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Internal Revenue Code, § 6413. Special Rules Applicable To Certain Employment Taxes

I.R.C. § 6413(a) Adjustment Of Tax
I.R.C. § 6413(a)(1) General Rule
If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid with respect to any payment of remuneration, proper adjustments, with respect to both the tax and the amount to be deducted, shall be made, without interest, in such manner and at such times as the Secretary may by regulations prescribe.
I.R.C. § 6413(a)(2) United States As Employer
For purposes of this subsection, in the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall be deemed a separate employer.
I.R.C. § 6413(a)(3) Guam Or American Samoa As Employer
For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.
I.R.C. § 6413(a)(4) District Of Columbia As Employer
For purposes of this subsection, in the case of remuneration received during any calendar year from the District of Columbia or any instrumentality which is wholly owned thereby, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125 shall be deemed a separate employer.
I.R.C. § 6413(a)(5) States And Political Subdivisions As Employer
For purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 shall be deemed a separate employer.
I.R.C. § 6413(b) Overpayments Of Certain Employment Taxes
If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid or deducted with respect to any payment of remuneration and the overpayment cannot be adjusted under subsection (a) of this section, the amount of the overpayment shall be refunded in such manner and at such times (subject to the statute of limitations properly applicable thereto) as the Secretary may by regulations prescribe.
I.R.C. § 6413(c) Special Refunds
I.R.C. § 6413(c)(1) In General
If by reason of an employee receiving wages from more than one employer during a calendar year the wages received by him during such year exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective with respect to such year, the employee shall be entitled (subject to the provisions of section 31(b)) to a credit or refund of any amount of tax, with respect to such wages, imposed by section 3101(a) or section 3201(a) (to the extent of so much of the rate applicable under section 3201(a) as does not exceed the rate of tax in effect under section 3101(a)), or by both such sections, and deducted from the employee's wages (whether or not paid to the Secretary), which exceeds the tax with respect to the amount of such wages received in such year which is equal to such contribution and benefit base. The term “wages” as used in this paragraph shall, for purposes of this paragraph, include “compensation” as defined in section 3231(e).
I.R.C. § 6413(c)(2) Applicability In Case Of Federal And State Employees, Employees Of Certain Foreign Affiliates, And Governmental Employees In Guam, American Samoa, And The District Of Columbia
I.R.C. § 6413(c)(2)(A) Federal Employees
In the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall, for purposes of this subsection, be deemed a separate employer; and the term “wages" includes for purposes of this subsection the amount, not to exceed an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year with respect to which such contribution and benefit base is effective, determined by each such head or agent as constituting wages paid to an employee.
I.R.C. § 6413(c)(2)(B) State Employees
For purposes of this subsection, in the case of remuneration received during any calendar year, the term “wages” includes such remuneration for services covered by an agreement made pursuant to section 218 of the Social Security Act as would be wages if such services constituted employment; the term “employer” includes a State or any political subdivision thereof, or any instrumentality of any one or more of the foregoing; the term “tax” or “tax imposed by section 3101(a)“ includes, in the case of services covered by an agreement made pursuant to section 218 of the Social Security Act, an amount equivalent to the tax which would be imposed by section 3101(a), if such services constituted employment as defined in section 3121; and the provisions of this subsection shall apply whether or not any amount deducted from the employee's remuneration as a result of an agreement made pursuant to section 218 of the Social Security Act has been paid to the Secretary.
I.R.C. § 6413(c)(2)(C) Employees Of Certain Foreign Affiliates
For purposes of paragraph (1) of this subsection, the term “wages” includes such remuneration for services covered by an agreement made pursuant to section 3121(l) as would be wages if such services constituted employment; the term “employer” includes any American employer which has entered into an agreement pursuant to section 3121(l); the term “tax” or “tax imposed by section 3101(a),” includes, in the case of services covered by an agreement entered into pursuant to section 3121(l), an amount equivalent to the tax which would be imposed by section 3101(a), if such services constituted employment as defined in section 3121; and the provisions of paragraph (1) of this subsection shall apply whether or not any amount deducted from the employee's remuneration as a result of the agreement entered into pursuant to section 3121(l) has been paid to the Secretary.
I.R.C. § 6413(c)(2)(D) Governmental Employees In Guam
In the case of remuneration received from the Government of Guam or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of Guam and each agent designated by him who makes a return pursuant to section 3125(b) shall, for purposes of this subsection, be deemed a separate employer.
I.R.C. § 6413(c)(2)(E) Governmental Employees In American Samoa
In the case of remuneration received from the Government of American Samoa or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of American Samoa and each agent designated by him who makes a return pursuant to section 3125(c) shall, for purposes of this subsection, be deemed a separate employer.
I.R.C. § 6413(c)(2)(F) Governmental Employees In The District Of Columbia
In the case of remuneration received from the District of Columbia or any instrumentality wholly owned thereby, during any calendar year, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125(d) shall, for purposes of this subsection, be deemed a separate employer.
I.R.C. § 6413(c)(2)(G) Employees Of States And Political Subdivisions
In the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125(a) shall, for purposes of this subsection, be deemed a separate employer.
I.R.C. § 6413(d) Refund Or Credit Of Federal Unemployment Tax
Any credit allowable under section 3302, to the extent not previously allowed, shall be considered an overpayment, but no interest shall be allowed or paid with respect to such overpayment.
(Aug. 16, 1954, ch. 736, 68A Stat. 797; Sept. 1, 1954, ch. 1206, title II, Sec. 202(a)(1), (b)(1)-(3), 68 Stat. 1089, 1090; Aug. 28, 1958, Pub. L. 85-840, title IV, Sec. 402(d), 72 Stat. 1043; Sept. 13, 1960, Pub. L. 86-778, title I, Sec. 103(r)(2)-(4), 74 Stat. 940; July 30, 1965, Pub. L. 89-97, title III, Sec. 317(e), (f), 320(b)(5), (6), 79 Stat. 389, 390, 393, 394; Jan. 2, 1968, Pub. L. 90-248, title I, Sec. 108(b)(5), (6), title V, Sec. 502(a), 81 Stat. 835, 934; Mar. 17, 1971, Pub. L. 92-5, title II, Sec. 203(b)(5), (6), 85 Stat. 11; July 1, 1972, Pub. L. 92-336, title II, Sec. 203(b)(5), (6), 86 Stat. 419, 420; Oct. 30, 1972, Pub. L. 92-603, title I, Sec. 144(c), 86 Stat. 1370; July 9, 1973, Pub. L. 93-66, title II, Sec. 203(b)(5), (6), 87 Stat. 153; Dec. 31, 1973, Pub. L. 93-233, Sec. 5(b)(5), (6), 87 Stat. 954; Oct. 16, 1974, Pub. L. 93-445, title V, Sec. 502, 88 Stat. 1360; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1906(a)(23)(A), (B)(i), (ii), (C), (D), (b)(13)(A), 90 Stat. 1826, 1827, 1834; Sept. 3, 1982, Pub. L. 97-248, title III, Sec. 302(c), 307(a)(10)-(12), 308(a), 96 Stat. 586, 589-591; Apr. 20, 1983, Pub. L. 98-21, title III, Sec. 321(e)(4), 97 Stat. 120; Aug. 5, 1983, Pub. L. 98-67, title I, Sec. 102(a), 97 Stat. 369; Apr. 7, 1986, Pub. L. 99-272, title XIII, Sec. 13205(a)(2)(E), 100 Stat. 315; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11331(d)(1), 104 Stat. 1388-468; Pub. L. 103-66, title XIII, Sec. 13207(d), Aug. 10, 1993, 107 Stat. 312.)
BACKGROUND NOTES
AMENDMENTS
1993 - Subsec. (c)(1). Pub. L. 103-66, Sec. 13207(d)(1), amended par. (1) by substituting “section 3101(a) or section 3201(a) (to the extent of so much of the rate applicable under section 3201(a) as does not exceed the rate of tax in effect under section 3101(a))” for “section 3101 or section 3201”.
Subsec. (c)(2)(B)-(C). Pub. L. 103-66, Sec. 13207(d)(2), amended subpar. (B) and (C) by substituting “section 3101(a)” for “section 3101” each place it appears.
Subsec. (c)(3). Pub. L. 103-66, Sec. 13207(d)(3), amended subsec. (c) by striking par. (3). Before being struck, it read as follows:
“(3) Separate Application For Hospital Insurance Taxes.—In applying this subsection with respect to--
“(A) the tax imposed by section 3101(b) (or any amount equivalent to such tax), and
“(B) so much of the tax imposed by section 3201 as is determined at a rate not greater than the rate in effect under section 3101(b),
“the applicable contribution base determined under section 3121(x)(2) for any calendar year shall be substituted for ‘contribution and benefit base (as determined under section 230 of the Social Security Act)' each place it appears.”
1990 - Subsec. (c)(3). Pub. L. 101-508 substituted heading for one which read: ‘Applicability with respect to compensation of employees subject to the Railroad Retirement Tax Act’ and amended text generally. Prior to amendment, text read as follows: ‘In the case of any individual who, during any calendar year, receives wages from one or more employers and also receives compensation which is subject to the tax imposed by section 3201 or 3211, such compensation shall, solely for purposes of applying paragraph (1) with respect to the tax imposed by section 3101(b), be treated as wages received from an employer with respect to which the tax imposed by section 3101(b) was deducted.’
1986 - Subsec. (a)(5). Pub. L. 99-272, Sec. 13205(a)(2)(E)(i), added par. (5).
Subsec. (c)(2)(D) to (F). Pub. L. 99-272, Sec. 13205(a)(2)(E)(ii)(I), substituted ‘3125(b)’, ‘3125(c)’, and ‘3125(d)’ for ‘3125(a)’, ‘3125(b)’, and ‘3125(c)’, respectively, in subpars. (D), (E), and (F), respectively.
Subsec. (c)(2)(G). Pub. L. 99-272, Sec. 13205(a)(2)(E)(ii)(II), added subpar. (G).
1983 - Pub. L. 98-67 repealed amendments made by Pub. L. 97-248.
See 1982 Amendment note below.
Subsec. (c)(2). Pub. L. 98-21, Sec. 321(e)(4)(B), substituted ‘foreign affiliates’ for ‘foreign corporations’ in heading.
Subsec. (c)(2)(C). Pub. L. 98-21, Sec. 321(e)(4)(A), substituted ‘foreign affiliates’ for ‘foreign corporations’ in heading and, in text, substituted ‘American employer’ for ‘domestic corporation’.
1982 - Catchline and subsecs. (a)(1), (b), (c)(1). Pub. L. 97-248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, the section catchline is amended by substituting ‘taxes under subtitle C’ for ‘employment taxes’; subsec. (a)(1) is amended by substituting ‘3402 or 3451 is paid with respect to any payment of remuneration, interest, dividends, or other amounts,’ for ‘or 3402 is paid with respect to any payment of remuneration,’; subsec. (b) is amended by striking out ‘of certain employment taxes’ from heading, and by substituting ‘3402 or 3451 is paid or deducted with respect to any payment of remuneration, interest, dividends, or other amount’; and subsec. (c)(1) is amended by substituting ‘section 31(c)’ for ‘section 31(b)’. Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (Sec. 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.
1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(a)(23)(A), substituted ‘Mayor of the District of Columbia and each agent designated by him’ for ‘Commissioners of the District of Columbia and each agent designated by them’.
Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (c)(1). Pub. L. 94-455, Sec. 1906(a)(23)(B)(i), struck out ‘or his delegate’ after ‘Secretary’ and substituted general provision for entitlement to credit or refund of employment taxes deducted from an employee receiving wages from more than one employer during a calendar year and in excess of employment taxes with respect to amount of wages received in the calendar year equal to the contribution and benefit base determined under section 230 of the Social Security Act and effective with respect to such calendar year for prior specific provisions for such credit or refund of employment taxes deducted in excess of prescribed amount for base limits and applicable periods set forth below: ---------------------------------------------------------------------
 

Amount          After Calendar Year    Prior to Calendar Year ---------------------------------------------------------------------
$3,600                 1950                   1955
$4,200                 1954                   1959
$4,800                 1958                   1966
$6,600                 1965                   1968
$7,800                 1967                   1972
$9,000                 1971                   1973
$10,800                1972                   1974
$13,200                1973                   1975
------------------------------- and amount equal to the contribution and benefit base determined under section 230 of the Social Security Act and effective with respect to calendar year after calendar year 1974, and thereafter.
Subsec. (c)(2)(A). Pub. L. 94-455, Sec. 1906(a)(23)(B)(ii), substituted ‘the amount, not to exceed an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year’ for ‘the amount, not to exceed $3,600 for the calendar year 1951, 1952, 1953, or 1954, $4,200 for the calendar year 1955, 1956, 1957, or 1958, $4,800 for the calendar year 1959, 1960, 1961, 1962, 1963, 1964, or 1965, $6,600 for the calendar year 1966 or 1967, $7,800 for the calendar year 1968, 1969, 1970, or 1971, $9,000 for the calendar year 1972, $10,800 for the calendar year 1973, $13,200 for the calendar year 1974, or an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year after 1974’ before ‘with respect to which such contribution and benefit base is effective’.
Subsec. (c)(2)(C). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (c)(2)(F). Pub. L. 94-455, Sec. 1906(a)(23)(C), substituted ‘Mayor of the District of Columbia and each agent designated by him’ for ‘Commissioners of the District of Columbia and each agent designated by them’.
Subsec. (c)(3). Pub. L. 94-455, Sec. 1906(a)(23)(D), struck out ‘after 1967’ after ‘calendar year’.
1974 - Subsec. (c)(1). Pub. L. 93-445 inserted ‘or section 3201, or by both such sections’ after ‘section 3101’ and inserted provision that for purposes of subsec. (c)(1) the term ‘wages’ include compensation as defined in section 3231(e).
1973 - Subsec. (c)(1). Pub. L. 93-233, Sec. 5(b)(5), substituted ‘$13,200’ for ‘$12,600’ whenever appearing.
Pub. L. 93-66, Sec. 203(b)(5), substituted ‘$12,600’ for ‘$12,000’ wherever appearing.
Subsec. (c)(2)(A). Pub. L. 93-233, Sec. 5(b)(6), substituted ‘$13,200’ for ‘$12,600’.
Pub. L. 93-66, Sec. 203(b)(6), substituted ‘$12,600’ for ‘$12,000’.
1972 - Subsec. (c)(1). Pub. L. 92-336, Sec. 203(b)(5), inserted ‘and prior to the calendar year 1973’ after ‘after the calendar year 1971’, inserted provisions of cls. (F) to (H), and provisions relating to wages received after 1971 and before 1973, after 1972 and before 1974, after 1973 and before 1975, and the calendar year after 1974.
Subsec. (c)(2)(A). Pub. L. 92-336, Sec. 203(b)(6), as amended by Pub. L. 92-603, Sec. 144(c), eff. July 1, 1972, inserted provisions relating to amounts to be included within the term ‘wages’ for the calendar years 1972, 1973, 1974, or any calendar year after 1974.
1971 - Subsec. (c)(1). Pub. L. 92-5, Sec. 203(b)(5), inserted ‘and prior to the calendar year 1972’ after ‘after the calendar year 1967’, ‘or (E) during any calendar year after the calendar year 1971, the wages received by him during such year exceed $9,000,’ after ‘exceed $7,800,’ and inserted before the period at end of subpar. (1) ‘and before 1972, or which exceeds the tax with respect to the first $9,000 of such wages received in such calendar year after 1971’.
Subsec. (c)(2)(A). Pub. L. 92-5, Sec. 203(b)(6), substituted ‘$7,800 for the calendar year 1968, 1969, 1970, or 1971, or $9,000 for any calendar year after 1971’ for ‘or $7,800 for any calendar year after 1967’.
1968 - Subsec. (c)(1). Pub. L. 90-248, Sec. 108(b)(5), inserted ‘and prior to the calendar year 1968’ after ‘the calendar year 1965’, ‘or (D) during any calendar year after the calendar year 1967, the wages received by him during such year exceed $7,800,’ after ‘exceed $6,600,’, and ‘and before 1968, or which exceeds the tax with respect to the first $7,800 of such wages received in such calendar year after 1967’.
Subsec. (c)(2)(A). Pub. L. 90-248, Sec. 108(b)(6), substituted ‘$6,600 for the calendar year 1966 or 1967, or $7,800 for any calendar year after 1967’ for ‘or $6,600 for any calendar year after 1965’.
Subsec. (c)(3). Pub. L. 90-248, Sec. 502(a), added par. (3).
1965 - Subsec. (a)(4). Pub. L. 89-97, Sec. 317(e), added par. (4).
Subsec. (c)(1). Pub. L. 89-97, Sec. 320(b)(5), inserted ‘and prior to the calendar year 1966’ after ‘the calendar year 1958’, ‘or (C) during any calendar year after the calendar year 1965, the wages received by him during such year exceed $6,600’ after ‘exceed $4,800,’, and ‘and before 1966, or which exceeds the tax with respect to the first $6,600 of such wages received in such calendar year after 1965’ before the period at end of par.
Subsec. (c)(2)(A). Pub. L. 89-97, Sec. 320(b)(6), substituted ‘$4,800 for the calendar year 1959, 1960, 1961, 1962, 1963, 1964, or 1965, or $6,600 for any calendar year after 1965’ for ‘or $4,800 for any calendar year after 1958’.
Subsec. (c)(2)(F). Pub. L. 89-97, Sec. 317(f)(1), added subpar. (F) and inserted reference to the District of Columbia in heading.
1960 - Subsec. (a)(3). Pub. L. 86-778, Sec. 103(r)(2), added par. (3).
Subsec. (c)(2). Pub. L. 86-778, Sec. 103(r) (3), (4), inserted governmental employees in Guam and American Samoa in heading, and added subpars. (D) and (E).
1958 - Subsec. (c)(1). Pub. L. 85-840, Sec. 402(d)(1), conformed the special-refund provisions to the increase made by Pub. L. 85-840, in the limitation on wages from $4,200 to $4,800 for calendar years after 1958.
Subsec. (c)(2)(A). Pub. L. 85-840, Sec. 402(d)(2), substituted ‘$4,200 for the calendar year 1955, 1956, 1957, or 1958, or $4,800 for any calendar year after 1958’ for ‘$4,200 for any calendar year after 1954’.
1954 - Subsec. (c)(1). Act Sept. 1, 1954, Sec. 202(a)(1), conformed the special-refund provisions to the increase made by said act Sept. 1, 1954, in the limitation on wages from $3,600 to $4,200 for calendar years after 1954.
Subsec. (c)(2). Act Sept. 1, 1954, Sec. 202(b)(1), inserted ‘and employees of certain foreign corporations’ in heading.
Subsec. (c)(2)(A). Act Sept. 1, 1954, Sec. 202(b)(2), substituted ‘$3,600 for the calendar year 1951, 1952, 1953, or 1954, or $4,200 for any calendar year after 1954’ for ‘$3,600’.
Subsec. (c)(2)(C). Act Sept. 1, 1954, Sec. 202(b)(3), added subpar. (C).
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by Pub. L. 103-66 applicable to 1994 and later calendar years.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 applicable to 1991 and later calendar years, see section 11331(e) of Pub. L. 101-508, set out as a note under section 1402 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-272 applicable to services performed after Mar. 31, 1986, see section 13205(d)(1) of Pub. L. 99-272, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-21 applicable to agreements entered into after Apr. 20, 1983, except that at election of any American employer such amendment shall also apply to any agreement entered into on or before Apr. 20, 1983, see section 321(f) of Pub. L. 98-21, set out as a note under section 406 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1906(a)(23)(A), (C), (D), (b)(13)(A) of Pub. L. 94-455 effective on first day of first month which begins more than ninety days after Oct. 4, 1976, see section 1906(d)(1) of Pub. l. 94-455, set out as a note under section 6013 of this title.
Section 1906(a)(23)(B)(iii) of Pub. L. 94-455 provided that: ‘The amendments made by clauses (i) and (ii) (amending this section) shall apply with respect to remuneration paid after December 31, 1976.’
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-445 effective Jan. 1, 1975, and applicable only with respect to compensation paid for services rendered on or after that date, see section 604 of Pub. L. 93-445, set out as a note under section 3221 of this title.
EFFECTIVE DATE OF 1973 AMENDMENTS
Amendment by Pub. L. 93-233 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 5(e) of Pub. L. 93-233, set out as a note under section 409 of Title 42, The Public Health and Welfare.
Amendment by Pub. L. 93-66 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 203(e) of Pub. L. 93-66, set out as a note under section 409 of Title 42.
EFFECTIVE DATE OF 1972 AMENDMENT
Amendment by Pub. L. 92-336, as amended by Pub. L. 92-603, Sec. 144(c), applicable only with respect to remuneration paid after Dec. 1972, see section 203(c) of Pub. L. 92-336, set out as a note under section 409 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 92-5 applicable only with respect to renumeration paid after Dec. 1971, see section 203(c) of Pub. L. 92-5, set out as a note under section 409 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by section 108(b)(5), (6) of Pub. L. 90-248 applicable only with respect to remuneration paid after December 1967, see section 108(c) of Pub. L. 90-248, set out as a note under section 409 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 317(e), (f) of Pub. L. 89-97 applicable with respect to services performed after the quarter ending September 30, 1965, and after the quarter in which the Secretary of the Treasury receives a certification from the Commissioners (now Mayor) of the District of Columbia expressing their desire to have the insurance system established by sections 401 et seq. and 1395c et seq. of Title 42, The Public Health and Welfare, extended to the officers and employees coming under the provisions of such amendments, see section 317(g) of Pub. L. 89-97, set out as a note under section 410 of Title 42.
Amendment by section 320(b)(5), (6) of Pub. L. 89-97 applicable with respect to remuneration paid after December 1965, see section 320(c) of Pub. L. 89-97, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-778 applicable only with respect to (1) service in the employ of the Government of Guam or any political subdivision thereof, or any instrumentality of any one or more of the foregoing wholly owned thereby, which is performed after 1960 and after the calendar quarter in which the Secretary of the Treasury receives a certification by the Governor of Guam that legislation has been enacted by the Government of Guam expressing its desire to have the insurance system established by title II of the Social Security Act, section 401 et seq. of Title 42, The Public Health and Welfare, extended to the officers and employees of such Government and such political subdivisions and instrumentalities, and (2) service in the employ of the Government of American Samoa or any political subdivision thereof or any instrumentality of any one or more of the foregoing wholly owned thereby, which is performed after 1960 and after the calendar quarter in which the Secretary of the Treasury receives a certification by the Governor of American Samoa that the Government of American Samoa desires to have the insurance system established by title II of the Social Security Act, section 401 et seq. of Title 42, extended to the officers and employees of such Government and such political subdivisions and instrumentalities, see section 103(v)(1) of Pub. L. 86-778, set out as a note under section 402 of Title 42.
EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by act Sept. 1, 1954, applicable only with respect to remuneration paid after 1954, see section 202(d) of act Sept. 1, 1954, set out as a note under section 1401 of this title.
PAYROLL CREDIT FOR REQUIRED PAID SICK LEAVE.
Sec. 7001 of Pub. L. 116-127 provided:
“SEC. 7001. PAYROLL CREDIT FOR REQUIRED PAID SICK LEAVE.
“(a) IN GENERAL.—In the case of an employer, there shall be allowed as a credit against the tax imposed by section 3111(a) or 3221(a) of the Internal Revenue Code of 1986 for each calendar quarter an amount equal to 100 percent of the qualified sick leave wages paid by such employer with respect to such calendar quarter.
“(b) LIMITATIONS AND REFUNDABILITY.—
“(1) WAGES TAKEN INTO ACCOUNT.—The amount of qualified sick leave wages taken into account under subsection (a) with respect to any individual shall not exceed $200 ($511 in the case of any day any portion of which is paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act) for any day (or portion thereof) for which the individual is paid qualified sick leave wages.
“(2) OVERALL LIMITATION ON NUMBER OF DAYS TAKEN INTO ACCOUNT.—The aggregate number of days taken into account under paragraph (1) for any calendar quarter shall not exceed the excess (if any) of—
“(A) 10, over
“(B) the aggregate number of days so taken into account for all preceding calendar quarters.
“(3) CREDIT LIMITED TO CERTAIN EMPLOYMENT TAXES.—The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the tax imposed by section 3111(a) or 3221(a) of such Code for such calendar quarter (reduced by any credits allowed under subsections (e) and (f) of section 3111 of such Code for such quarter) on the wages paid with respect to the employment of all employees of the employer.
“(4) REFUNDABILITY OF EXCESS CREDIT.—
“(A) IN GENERAL.—If the amount of the credit under subsection (a) exceeds the limitation of paragraph (3) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b) of such Code.
“(B) TREATMENT OF PAYMENTS.—For purposes of section 1324 of title 31, United States Code, any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
“(c) QUALIFIED SICK LEAVE WAGES.—For purposes of this section, the term ‘‘qualified sick leave wages’’ means wages (as defined in section 3121(a) of the Internal Revenue Code of 1986) and compensation (as defined in section 3231(e) of the Internal Revenue Code) paid by an employer which are required to be paid by reason of the Emergency Paid Sick Leave Act.
“(d) ALLOWANCE OF CREDIT FOR CERTAIN HEALTH PLAN EXPENSES.—
“(1) IN GENERAL.—The amount of the credit allowed under subsection (a) shall be increased by so much of the employer's qualified health plan expenses as are properly allocable to the qualified sick leave wages for which such credit is so allowed.
“(2) QUALIFIED HEALTH PLAN EXPENSES.—For purposes of this subsection, the term ‘‘qualified health plan expenses’’ means amounts paid or incurred by the employer to provide and maintain a group health plan (as defined in section 5000(b)(1) of the Internal Revenue Code of 1986), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a) of such Code.
“(3) ALLOCATION RULES.—For purposes of this section, qualified health plan expenses shall be allocated to qualified sick leave wages in such manner as the Secretary of the Treasury (or the Secretary's delegate) may prescribe. Except as otherwise provided by the Secretary, such allocation shall be treated as properly made if made on the basis of being pro rata among covered employees and pro rata on the basis of periods of coverage (relative to the time periods of leave to which such wages relate).
“(e) SPECIAL RULES.—
“(1) DENIAL OF DOUBLE BENEFIT.—For purposes of chapter 1 of such Code, the gross income of the employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credit allowed under section 45S of such Code.
“(2) ELECTION NOT TO HAVE SECTION APPLY.—This section shall not apply with respect to any employer for any calendar quarter if such employer elects (at such time and in such manner as the Secretary of the Treasury (or the Secretary's delegate) may prescribe) not to have this section apply.
“(3) CERTAIN TERMS.—Any term used in this section which is also used in chapter 21 of such Code shall have the same meaning as when used in such chapter.
“(4) CERTAIN GOVERNMENTAL EMPLOYERS.—This credit shall not apply to the Government of the United States, the government of any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing.
“(f) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including—
“(1) regulations or other guidance to prevent the avoidance of the purposes of the limitations under this section,
“(2) regulations or other guidance to minimize compliance and record-keeping burdens under this section,
“(3) regulations or other guidance providing for waiver of penalties for failure to deposit amounts in anticipation of the allowance of the credit allowed under this section,
“(4) regulations or other guidance for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection (a), and
“(5) regulations or other guidance to ensure that the wages taken into account under this section conform with the paid sick time required to be provided under the Emergency Paid Sick Leave Act.
“(g) APPLICATION OF SECTION.—This section shall apply only to wages paid with respect to the period beginning on a date selected by the Secretary of the Treasury (or the Secretary's delegate) which is during the 15-day period beginning on the date of the enactment of this Act, and ending on December 31, 2020.
“(h) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND.—There are hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) and the Social Security Equivalent Benefit Account established under section 15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in revenues to the Treasury by reason of this section (without regard to this subsection). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund or Account had this section not been enacted.”
PAYROLL CREDIT FOR REQUIRED PAID FAMILY LEAVE.
Section 7003 of Pub. L. 116-127 provided:
“SEC. 7003. PAYROLL CREDIT FOR REQUIRED PAID FAMILY LEAVE.
“(a) IN GENERAL.—In the case of an employer, there shall be allowed as a credit against the tax imposed by section 3111(a) or 3221(a) of the Internal Revenue Code of 1986 for each calendar quarter an amount equal to 100 percent of the qualified family leave wages paid by such employer with respect to such calendar quarter.
“(b) LIMITATIONS AND REFUNDABILITY.—
“(1) WAGES TAKEN INTO ACCOUNT.—The amount of qualified family leave wages taken into account under subsection (a) with respect to any individual shall not exceed—
“(A) for any day (or portion thereof) for which the individual is paid qualified family leave wages, $200, and
“(B) in the aggregate with respect to all calendar quarters, $10,000.
“(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT TAXES.—The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the tax imposed by section 3111(a) or 3221(a) of such Code for such calendar quarter (reduced by any credits allowed under subsections (e) and (f) of section 3111 of such Code, and section 7001 of this Act, for such quarter) on the wages paid with respect to the employment of all employees of the employer.
“(3) REFUNDABILITY OF EXCESS CREDIT.—If the amount of the credit under subsection (a) exceeds the limitation of paragraph (2) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b) of such Code.
“(c) QUALIFIED FAMILY LEAVE WAGES.—For purposes of this section, the term ‘‘qualified family leave wages’’ means wages (as defined in section 3121(a) of such Code) and compensation (as defined in section 3231(e) of the Internal Revenue Code) paid by an employer which are required to be paid by reason of the Emergency Family and Medical Leave Expansion Act (including the amendments made by such Act).
“(d) ALLOWANCE OF CREDIT FOR CERTAIN HEALTH PLAN EXPENSES.—
“(1) IN GENERAL.—The amount of the credit allowed under subsection (a) shall be increased by so much of the employer's qualified health plan expenses as are properly allocable to the qualified family leave wages for which such credit is so allowed.
“(2) QUALIFIED HEALTH PLAN EXPENSES.—For purposes of this subsection, the term ‘‘qualified health plan expenses’’ means amounts paid or incurred by the employer to provide and maintain a group health plan (as defined in section 5000(b)(1) of the Internal Revenue Code of 1986), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a) of such Code.
“(3) ALLOCATION RULES.—For purposes of this section, qualified health plan expenses shall be allocated to qualified family leave wages in such manner as the Secretary of the Treasury (or the Secretary's delegate) may prescribe. Except as otherwise provided by the Secretary, such allocation shall be treated as properly made if made on the basis of being pro rata among covered employees and pro rata on the basis of periods of coverage (relative to the time periods of leave to which such wages relate).
“(e) SPECIAL RULES.—
“(1) DENIAL OF DOUBLE BENEFIT.—For purposes of chapter 1 of such Code, the gross income of the employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credit allowed under section 45S of such Code.
“(2) ELECTION NOT TO HAVE SECTION APPLY.—This section shall not apply with respect to any employer for any calendar quarter if such employer elects (at such time and in such manner as the Secretary of the Treasury (or the Secretary's delegate) may prescribe) not to have this section apply.
“(3) CERTAIN TERMS.—Any term used in this section which is also used in chapter 21 of such Code shall have the same meaning as when used in such chapter.
“(4) CERTAIN GOVERNMENTAL EMPLOYERS.—This credit shall not apply to the Government of the United States, the government of any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing.
“(f) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including—
“(1) regulations or other guidance to prevent the avoidance of the purposes of the limitations under this section,
“(2) regulations or other guidance to minimize compliance and record-keeping burdens under this section,
“(3) regulations or other guidance providing for waiver of penalties for failure to deposit amounts in anticipation of the allowance of the credit allowed under this section,
“(4) regulations or other guidance for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection (a), and
“(5) regulations or other guidance to ensure that the wages taken into account under this section conform with the paid leave required to be provided under the Emergency Family and Medical Leave Expansion Act (including the amendments made by such Act).
“(g) APPLICATION OF SECTION.—This section shall apply only to wages paid with respect to the period beginning on a date selected by the Secretary of the Treasury (or the Secretary's delegate) which is during the 15-day period beginning on the date of the enactment of this Act, and ending on December 31, 2020.
“(h) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND.—There are hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) and the Social Security Equivalent Benefit Account established under section 15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in revenues to the Treasury by reason of this section (without regard to this subsection). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund or Account had this section not been enacted.”