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Public Law 91-53
91st Congress, H. R. 9951
August 7, 1969

An Act

To provide for the collection of the Federal unemployment tax in quarterly installments during each taxable year; to make status of employer depend on employment during preceding as well as current taxable year; to exclude from the computation of the excess the balance in the employment security administration account as of the close of fiscal years 1970 through 1972; to raise the limitation on the amount authorized to be made available for expenditure out of the employment security administration account by the amounts so excluded; and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in ('ongress assembled, That section 3306 (a) Federal of the Internal Revenue Code of 1954 (relating to definition of unemployment employer) is amended to read as follows: tax; employment

"(a) EMPLOYER.-For purposes of this chapter, the term 'employer' does not include any person unless on each of some 20 days during the taxable year or during the preceding taxable year, each day being in a different calendar week, the total number of individuals who were employed by him in employment for some portion of the day (whether or not at the same moment of time) was 4 or more." SEC. 2. COLLECTION OF FEDERAL UNEMPLOYMENT TAX ON QUARTERLY OR OTHER TIME PERIOD BASIS.

security; tax

surcharge.
68A Stat. 447.

26 USC 3306.

(a) QUARTERLY PAYMENT OF FEDERAL UNEMPLOYMENT TAX.-Subchapter A of chapter 62 of the Internal Revenue Code of 1954 (relating to place and due date for payment of tax) is amended by 26 USC 6151striking out section 6157 and by inserting in lieu thereof the following:

"SEC. 6157. PAYMENT OF FEDERAL UNEMPLOYMENT TAX ON QUARTERLY OR OTHER TIME PERIOD BASIS.

"(a) GENERAL RULE. -Every person who for the calendar year is an employer (as defined in section 3306 (a)) shall

6157.

"(1) if the person in the preceding calendar year employed 4 or more employees in employment (within the meaning of section 3306 (c) and (d)) on each of some 20 days during such preceding calendar year, each such day being in a different calendar week, compute the tax imposed by section 3301 for each of the first three 77 Stat. 51. calendar quarters in the calendar year, and

"(2) if paragraph (1) does not apply, compute the tax imposed by section 3301

"(A) for the period beginning with the first day of the calendar year and ending with the last day of the calendar quarter (excluding the last calendar quarter) in which such person becomes such an employer, and

"(B) for the third calendar quarter of such year, if the period specified in subparagraph (A) includes only the first two calendar quarters of the calendar year.

83 STAT. 91

The tax for any calendar quarter or other period shall be computed 83 STAT. 92 as provided in subsection (b) and the tax as so computed shall, except as otherwise provided in subsections (c) and (d), be paid in such manner and at such time as may be provided in regulations prescribed by the Secretary or his delegate.

(b) COMPUTATION OF TAX.-The tax for any calendar quarter or other period referred to in paragraph (1) or (2) of subsection (a) shall be computed by multiplying the amount of wages (as defined in section 3306(b)) paid in such calendar quarter or other period by the number of percentage points (including fractional points) by which the rate of tax specified in section 3301 exceeds 2.7 percent.

66

"(c) SPECIAL RULE FOR CALENDAR YEARS 1970 AND 1971.-For purposes of subsection (a), the tax computed as provided in subsection

68A Stat. 439;
77 Stat. 51.
26 USC 3301.

68A Stat. 768.

82 Stat. 260.

Ante, p. 91.

26 USC 63116316.

26 USC 33013309.

26 USC 6513.

26 USC 6511.

80 Stat. 104.

83 STAT. 92 83 STAT. 93

26 USC 61516157.

77 Stat. 51.

42 USC 1101.

(b) for any calendar quarter or other period shall be reduced (1) by 66% percent if such quarter or period is in 1970, and (2) by 333 percent if such quarter or period is in 1971.

(d) SPECIAL RULE WHERE ACCUMULATED AMOUNT DOES NOT EXCEED $100.—Nothing in this section shall require the payment of tax with respect to any calendar quarter or other period if the tax under section 3301 for such period, plus any unpaid amounts for prior periods in the calendar year, does not exceed $100."

(b) ASSESSMENT AUTHORITY.-Section 6201(b) of such Code (relating to assessment authority) is amended to read as follows: (b) AMOUNT NOT TO BE ASSESSED.—

"(1) ESTIMATED INCOME TAX.-No unpaid amount of estimated tax under section 6153 or 6154 shall be assessed.

"(2) FEDERAL UNEMPLOYMENT TAX.- -No unpaid amount of Federal unemployment tax for any calendar quarter or other period of a calendar year, computed as provided in section 6157, shall be assessed."

(c) TREATMENT OF QUARTERLY PAYMENT OF FEDERAL UNEMPLOYMENT TAX.-Subchapter B of chapter 64 of such Code is amended by adding at the end thereof the following new section:

"SEC. 6317. PAYMENTS OF FEDERAL UNEMPLOYMENT TAX FOR CALENDAR QUARTER.

"Payment of Federal unemployment tax for a calendar quarter or other period within a calendar year pursuant to section 6157 shall be considered payment on account of the tax imposed by chapter 23 of such calendar year."

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(d) TIME TAX CONSIDERED PAID.-Section 6513 of such Code (relating to time return deemed filed and tax considered paid) is amended by adding at the end thereof the following new subsection:

"(e) PAYMENTS OF FEDERAL UNEMPLOYMENT TAX.-Notwithstanding subsection (a), for purposes of section 6511 any payment of tax imposed by chapter 23 which, pursuant to section 6157, is made for a calendar quarter or other period within a calendar year shall, if made before the last day prescribed for filing the return for the calendar year (determined without regard to any extension of time for filing), be considered made on such last day."

(e) INTEREST ON UNDERPAYMENTS OR NONPAYMENT OF TAX.-Section 6601 of such Code (relating to interest on underpayment or nonpayment of tax) is amended by redesignating subsection (k) as subsection (1) and by adding a new subsection (k) to read as follows:

"(k) EXCEPTION AS TO FEDERAL UNEMPLOYMENT TAX.-This section shall not apply to any failure to make a payment of tax imposed by section 3301 for a calendar quarter or other period within a taxable year required under authority of section 6157."

(f) TECHNICAL AND CLERICAL AMENDMENTS.

(1) The table of sections for subchapter A of chapter 62 of the Internal Revenue Code of 1954 is amended by striking out

“Sec. 6157. Payment of taxes under provisions of the Tariff Act."
and inserting in lieu thereof

"Sec. 6157. Payment of Federal unemployment tax on quarterly or other
time period basis."

(2) The table of sections for subchapter B of chapter 64 of such Code is amended by adding at the end thereof the following:

"Sec. 6317. Payments of Federal unemployment tax for calendar quarter.” SEC. 3. EMPLOYMENT SECURITY ADMINISTRATION ACCOUNT.

(a) Paragraph (3) of section 901 (c) of the Social Security Act is amended to read as follows:

(3) For purposes of paragraph (1)(A), the limitation on the amount authorized to be made available for any fiscal year is an amount equal to 95 percent of the amount estimated and set forth in the budget of the United States Government for such fiscal year as the net receipts during such year under the Federal Unemployment Tax Act; except that this limitation is increased by any unexpended 68A Stat. 439. amount retained in the employment security administration account in accordance with section 901 (f) (2) (B). Each estimate of net receipts under this paragraph shall be based upon a tax rate of 0.4 percent."

26 USC 3301

3309.

Infra.

(b) Paragraph (2) of section 901(f) of such Act is amended (1) 74 Stat. 973. by striking out "The" and inserting in lieu thereof “(A) Except as 42 USC 1101. provided in subparagraph (B), the", and (2) by adding at the end thereof the following:

(B) With respect to the fiscal years ending June 30, 1970, June 30, 1971, and June 30, 1972, the balance in the employment security administration account at the close of each such fiscal year shall not be considered excess but shall be retained in the account for use as provided in paragraph (1) of subsection (c)."

SEC. 4. EFFECTIVE DATE.

(a) The amendments made by the first two sections of this Act shall apply with respect to calendar years beginning after December 31,

1969.

(b) The amendments made by section 3 shall take effect upon enactment of this Act.

SEC. 5. EXTENSION OF TAX SURCHARGE.

(a) SURCHARGE EXTENSION.-Section 51 (a) of the Internal Revenue Code of 1954 (relating to imposition of tax surcharge) is amended

(1) by striking out so much of paragraph (1)(A) as follows the table heading "CALENDAR YEAR 1969" and inserting in lieu thereof the following:

"TABLE 1.-SINGLE PERSON (OTHER THAN HEAD OF HOUSEHOLD) AND MARRIED PERSONS FILING SEPARATE RETURN

82 Stat. 252. 26 USC 51.

83 STAT. 93 83 STAT. 94

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