EMPLOYMENT TAXES
See. 1603. Approval of state laws.
Sec. 1604 . Returns.
Sec. 1605 . Payment of taxes.
Sec. 1606 . Interstate commerce.
Sec. 1607. Definitions.
Sec. 1608 . Deductions as constructive payments.
Sec. 1609. Rules and regulations.
Sec. 1610. Other laws applicable.
CHAPTER 9-EMPLOYMENT TAXES
SUBCHAPTER A-EMPLOYMENT BY OTHERS THAN
CARRIERS
Part I-Tax on Employees
SEC. 1400. RATE OF TAX.
In addition to other taxes, there shall be levied, collected, and paid
upon the income of every individual a tax equal to the following per-
centages of the wages (as defined in section 1426 (a)) received by him
after December 31, 1936, with respect to employment (as defined in
section 1426 (b)) after such date:
(1) With respect to employment during the calendar year 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 11/2 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 21/2 per centum.
(5) With respect to employment after December 31, 1948, the
rate shall be 3 per centum.
SEC. 1401. DEDUCTION OF TAX FROM WAGES.
(a) REQUIREMENT.-T he tax imposed by section 1400 shall be col-
lected by the employer of the taxpayer, by deducting the amount of
the tax from the wages as and when paid.
(b) INDEMNIFICATION OF EMPLOYER.- Every employer required so
to deduct the tax shall be liable for the payment of such tax, and
shall be indemnified against the claims and demands of any person
for the amount of any such payment made by such employer.
(c) ADJUSTMENTS.- I f more or less than the correct amount of tax
imposed by section 1400 is paid with respect to any wage payment,
then, under regulations made under this subchapter, proper adjust-
ments 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. 1402. NON-DEDUCTIBILITY OF TAX FROM NET INCOME.
For the purposes of the income tax imposed by chapter 1 or by any
act of Congress in substitution therefor, the tax imposed by section
1400 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.
Part II-Tax on Employers
SEC. 1410. RATE OF TAX.
In addition to other taxes, every employer shall pay an excise tax,
with respect to having individuals in his employ, equal to the follow-
ing percentages of the wages (as defined in section 1426 (a)) paid
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