Page:Federal Register, Vol. 1, No. 1.pdf/7

Rh policy (such as the right of assignment or the right to the surrender value on termination of his employment).

(e) Deductions by an employer from remuneration of an employee.—Amounts deducted from the remuneration of an employee by an employer constitute wages paid to the employee at the time of such deduction. It is immaterial that the Act, of any Act of Congress or the law of any State, requires or permits such deduction and the payment of the amount thereof to the United States, a State, or any political subdivision thereof (see section 1101 (e)).

(f) Payments by employers into employees’ funds.—Payments made by an employer into a stock bonus, pension, or profit-sharing fund constitute wages if such payments inure to the exclusive benefit of the employee and may be withdrawn by the employee at any time, or upon resignation or dismissal, or if the contract of employment requires such payment as part of the compensation. Whether or not under circumstances such payments constitute wages depends upon the particular facts of each case.

. 210. Adjustments of tax,—(a) If the amount of wages payable with respect to employment during the calendar year is computed and reported by the taxpayer in his return for such year, at an amount greater than the amount which is subsequently determined to have been payable, the over-payment of tax shall be refunded or credited. (See article 503 for general provisions applicable with respect to claims for refund or credit.)

(b) If the amount of wages payable with respect to employment during the calendar year is computed and reported by the taxpayer in his return for such year, at an amount less than the amount which is subsequently determined to have been actually payable, the taxpayer shall file with the collector a statement under oath of the amount of the difference, and the tax shall be paid with respect to such difference.

The taxpayer may credit against the tax imposed by section 901 the amount of contributions, with respect to employment during the taxable year, paid by him (before the date of filing his return for the taxable year) into an unemployment fund under a State Law. The total credit allowed to a taxpayer under this section for all contributions paid into unemployment funds with respect to employment during such taxable year shall not exceed 90 per centum of the tax against which it is credited, and credit shall be allowed only for contributions made under the laws of States certified for the taxable year as provided in section 903.

The term "unemployment fund" means a special fund, established under a State law and administered by a State agency, for the payment of compensation.

The term "contributions" means payments required by a State law to be made by an employer into an unemployment fund, to the extant that such payments are made by him without any part thereof being deducted or deductible from the wages of individuals in his employ.

. 211. Credit of contributions against tax.—(a) Subject to the limitations hereinafter prescribed in paragraph (b), the taxpayer may credit against the tax the total amount of his contributions under all State laws which have been found by the Social Security Board to contain the provisions specified in section 903 (a) of the Act; provided that no credit may be taken for a contribution under a State law if such State has not been duly certified for the calendar year to the Secretary by the Social Security Board.

(b) The allowance of contributions as credit against the tax is subject to the following limitations:

(1) The total credit allowed to any taxpayer for such contributions shall not in any case exceed 90 per cent of the tax against which such credit is applied.

Example (a): On January 15, 1937, M Company, engaged in the manufacture of typewriters, actually pays contributions, with respect to employment in 1936, totally $6,200 into the unemployment compensation fund of State A, and contributions totaling $3,000 into the unemployment compensation fund of State B. The M Company files its return on January 31, 1937, which discloses a total tax of $10,000. Of the total contributions of $9,200, the M Company may credit only the amount of $9,000 against the tax of $10,000 disclosed by the return. The result is that a tax of $1,000 in due and payable by M Company.

Example (b): If in example (’'a), above, M Company pays total contributions of only $7,00 into the unemployment compensation funds of State A and State B, the total tax due and payable for the year 1936 is $2,500 ($10,00 minus $7,500).

(2) The contributions must have been actually paid into the State unemployment fund before the date on which the return for the calendar year is required to be filed. (This date is January 31 next following the close of the calendar year unless the time for filing the return is extended, See articles 303 to 305.)

Example: The return of employer A for the calendar year 1936 is filed on January 31, 1937, and proper credit taken therein for contributions actually paid into a State unemployment fund prior to that date. Thereafter, in June 1937, additional contributions are paid by A to a State fund with respect to employment during the calendar year 1936. No part of such additional contributions is allowable as credit against the tax for the calendar year 1936, or for any other calendar year.

(3) The contributions must have been paid with respect to employment as defined in section 907 (c), that is, with respect to services performed by an employee within the United States and not excepted by the Act. (See articles 206 to 206 (7), inclusive.)

Example: Contributions are paid by an employer A into a State unemployment fund with respect to domestic services in a private home and also with respect to other services not excepted by section 907 (c). Such part of the contributions as was paid with respect to the domestic services in a private home (a class of service excepted by section 907 (c) of the act Act) is not an allowable credit against the tax.

(4) The contributions must have been paid with respect to services performed during the calendar year covered by the return.

Example: During 1936, contributions are paid by employer A into a State unemployment fund with respect to services performed during the calendar year 1936, and also with respect to services performed during 1935. Only contributions paid with respect to services performed in 1936 are allowable as credit against the tax for the calendar year 1936.

(c) If, subsequent to the filing of the return, a refund is made by a State to the taxpayer of any part of his contributions credited against the tax, the taxpayer is required to advise the Commissioner under oath of the date and amount of such refund and the reason therefor, and to pay the ax, if any, due as a result to such refund, together with interest from the date when the tax was due.

. 212. Proof of credit.—Credit against the tax for contributions paid into State unemployment funds shall be allowed unless the taxpayer claiming such credit shall have submitted to the Commissioner:

(1) A certificate of the proper officer of each State (the laws of which required the contributions to be paid) showing (a) the total amount of required contributions (exclusive of penalties and interest) actually paid under each law of the State which has been found by the Social Security Board to contain the provisions specified in section 903 (a) of the Act; (b) the amount of penalties and interest, if any; (c) the amount of contributions paid with respect to which contributions were paid; (e) the date upon which each such contribution was paid; (f) whether a claim for refund of such contributions or any part thereof is pending; and (g) whether a refund of such contributions or any part of thereof has been authorized or paid. If any refund has been authorized or