Social Security Act of 1935
TITLE VIII- TAXES WITH RESPECT TO EMPLOYMENT
Income Tax on Employees
Deduction of Tax from Wages
Deductibility from Income Tax
Excise Tax on Employers
Adjustment of Employers Tax
Refunds and Deficiencies
Collection and Payment of Taxes
Rules and Regulations
Sale of Stamps by Postmasters
Penalties
Definitions
SECTION 801. In addition to other taxes, there shall be levied, collected,
and paid upon the income of every individual a tax equal to the following
percentages of the wages (as defined in section 811) received by him
after December 31, 1936, with respect to employment (as defined in section
811) after such date:
(1) With respect to employment during the calendar years 1937, 1938,
and 1939, the rate shall be 1 per centum.
(2) With respect to employment during the calendar years 1940, 1941,
and 1942, the rate shall 1 1/2 per centum.
(3) With respect to employment during the calendar years 1943, 1944,
and 1945, the rate shall be 2 per centum.
(4) With respect to employment during the calendar years 1946, 1947,
and 1948, the rate shall be 2 1/2 per centum.
(5) With respect to employment after December 31, 1948, the rate shall
be 3 per centum.
SEC. 802. (a) The tax imposed by section 801 shall be collected by
the employer of the taxpayer by deducting the amount of the tax from
the wages as and when paid. Every employer required so to deduct the
tax is hereby made liable for the payment of such tax, and is hereby
indemnified against the claims and demands of any person for the amount
of any such payment made by such employer.
(b) If more or less than the correct amount of tax imposed by section
801 is paid with respect to any wage payment, then, under regulations
made under this title, proper adjustments, with respect both to the
tax and the amount to be deducted, shall be made, without interest,
in connection with subsequent wage payments to the same individual by
the same employer.
SEC. 803. For the purposes of the income tax imposed by Title I of the Revenue Act of 1934 or by any Act of Congress in substitution therefor, the tax imposed by section 801 shall not be allowed as a deduction to the taxpayer in computing his net income for the year in which such tax is deducted from his wages.
SEC. 804. In addition to other taxes, every employer shall pay an
excise tax, with respect to having individuals in his employ, equal
to the following percentages of the wages (as defined in section 811)
paid by him after December 31, 1936, with respect to employment (as
defined in section 811) after such date:
(1) With respect to employment during the calendar years 1937, 1938,
and 1939, the rate shall be 1 per centum.
(2) With respect to employment during the calendar years 1940, 1941,
and 1942, the rate shall be 1 1/2 per centum.
(3) With respect to employment during the calendar years 1943, 1944,
and 1945, the rate shall be 2 per centum.
(4) With respect to employment during the calendar years 1946, 1947,
and 1948, the rate shall be 2 1/2 per centum.
(5) With respect to employment after December 31, 1948, the rate shall
be 3 per centum.
SEC. 805. If more or less than the correct amount of tax imposed by section 804 is paid with respect to any wage payment, then, under regulations made under this title, proper adjustments with respect the tax shall be made, without interest, in connection with subsequent wage payments to the same individual by the same employer.
SEC. 806. If more or less than the correct amount of tax imposed by section 801 or 804 is paid or deducted with respect to any wage payment and the overpayment or underpayment of tax cannot be adjusted under section 802 (b) or 805 the amount of the overpayment shall be refunded and the amount of the underpayment shall be collected in such manner and at such times (subject to the statutes of limitations properly applicable thereto) as may be prescribed by regulations made under this title.
COLLECTION AND PAYMENT OF TAXES
SEC. 807. (a) The taxes imposed by this title shall be collected by
the Bureau of Internal Revenue under the direction of the Secretary
of the Treasury and shall be paid into the Treasury of the United States
as internal- revenue collections. If the tax is not paid when due, there
shall be added as part of the tax interest (except in the case of adjustments
made in accordance with the provisions of sections 802 (b) and 805)
at the rate of one-half of 1 per centum per month from the date the
tax became due until paid.
(b) Such taxes shall be collected and paid in such manner, at such times,
and under such conditions, not inconsistent with this title (either
by making and filing returns, or by stamps, coupons, tickets, books,
or other reasonable devices or methods necessary or helpful in securing
a complete and proper collection and payment of the tax or in securing
proper identification of the taxpayer), as may be prescribed by the
Commissioner of Internal Revenue, with the approval of the Secretary
of the Treasury.
(c) All provisions of law, including penalties, applicable with respect
to any tax imposed by section 600 or section 800 of the Revenue Act
of 1926 and the provisions of section 607 of the Revenue Act of 1934,
shall, insofar as applicable and not inconsistent with the provisions
of this title, be applicable with respect to the taxes imposed by this
title.
(d) In the payment of any tax under this title a fractional part of
a cent shall be disregarded unless it amounts to one-half cent or more,
in which case it shall be increased to 1 cent.
SEC. 808. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make and publish rules and regulations for the enforcement of this title.
SEC. 809. The Commissioner of Internal Revenue shall furnish to the
Postmaster General without prepayment a suitable quantity of stamps,
coupons, tickets, books, or other devices prescribed by the Commissioner
under section 807 for the collection or payment of any tax imposed by
this title, to be distributed to, and kept on sale by, all post offices
of the first and second classes, and such post offices of the third
and fourth classes as
(1) are located in county seats, or
(2) are certified by the Secretary of the Treasury to the Postmaster
General as necessary to the proper administration of this title. The
Postmaster General may require each such postmaster to furnish bond
in such increased amount as he may from time to time determine, and
each such postmaster shall deposit the receipts from the sale of such
stamps, coupons, tickets, books, or other devices, to the credit of,
and render accounts to, the Postmaster General at such times and in
such form as the Postmaster General may by regulations prescribe. The
Postmaster General shall at least once a month transfer to the Treasury,
as internal- revenue collections all receipts so deposited together
with a statement of the additional expenditures in the District of Columbia
and elsewhere incurred by the Post Office Department in performing the
duties imposed upon said Department by this Act, and the Secretary of
the Treasury is hereby authorized and directed to advance from time
to time to the credit of the Post Office Department from appropriations
made for the collection of the taxes imposed by this title, such sums
as may be required for such additional expenditures incurred by the
Post Office Department.
SEC. 810. (a) Whoever buys, sells, offers for sale, uses, transfers,
takes or gives in exchange, or pledges or gives in pledge, except as
authorized in this title or in regulations made pursuant thereto, any
stamp, coupon, ticket, book, or other device, prescribed by the Commissioner
of Internal Revenue under section 807 for the collection or payment
of any tax imposed by this title, shall be fined not more than $1,000
or imprisoned for not more than six months, or both.
(b) Whoever, with intent to defraud, alters, forges, makes, or counterfeits
any stamp, coupon, ticket, book, or other device prescribed by the Commissioner
of Internal Revenue under section 807 for the collection or payment
of any tax imposed by this title, or uses, sells, lends, or has in his
possession any such altered, forged, or counterfeited stamp, coupon,
ticket, book, or other device, or makes, uses, sells, or has in his
possession any ma- terial in imitation of the material used in the manufacture
of such stamp, coupon, ticket, book, or other device, shall be fined
not more than $5,000 or imprisoned not more than five years, or both.
SEC. 811. When used in this title- (a) The term wages means all remuneration
for employment, including the cash value of all remuneration paid in
any medium other than cash; except that such term shall not include
that part of the remuneration which, after remuneration equal to $3,000
has been paid to an individual by an employer with respect to employment
during any calendar year, is paid to such individual by such employer
with respect to employment during such calendar year.
(b) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Casual labor not in the course of the employer s trade or business;
(4) Service performed by an individual who has attained the age of sixty-five;
(5) Service performed as an officer or member of the crew of a vessel
documented under the laws of the United States or of any foreign country;
(6) Service performed in the employ of the United States Government
or of an instrumentality of the United States;
(7) Service performed in the employ of a State, a political subdivision
thereof, or an instrumentality of one or more States or political subdivisions;
(8) Service performed in the employ of a corporation, community chest,
fund, or foundation, organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals, no part of the net earnings
of which inures to the benefit of any private shareholder or individual.