CH. 22—RAILROAD RETIREMENT
TAX ACT
431
CHAPTER 22—RAILROAD RETIREMENT TAX ACT SUBCHAPTER SUBCHAPTER SUBCHAPTER SUBCHAPTER
A. B. C. D.
Tax on employees. Tax on employee representatives. Tax on employers. General provisions.
Subchapter A—Tax on Employees Sec. 3201. Rate of tax. Sec. 3202. Deduction of tax from compensation. SEC. 3201. RATE OF TAX.
In addition to other taxes, there is hereby imposed on the income of every employee a tax equal to 6% percent of so much of the compensation paid to such employee after December 31, 1954, for services rendered by him after such date as is not in excess of $300 for any calendar month. SEC. 3202. DEDUCTION OF TAX FROM
COMPENSATION.
(a) REQUIREMENT.—The tax imposed by section 3201 shall be collected by the employer of the taxpayer by deducting the amount of the tax from the compensation of the employee as and when paid. If an employee is paid compensation after December 31, 1954, by more than one employer for services rendered during any calendar month after 1954 and the aggregate of such compensation is in excess of $300, the tax to be deducted by each employer other than a subordinate unit of a national railway-labor-organization employer from the compensation paid by him to the employee with respect to such month shall be that proportion of the tax with respect to such compensation paid by all such employers which the compensation paid by him after December 31, 1954, to the employee for services rendered during such month bears to the total compensation paid by all such employers after December 31, 1954, to such employee for services rendered during such month; and in the event that the compensation so paid by such employers to the employee for services rendered during such month is less than $300, each subordinate unit of a national railwaylabor-organization employer shall deduct such proportion of any additional tax as the compensation paid by such employer after December 31, 1954, to such employee for services rendered during such month bears to the total compensation paid by all such employers after December 31, 1954, to such employee for services rendered during such month. (b) INDEMNIFICATION OF EMPLOYER.—Every employer
required
under subsection (a) to deduct the tax shall be made liable for the payment of such tax and shall not be liable to any person for the amount of any such payment.
3202(b)
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