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Electronic Code of Federal Regulations

e-CFR data is current as of February 19, 2020

Title 26Chapter ISubchapter CPart 31Subpart B → Subject Group


Title 26: Internal Revenue
PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
Subpart B—Federal Insurance Contributions Act (Chapter 21, Internal Revenue Code of 1954)


Tax on Employers

§31.3111-1   Measure of employer tax.

The employer tax is measured by the amount of wages paid after 1954 with respect to employment after 1936. See §31.3121(a)-1, relating to wages, and §§31.3121(b)-1 to 31.3121(b)-4, inclusive, relating to employment. For provisions relating to time of payment of wages, see §31.3121(a)-2.

[T.D. 6744, 29 FR 8306, July 2, 1964]

§31.3111-2   Rates and computation of employer tax.

(a) Old-age, survivors, and disability insurance. The rates of employer tax for old-age, survivors, and disability insurance with respect to wages paid in calendar years after 1954 are as follows:

Calendar yearPercent
1955 and 19562
1957 and 19582.25
19592.5
1960 and 19613
19623.125
1963 to 1965, both inclusive3.625
19663.85
19673.9
19683.8
1969 and 19704.2
1971 and 19724.6
19734.85
1974 to 2010, both inclusive4.95
2011 and subsequent calendar years5.95

(b) Hospital insurance. The rates of employer tax for hospital insurance with respect to wages paid in calendar years after 1965 are as follows:

Calendar yearPercent
19660.35
1967.50
1968 to 1972, both inclusive.60
19731.0
1974 to 1977, both inclusive0.90
1978 to 1980, both inclusive1.10
1981 to 1985, both inclusive1.35
1986 and subsequent calendar years1.50

(c) Computation of employer tax. The employer tax is computed by applying to the wages paid by the employer the rate in effect at the time such wages are paid.

[T.D. 6983, 33 FR 18014, Dec. 4, 1968, as amended by T.D. 7374, 40 FR 30948, July 24, 1975]

§31.3111-3   When employer tax attaches.

The employer tax attaches at the time that the wages are paid by the employer. For provisions relating to the time of such payment, see §31.3121(a)-2.

§31.3111-4   Liability for employer tax.

The employer is liable for the employer tax with respect to the wages paid to his employees for employment performed for him.

§31.3111-5   Manner and time of payment of employer tax.

The employer tax is payable to the district director in the manner and at the time prescribed in Subpart G of the regulations in this part.

§31.3112-1   Instrumentalities of the United States specifically exempted from the employer tax.

Section 3112 makes ineffectual as to the employer tax imposed by section 3111 those provisions of law which grant to an instrumentality of the United States an exemption from taxation, unless such provisions grant a specific exemption from the tax imposed by section 3111 by an express reference to such section or the corresponding section of prior law (section 1410 of the Internal Revenue Code of 1939). Thus, the general exemptions from Federal taxation granted by various statutes to certain instrumentalities of the United States without specific reference to the tax imposed by section 3111 or by section 1410 of the 1939 Code are rendered inoperative insofar as such exemptions relate to the tax imposed by section 3111. For provisions relating to the exception from employment of services performed in the employ of an instrumentality of the United States specifically exempted from the employer tax, see §31.3121(b)(5)-1. For provisions relating to services performed for an instrumentality exempt on December 31, 1950, from the employer tax, see paragraph (c) of §31.3121 (b) (6)-1.

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