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CHAPTER 22— RAILROAD RETIREMENT TAX ACT « SUBCHAPTER D— GENERAL PROVISIONS

Sec. 3231. Definitions --------- ....... --------------------------------- 366

(a) Employer ______________________________________________ 366

(b) Employee ______________________________________________ 355

(c) Employee Representative ------------------------------- 356

(d) Service ____________ ..... ------------------------------- 357

(e) Compensation __________________________________________ 358

(f) Company ______________________________________________ 359

(g) Carrier ----------------------------------------------- 358

SEC. 3231. DEFINITIONS.

(a) Employee. — For purposes of this chapter, the term "employer"

means any carrier (as defined in subsection (g)), and any company

which is directly or indirectly owned or controlled by one or more such

carriers or under common control therewith, and which operates any

equipment or facility or performs any service (except trucking service,

casual service, and the casual operation of equipment or facilities) in

connection with the transportation of passengers or property by rail

road, or the receipt, delivery, elevation, transfer in transit, refriger

ation or icing, storage, or handling of property transported by rail

road, and any receiver, trustee, or other individual or body, judicial

or otherwise, when in the possession of the property or operating

all or any part of the business of any such employer; except that the

term "employer" shall not include any street, interurban, or suburban

electric railway, unless such railway is operating as a part of a general

steam-railroad system of transportation, but shall not exclude any

part of the general steam-railroad system of transportation now or

hereafter operated by any other motive power. The Interstate Com

merce Commission is hereby authorized and directed upon request

of the Secretary or his delegate, or upon complaint of any party in

terested, to determine after hearing whether any line operated by

electric power falls within the terms of this exception. The term

"employer" shall also include railroad associations, traffic associations,

tariff bureaus, demurrage bureaus, weighing and inspection bureaus,

collection agencies and other associations, bureaus, agencies, or organ

izations controlled and maintained wholly or principally by two or

more employers as hereinbefore defined and engaged in the perform

ance of services in connection with or incidental to railroad transpor

tation; and railway labor organizations, national in scope, which

have been or may be organized in accordance with the provisions of

the Railway Labor Act, as amended (44 Stat. 577; 45 U. S. C.,

chapter 8), and their State and National legislative committees and

their general committees and their insurance departments and their

local lodges and divisions, established pursuant to the constitutions

and bylaws of such organizations. The term "employer" shall not

include any company by reason of its being engaged in the mining

of coal, the supplying of coal to an employer where delivery is not

beyond the mine tipple, and the operation of equipment or facilities

therefor, or in any of such activities.

(b) Employee. — For purposes of this chapter, the term "employee" means any individual in the service of one or more employers for com

M Only sec. 3231 Is reprinted here. For other sections of chapter 22, see the Internal Revenue Code of 1954.

pensation; except that the term "employee" shall include an employee of a local lodge or division defined as an employer in subsection (a) only if he was in the service of or in the employment relation to a carrier on or after August 29, 1935. An individual shall be deemed to have been in the employment relation to a carrier on August 29, 1935, if—

(1) he was on that date on leave of absence from his employment, expressly granted to him by the carrier by whom he was employed, or by a duly authorized representative of such carrier, and the grant of such leave of absence was established to the satisfaction of the Railroad Retirement Board before July 1947; or

(2) he was in the service of a carrier after August 29,1935, and before January 1946 in each of 6 calendar months, whether or not consecutive; or

(3) before August 29,1935, he did not retire and was not retired or discharged from the service of the last carrier by whom he was employed or its corporate or operating successor, but—

(A) solely by reason of his physical or mental disability he ceased before August 29, 1935, to be in the service of such carrier and thereafter remained continuously disabled until he attained age 65 or until August 1945, or

(B) solely for such last stated reason a carrier by whom he was employed before August 29, 1935, or a carrier who is its successor did not on or after August 29, 1935, and before August 1945 call him to return to service, or

(C) if he was so called he was solely for such reason unable to render service in 6 calendar months as provided in para

faph (2); or he was on August 29, 1935, absent from the service of a carrier by reason of a discharge which, within 1 year after the effective date thereof, was protested, to an appropriate labor representative or to the carrier, as wrongful, and which was followed within 10 years of the effective date thereof by his reinstatement in good faith to his former service with all his seniority rights;

except that an individual shall not be deemed to have been on August 29, 1935, in the employment relation to a carrier if before that date he was granted a pension or gratuity on the basis of which a pension was awarded to him pursuant to section 6 of the Railroad Retirement Act of 1937 (50 Stat. 312; 45 U. S. C. 228f), or if during the last payroll period before August 29, 1935, in which he rendered service to a carrier he was not in the service of an employer, in accordance with subsection (d), with respect to any service in such payroll period, or if he could have been in the employment relation to an employer only by reason of his having been, either before or after August 29, 1935, in the service of a locallodge or division defined as an employer in subsection (a). The term "employee" includes an officer of an employer. The term "employee" shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple.

(c) Employee Representative.—For purposes of this chapter, the terifa "employee representative" means any officer or official representative of a railway labor organization other than a labor organization included in the term "employer" as defined in subsection (a), who before or after June 29, 1937, was in the service of an employer as defined in subsection (a) and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act (44 Stat. 577; 45 U. S. C., chapter 8), as amended, and any individual who is regularly assigned to or regularly employed by such officer or official representative in connection with the duties of his office.

(d) Service.—For purposes of this chapter, an individual is in the service of an employer whether his service is rendered within or without the United States, if—

(1) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or he is rendering professional or technical services and is integrated into the staff 01 the employer, or he is rendering, on the property used in the employer's operations, other personal services the rendition of which is integrated into the employer's operations, and

(2) he renders such service for compensation;

except that an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general committee of a railway-labor-organization employer, not conducting the principal part of its business in the Unitea States, only when he is rendering service to it in the United States; and an individual shall be deemed to be in the service of such a local lodge or division only if—

(3} all, or substantially all, the individuals constituting its membership are employees of an employer conducting the principal part of its business in the United States; or

(4) the headquarters of such local lodge or division is located in the United States;

and an individual shall be deemed to be in the service of such a general committee only if—

(5) he is representing a local lodge or division described in paragraph (3) or (4) immediately above; or

(6) all, or substantially all, the individuals represented by it are employees of an employer conducting the principal part of its business in the Unitea States; or

(7) he acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer, but in such case if nis office or headquarters is not located in the United States and the individuals represented by such general committee are employees of an employer not conducting the principal part of its business in the United States, only such proportion of the remuneration for such service shall be regarded as compensation as the proportion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its jurisdiction, unless such mileage formula is inapplicable, in which case such other formula as the Railroad Retirement Board may have prescribed pursuant to section 1 (c) of the Railroad Retirement Act of 1937 (50 Stat. 308; 45 U. S. C. 228a) shall be applicable, and if the application of such mileage formula, or such other formula as the Board may prescribe, would result in the compensation of the individual being less than 10 percent of his remuneration for such service, no part of such

remuneration shall be regarded as compensation;

Provided however, That an individual not a citizen or resident of the United States shall not be deemed to be in the service of an employer when rendering service outside the United States to an employer who is required under the laws applicable in the place where the service is rendered to employ therein in whole or in part, citizens or residents thereof; and the laws applicable on August 29, 1935, in the place where the service is rendered shall be deemed to have been applicable there at all times prior to that date.

(e) Compensation.—For purposes of this chapter—

(1) The term "compensation" means any form of money remuneration earned by an individual for services rendered as an employee to one or more employers, or as an employee representative, including remuneration paid for time lost as an employee, but remuneration paid for time lost shall be deemed earned in the month in which such time is lost. Such term does not include tips, or the voluntary payment by an employer, without deduction from the remuneration of the employee, of the tax imposed on such employee by section 3201. Compensation which is earned during the period for which the Secretary or his delegate shall require a return of taxes under this chapter to be made and which is payable during the calendar month following such period shall be deemed to have been paid during such period only. For the purpose of determining the amount of taxes under sections 3201 and 3221, compensation earned in the service of a local lodge or division of a railway-labor-organization employer shall be disregarded with respect to any calendar month if the amount thereof is less than $3. Compensation for service as a delegate to a national or international convention of a railway labor organization denned as an "employer" in subsection (a) of this section shall be disregarded for purposes of determining the amount of taxes due pursuant to this chapter if the individual rendering such service has not previously rendered service, other than as such a delegate, which may be included in his "years of service" for purposes of the Railroad Retirement Act.

(2) A payment made by an employer to an individual through the employer's payroll shall be presumed, in the absence of evidence to the contrary, to be compensation for service rendered by such individual as an employee of the employer in the period with respect to which the payment is made. An employee shall be deemed to be paid "for time lost" the amount he is paid by an employer with respect to an identifiable period of absence from the active service of the employer, including absence on account of personal injury, and the amount he is paid by the employer for loss of earnings resulting from his displacement to a less remunerative position or occupation. If a payment is made by an employer with respect to a personal injury and includes pay_for time lost, the total payment shall be deemed to be paid for time lost unless, at the time of payment, a part of such payment is specifically apportioned to factors other than time lost, in which event only such part of the payment as is not so apportioned shall be deemecl to be paid for time lost.

(f) Company.—For purposes of this chapter, the term "company" includes corporations, associations, and joint-stock companies.

(g) Gabbier.—For purposes of this chapter, the term "carrier" means an express company, sleeping-car company, or carrier by railroad, subject to part I of the Interstate Commerce Act (49 U. S. C., chapter 1).

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CHAPTER 23—FEDERAL UNEMPLOYMENT TAX ACT3

Page

Sec. 3301. Rate of tax 359

Sec. 3302. Credits against tax 350

Sec. 3303. Conditions of additional credit allowance 362

Sec. 3304. Approval of State laws 366

Sec. 3305. Applicability of State law 367

Sec. 3306. Definitions 369

Sec. 3307. Deductions as constructive payments 376

Sec. 3308. Instrumentalities of the United States 376

Sec. 3309. Short title" 377

SEC. 3301. RATE OF TAX.

There is hereby imposed on every employer (as defined in section 3306 (a)) for the calendar year 196134 and for each calendar year thereafter an excise tax, with respect to having individuals in his employ equal to 3.1s° percent of the total wages (as defined in section 3306 (b)) paid by him during the calendar year with respect to employment (as denned in section 3306 (c)) after December 31, 1938.

SEC. 3302. CREDITS AGAINST TAX.

(a) Contributions To State Unemployment Funds.

(1) The taxpayer may, to the extent provided in this subsection and subsection (c), credit against the tax imposed by section 3301 the amount of contributions paid by him into an unemployment fund maintained during the taxable year under the unemployment compensation law of a State which is certified for the taxable year as provided in section 3304.

(2) The credit shall be permitted against the tax for the taxable year only for the amount of contributions paid with respect to such taxable year.

(3) The credit against the tax for any taxable year shall be permitted only for contributions paid on or before the last day upon which the taxpayer is required under section 6071 to file a return for such year; except that credit shall be permitted for contributions paid after such last day, but such credit shall not exceed 90 percent of the amount which would have been allowable as credit on account of such contributions had they been paid on or before such last day.

(4) Upon the payment of contributions into the unemployment fund of a State which are required under the unemployment com

"This chapter has been compiled by the United States Department of Labor. See footnote 1, p. 126.

"P. L. 86-778, sec. 531 (d) (2) Inserted a new section heading 3308 (Instrumentalities of the United States) and changed the section number for "Short Title" to "3309" from "3308" applicable with respect to remuneration paid after 1961 for services performed after 1961.

»P. L. 86-778, sec. 523 (a) (1) substituted "1961" for "1955" applicable only with respect to the calendar year 1961 and calendar years thereafter.

26 P. L. 86-778, sec. 523 (a) (2) changed the rate to 3.1 percent from 3 percent applicable only with respect to the calendar year 1981 and calendar years thereafter.

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