CODE SECTIONS 480-482 (SECA); 1400-1432 AND REGULATIONS 128 (FICA); 1500-1538 (RAILROAD RETIREMENT); 1600-1611 AND REGULATIONS 107 (FUTA)
TO PROVIDE FUNDS for social security, the Code imposes three taxes on employment and one tax on self-employment. After they are collected by the Internal Revenue Service, amounts equivalent to the proceeds are placed in trust funds maintained in the Treasury.
One of these taxes, imposed by the Railroad Retirement Tax Act, affects railroad companies and their employees, employees' unions, and union employees and representatives. On the first $300 of monthly compensation paid to each employee, the employee is taxed 6 ¼ percent and the employer, 6¼ percent. A union representative is taxed 12 ½ percent on the first $300 of his monthly salary. The tax on the employee is collected by withholding from his wages, and the employer is held liable for payment. The retirement pensions and other benefits provided by law are paid out on the basis of certificates of the Railroad Retirement Board from a fund maintained in the Treasury. Since these taxes are of limited application, they will not be set forth in detail.
The other three taxes, which are of general application (only those covered by the Railroad Retirement Tax Act