Treasury Regulations (26 C.F.R.)
26 CFR § 31.3201-2
Rates and computation of employee tax.
# (a)
Rates—(1)(i) Tier 1 tax. The Tier 1 employee tax rate equals the sum of the tax rates in effect under section 3101(a), relating to old-age, survivors, and disability insurance, and section 3101(b), relating to hospital insurance. The Tier 1 employee tax rate is applied to compensation up to the contribution base described in section 3231(e)(2)(B)(i). The contribution base is determined under section 230 of the Social Security Act and is identical to the old-age, survivors, and disability insurance wage base and the hospital insurance wage base, respectively, under the Federal Insurance Contributions Act.
(ii) Example. The rule in paragraph (a)(1)(i) of this section is illustrated by the following example.
Example.
A received compensation of $60,000 in 1992. The section 3101(a) rate of 6.2 percent would be applied to A's compensation up to $55,500, the applicable contribution base for 1992. The section 3101(b) rate of 1.45 percent would be applied to the entire $60,000 of A's compensation because the applicable contribution base for 1992 is $130,200.
(2)(i) Tier 2 tax. The Tier 2 employee tax rate equals the percentage set forth in section 3201(b) of the Code. This rate is applied to compensation up to the contribution base described in section 3231(e)(2)(B)(ii).
(ii) Example. The rule in paragraph (a)(2)(i) of this section is illustrated by the following example.
Example.
A received compensation of $60,000 in 1992. The section 3201(b) rate of 4.90 percent would be applied to A's compensation up to $41,400, the applicable contribution base for 1992.
# (b)
(1) Computation. The employee tax is computed by multiplying the amount of the employee's compensation with respect to which the employee tax is imposed by the rate applicable to such compensation, as determined under paragraph (a) of this section. The applicable rate is the rate in effect when the compensation is received by the employee. For rules relating to the time of receipt, see § 31.3121(a)-2 (a) and (b).
(2) Example. The rule in paragraph (b)(1) of this section is illustrated by the following example.
Example.
In 1990, employee A received compensation of $1,000 as remuneration for services performed for employer R in 1989. The employee tax is payable at the rate of 12.55 percent (7.65 percent plus 4.90 percent) in effect for 1990 (the year the compensation was received), and not the 12.41 percent rate (7.51 percent plus 4.90 percent) in effect for 1989 (the year the services were performed).
[T.D. 8582, 59 FR 66189, Dec. 23, 1994]
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In this part (40 sections)
- 31.3121(g)-1 · (g)-1 Agricultural labor.
- 31.3121(h)-1 · (h)-1 American employer.
- 31.3121(i)-1 · (i)-1 Computation to nearest dollar of cash remuneration…
- 31.3121(i)-2 · (i)-2 Computation of remuneration for service performed…
- 31.3121(i)-3 · (i)-3 Computation of remuneration for service performed…
- 31.3121(i)-4 · (i)-4 Computation of remuneration for service performed…
- 31.3121(j)-1 · (j)-1 Covered transportation service.
- 31.3121(l)-1 · (l)-1 Agreements entered into by domestic corporations…
- 31.3121(o)-1 · (o)-1 Crew leader.
- 31.3121(q)-1 · (q)-1 Tips included for employee taxes.
- 31.3121(r)-1 · (r)-1 Election of coverage by religious orders.
- 31.3121(s)-1 · (s)-1 Concurrent employment by related corporations with…
- 31.3121(v)(2)-1 · (v)(2)-1 Treatment of amounts deferred under certain…
- 31.3121(v)(2)-2 · (v)(2)-2 Effective dates and transition rules.
- 31.3123-1 · Deductions by an employer from remuneration of an employee.
- 31.3127-1 · Exemption for employers and their employees if both are…
- 31.3131-1 · Recapture of credits.
- 31.3132-1 · Recapture of credits.
- 31.3134-1 · Recapture of credits.
- 31.3201-1 · Measure of employee tax.
- 31.3201-2 · Rates and computation of employee tax.
- 31.3202-1 · Collection of, and liability for, employee tax.
- 31.3211-1 · Measure of employee representative tax.
- 31.3211-2 · Rates and computation of employee representative tax.
- 31.3211-3 · Employee representative supplemental tax.
- 31.3212-1 · Determination of compensation.
- 31.3221-1 · Measure of employer tax.
- 31.3221-2 · Rates and computation of employer tax.
- 31.3221-3 · Supplemental tax.
- 31.3221-4 · Exception from supplemental tax.
- 31.3221-5 · Recapture of credits under the Families First Coronavirus…
- 31.3231(a)-1 · (a)-1 Who are employers.
- 31.3231(b)-1 · (b)-1 Who are employees.
- 31.3231(c)-1 · (c)-1 Who are employee representatives.
- 31.3231(d)-1 · (d)-1 Service.
- 31.3231(e)-1 · (e)-1 Compensation.
- 31.3231(e)-2 · (e)-2 Contribution base.
- 31.3301-1 · Persons liable for tax.
- 31.3301-2 · Measure of tax.
- 31.3301-3 · Rate and computation of tax.