OF 1976 AMENDMENT
Section 211(d)(2) of Pub. L. 94-566 provided that: ‘The amendment made by subsection (b) (amending this section) shall apply to remuneration paid after December 31, 1976.’
EFFECTIVE DATE OF 1970 AMENDMENT
Section 301(a) of Pub. L. 91-373 provided that the amendment made by that section is effective with respect to remuneration paid after Dec. 31, 1969.
EFFECTIVE DATE OF 1960 AMENDMENT
Section 523(c) of Pub. L. 86-778 provided that: ‘The amendments made by subsection (a) (amending this section) shall apply only with respect to the calendar year 1961 and calendar years thereafter.’
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.