AMENDMENTS OF SUBTITLE C; EMPLOYMENT TAXES.

SEC. 1903. AMENDMENTS OF SUBTITLE C; EMPLOYMENT TAXES. (a) In General.— (1) Amendments of sections 3101 and 3111.— (A) Section 3101(a) (relating to rate of tax on employees for old-age, survivors, and disability insurance) and section 3111(a) (relating to rate of tax on employers for such insurance) are each amended by striking out paragraphs (1), (2), (3), and (4), and by redesignating paragraphs (5) and (6) as paragraphs (1) and (2), respectively. (B) Section 3101(b) (relating to rate of tax on employees for hospital insurance) and section 3111(b) (relating to rate of tax on employers for such insurance) are each amended by striking out paragraphs (1) and (2), and by redesignating paragraphs (3), (4), (5), and (6) as paragraphs (1), (2), (3), and (4), respectively. (2) Repeal of section 3113.— Section 3113 (relating to application of social security tax on District of Columbia credit unions) is repealed. (3) Amendments of section 3121.— (A) Section 3121(b) (relating to employment) is amended— (i) by striking out “performed after 1936 and prior to 1955 which was employment for purposes of subchapter A of chapter 9 of the Internal Revenue Code of 1939 under the law applicable to the period in which such service was performed, and any service, of whatever 90 STAT. 1807nature, performed after 1954” and inserting in lieu thereof “, of whatever nature, performed”, and (ii) by striking out “, in the case of service performed after 1954,”. (B) Section 3121(b)(1) is amended by striking out “65 Stat. 119;”. (C) Section 3121(b)(6)(B)(v) is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (D) Section 3121(g)(3) (relating to agricultural labor) is amended by striking out “46 Stat. 1550, § 3;”. (E) Section 3121(k)(1) (relating to exemption of certain organizations) is amended by striking out subparagraphs (F) and (H) and by redesignating subparagraph (G) as subparagraph (F). (F) Section 3121 (1)(2) (relating to employees of foreign subsidiaries) is amended by striking out “, but in no case prior to January 1, 1955”. (G) Section 3121 (m)(1) (relating to service in the uniformed services) is amended by striking out “after December 1956”. (4) Amendments of section 3122.— The last sentence of section 3122 (relating to Federal service) is amended by striking out “Secretary” each place it appears and inserting in lieu thereof “Secretary of Transportation”. (5) Amendment of section 3123.— Section 3125(c) (relating to returns in the case of Governmental employees in the District of Columbia) is amended by striking out “Commissioners of the District of Columbia or such agents as they may designate” and by inserting in lieu thereof “Mayor of the District of Columbia of such agents as he may designate”. (6) Amendment of section 3201.— Section 3201 (relating to rate of tax on railroad employees) is amended— (A) by striking out “oi the Internal Revenue Code of 1954” each place it appears; (B) by striking out “of such Code”; (C) by striking out “after September 30, 1973, as is” and inserting in lieu thereof “as is”; and (D) by striking out “any month after September 30, 1973” and inserting in lieu thereof “any month”. (7) Amendments of section 3202.— (A) The second sentence of section 3202(a) (relating to reduction of tax by railroad employer) is amended— (i) by striking out “after September 30, 1973,” each place it appears; (ii) by striking out “after September 30, 1973 and the aggregate” and inserting in lieu thereof “and the aggregate” (iii) by striking out “of the Internal Revenue Code of 1954” each place it appears; and (iv) by inserting a comma immediately after “for any month” each place it appears. (B) Section 3202(b) (relating to indemnification of employer) is amended by striking out “made”. (8) Amendments of section 3211.— Section 3211(a) (relating to rate of tax on railroad employee representatives) is amended— 90 STAT. 1808 (A) by striking out “3111(a), 3111(b)” and inserting in lieu thereof “3111(a), and 3111(b)”; (B) by striking out “of the Internal Revenue Code of 1954” each place it appears; (C) by striking out “rendered by him after September 30, 1973,” and inserting in lieu thereof “rendered by him”; and (D) by striking out “after September 30, 1973”. (9) Amendments of section 3221.— (A) The first sentence of section 3221(a) (relating to rate of tax on railroad employers) is amended— (i) by striking out “after September 30, 1973,” each place it appears; (ii) by striking out “after September 30, 1973: except that” and inserting in lieu thereof “, except that”; (iii) by striking out “after September 30, 1973 of the aggregate” and inserting in lieu thereof “of the aggregate”; (iv) by striking out “of the Internal Revenue Code of 1954” each place it appears; and (v) by inserting a comma before “the tax imposed”. (B) Section 3221(b) (relating to rate of tax on railroad employers) is amended to read as follows: “(b) The rate of tax imposed by subsection (a) shall be increased by the rate of tax imposed with respect to wages by section 3111(a) plus the rate imposed by section 3111(b).” (C) Section 3221(c) (relating to additional railroad retirement tax) is amended— (i) by striking out “(1) at the rate of 2 cents for the period beginning November 1, 1966, and ending March 31, 1970, and (2) commencing April 1, 1970,” and (ii) by striking out “commencing with the quarter beginning April 1, 1970”. (10) Amendments of section 3231.— (A) Section 3231(a)(defining employer) is amended by striking out “44 Stat. 577;”. (B) Section 3231(b)(defining employee) is amended by striking out. “50 Stat. 312;”. (C) Section 3231(e)(defining employee representative) is amended by striking out “44 Stat. 577;”. (D) Section 3231(d)(7)(defining service) is amended by striking out “50 Stat, 308;”. (11) Amendments of section 3301.— Section 3301 (relating to Federal unemployment tax rate) is amended— (A) by striking out “the calendar year 1970 and each calendar year thereafter” and inserting in lieu thereof “each calendar year”, and (B) by striking out the last sentence. (12) Amendments of section 3302.— (A) Section 3302(a) (relating to credits against tax) is amended by striking out “(10month period in the case of October 31, 1972)”. (B) Section 3302(b) (relating to additional credit) is amended— (i) by striking out “(10month period in the case of October 31, 1972)”, and 90 STAT. 1809 (ii) by striking out “12 or 10month period, as the case may be,” and inserting in lieu thereof “12month period”. (C) (i) Section 3302(c) (relating to limitation on credits against unemployment tax) is amended by striking out paragraph (2) and the unnumbered paragraph immediately following such paragraph (2) (relating to advances made to a State unemployment account before September 13, 1960), and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3),respectively. (ii) Section 3302(c)(2) (relating to advances made to a State unemployment account after September 12, 1960), as redesignated by clause (i) of this subparagraph, is amended by striking out “on or after the date of the enactment of the Employment Security Act of 1960”, and by striking out “paragraphs (1) and (2)” and inserting in lieu thereof “paragraph (1)”. (iii) Section 3302(c)(3) (relating to reductions with respect to certain agreements under the Trade Act of 1974),as redesignated by clause (i) of this subparagraph, is amended by striking out “paragraphs (1), (2), and (3)” and inserting in lieu thereof “paragraphs (1) and (2)”. (iv) Section 3302 (d)(3) (relating to effect of repayment of advances) is amended by striking out “or (3)”. (v) Section 3302(d)(4), (5), and (6) (relating to special rules) are each amended by striking out “subsection (c)(3)” each place it appears and inserting in lieu thereof “subsection (c)(2)”. (vi) Section 3302(d)(7) (relating to determination and certification of percentages) is amended by striking out “subsection (c)(3)(B) or (C)” and inserting in lieu thereof “subsection (c)(2)(B) or (C)”. (D) Section 3302(d) (relating to special rules for credits against the unemployment tax) is amended by striking out paragraph (8)(a cross reference). (13) Amendments to section 3303.— Section 3303 (b) (relating to certification with respect to additional credit allowance) is amended— (A) by striking out “(10month period in the case of October 31, 1972) ” each place it appears, (B) by striking out “12 or 10month period, as the case may be,” each place it appears in paragraphs (1) and (2), and inserting in lieu thereof “12month period”, and (C) by striking out “12 or 10month period, as the case may be,” in paragraph (3) and inserting in lieu thereof “12month period,”. (14) Amendments to section 3304.— (A) Section 3304(a)(3) (relating to requirements) is amended by striking out “49 Stat, 640; 52 Stat. 1104, 1105;”. (B) Section 3304(c) (relating to certification) is amended by striking out “(10month period in the case of October 31, 1972)”. (15) Amendments of section 3305.— (A) Section 3305(g) (relating to vessels operated by general agents of the United States) is amended by striking out “on or after July 1, 1953,”. 90 STAT. 1810 (B) Section 3305 (h) (relating to certain contributions to States) is amended by striking out “on or after July 1, 1953, and”. (C) Section 3305(j) (relating to denial of credits in certain cases) is amended by striking out “after December 31, 1971,”. (16) Amendments of section 3300.— (A) Section 3306(c)(9) (relating to the exclusion of service performed by certain employees and employee representatives from the definition of employment) is amended by striking out “52 Stat. 1094, 1095;”. (B) Section 3306(c)(18) (relating to the exclusion of certain service performed by nonresident aliens from the definition of employment) is amended by inserting after the “Immigration and Nationality Act, as amended” the following: “(8U.S.C. 1101(a)(15)(F) or (J))”. (C) Section 3306(f) (relating to the definition of an unemployment fund) is amended by striking out “49 Stat. 640; 52 Stat. 1104, 1105;”. . (D) Section 3306(n) (relating to vessels operated by general agents of the United States) is amended by striking out “on or after July 1, 1953,”. (17) Amendment of section 3402.— Section 3402(1)(3)(B) (relating to marital status) is amended by striking out “section 2(b)” and inserting in lieu thereof “section 2 (a)”. (b) Amendment Conforming to the Repeal of Section 3113.— The table of sections for subchapter B of chapter 21 is amended by striking out the item relating to section 3113. (c) Amendments to Profusions Referring to Territories.— Sections 3401(c) and 3404 are each amended by striking out “Territory,” each place it appears. (d) Effective Dates.— The amendments made by this section shall apply with respect to wages paid after December 31, 1976, except that the amendments made to chapter 22 of the Internal Revenue Code of 1954 shall apply with respect to compensation paid for services rendered after December 31, 1976.