TABLE 6.- Michigan: Schedule of taxes due under FUTA, including repayment of TEUC, TUC, and title XII

3 Balance remaining would be less than the indicated percentage of taxes; if balance not repaid by State, excess collections of employer taxes would be credited to State's unemployment account.

A 1963 Michigan law provides for State repayment of any 1966 balance.

TABLE 7.-Pennsylvania: Schedule of taxes due under FUTA, including repayment of TEUC, TUC, and title XII

Balance remaining would be less than the indicated percentage of taxes; if balance not repaid by State, excess collections of employer taxes would be credited to State's unemployment account.

TABLE 8.—Preliminary estimates of amount of (installment) payment required to avoid reduction in offset against FUTA for taxable year 1963 (for restoration of TUC)

A. STATES WITH $3,000 WAGE BASE IN 1962
[Amounts in thousands]

1 Except for Michigan, all TUC costs will be restored not later than with payments on 1966 wages. Net Federal unemployment taxes will be 0. 04 percent for subsequent years in all States but Alaska, Michigan, and Pennsylvania.

2 Title XII repayment rate will be 0.15 percent for 1967, 0.30 percent for 1968, and will increase by 0.15 percent each year until the final repayment on 1975 wages at a title XII rate of 1.35 percent, and a total net Federal rate of 1.75 percent.

TUC rate will be 0.30 percent on 1967 and 1968 wages; title XII rate will be 0.15
percent for 1967, 0.30 percent for 1968, and will increase by 0.15 percent each year until
the final repayment on 1970 wages at a title XII rate of 0.60 percent, and a total net
Federal rate of 1.00 percent.

Title XII repayment rate will be 0.15 percent for 1967, 0.30 percent for 1968, and be completed at a title XII rate of 0.45 percent for 1969, at a total net Federal rate of 0.85 percent.

PART V

ADMINISTRATIVE, PROCEDURAL, AND MISCELLANEOUS MATTERS

26 CFR 601.602: Forms and instructions. (Also Part I, Section 3302; 31.3302 (c)−1.) (Also Part II, Public Law 88-173.)

Rev. Proc. 63-28

Computation of reductions in credit against tax reportable on Form 940, Employer's Annual Federal Unemployment Tax Return, for 1961, 1962, or 1963, with respect to wages paid for services performed in a state which has not restored to the United States Treasury amounts which were made available under title XII of the Social Security Act or under the Temporary Unemployment Compensation Act of 1958.

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth the procedure to be followed in computing reductions in credit against tax reportable on Form 940, Employer's Annual Federal Unemployment Tax Return, for 1961, 1962, or 1963.

SEC. 2. BACKGROUND.

Section 3302 of the Internal Revenue Code of 1954 provides for credits against the Federal unemployment tax imposed by section 3301 of the Code on employers of four or more employees. Reductions in the amount of credit otherwise allowable are provided for in section 3302 (c) of the Code and in section 104 of the Temporary Unemployment Compensation Act of 1958. The reductions may occur if an employer pays wages for services performed in a state which has not restored to the United States Treasury amounts which were made available under title XII of the Social Security Act or under the Temporary Unemployment Compensation Act of 1958. Credit reductions for 1963 or any subsequent year may be forestalled if a state restores to the United States Treasury before November 10 of that year an amount approximately equal to the additional Federal tax which otherwise would be due for that year as a result of the credit reduction.

SEC. 3. CREDIT REDUCTIONS FOR 1961 OR 1962.

Regulations relating to reductions in credit under section 3302 (c) of the Code for the calendar years 1961 and 1962 are set forth in section 31.3302 (c)-1 of the Employment Tax Regulations, as amended by Treasury Decision 6658, I.R.B. 1963-28, 9. The credit reductions are computed by applying the following percentages to wages paid for services performed in the following States: