31.3101-2—Rates and computation of employee tax.

(a) Old-age, survivors, and disability insurance. The rates of employee tax for old-age, survivors, and disability insurance with respect to wages received in calendar years after 1954 are as follows:
Calendar year Percent
1955 and 1956 2
1957 and 1958 2.25
1959 2.5
1960 and 1961 3
1962 3.125
1963 to 1965, both inclusive 3.625
1966 3.85
1967 3.9
1968 3.8
1969 and 1970 4.2
1971 and 1972 4.6
1973 4.85
1974 to 2010, both inclusive 4.95
2011 and subsequent calendar years 5.95
(b) Hospital insurance. The rates of employee tax for hospital insurance with respect to wages received in calendar years after 1965 are as follows:
Calendar year Percent
1966 0.35
1967 .50
1968 to 1972, both inclusive .60
1973 1.0
1974 to 1977, both inclusive 0.90
1978 to 1980, both inclusive 1.10
1981 to 1985, both inclusive 1.35
1986 and subsequent calendar years 1.50
(c) Computation of employee tax. The employee tax is computed by applying to the wages received by the employee the rate in effect at the time such wages are received.

Code of Federal Regulations

Example. In 1972, employee A performed for employer X services which constituted employment (see § 31.3121(b)-2 ). In 1973 A receives from X $1,000 as remuneration for such services. The tax is payable at the 5.85 percent rate (4.85 percent plus 1.0 percent) in effect for the calendar year 1973 (the year in which the wages are received) and not at the 5.2 percent rate which was in effect for the calendar year 1972 (the year in which the services were performed).

Code of Federal Regulations

[T.D. 7374, 40 FR 30947, July 24, 1975]