An act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
APPROPRIATION
SECTION 1. For the purpose of enabling each State to furnish financial assistance, as far as
practicable under the conditions in such State, to aged needy individuals, there is hereby authorized to be
appropriated for the fiscal year ended June 30, 1936, the sum of $49,750,000, and there is hereby authorized to
be appropriated for each fiscal year thereafter a sum sufficient to carry out the purposes of this title. The sums
made available under this section shall be used for making payments to States which have submitted, and had
approved by the Social Security Board established by Title VII (hereinafter referred to as the Board ), State
plans for old-age assistance.
STATE OLD-AGE ASSISTANCE PLANS
SEC. 2. (a) A State plan for old-age assistance must
(b) The Board shall approve any plan which fulfills the conditions specified in subsection (a), except that it shall
not approve any plan which imposes, as a condition of eligibility for old-age assistance under the plan-
PAYMENT TO STATES
SEC. 3. (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which has
an approved plan for old-age assistance, for each quarter, beginning with the quarter commencing July 1, 1935,
(b) The method of computing and paying such amounts shall be as follows:
(2) The Board shall then certify
to the Secretary of the Treasury the amount so estimated by the Board, reduced or increased, as the case may be,
by any sum by which it finds that its estimate for any prior quarter was greater or less than the amount which
should have been paid to the State under clause (1) of subsection (a) for such quarter, except to the extent that
such sum has been applied to make the amount certified for any prior quarter greater or less than the amount
estimated by the Board for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the
Division of Disbursement of the Treasury Department and prior to audit or settlement by the General
Accounting Office, pay to the State, at the time or times fixed by the Board, the amount so certified, increased
by 5 per centum.
OPERATION OF STATE PLANS
SEC. 4. In the case of any State plan for old-age assistance which has been approved by the Board, if the Board,
after reasonable notice and opportunity for hearing to the State agency administering or supervising the
administration of such plan, finds-
ADMINISTRATION
SEC. 5. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of
$250,000, for all necessary expenses of the Board in administering the provisions of this title.
DEFINITION
SEC. 6. When used in this title the term old age assistance means money payments to aged individuals.
OLD-AGE RESERVE ACCOUNT
Section 201. (a) There is hereby created an account in the Treasury of the United States to be known as the
Old-Age Reserve Account hereinafter in this title called the Account. There is hereby authorized to be
appropriated to the Account for each fiscal year, beginning with the fiscal year ending June 30, 1937, an amount
sufficient as an annual premium to provide for the payments required under this title, such amount to be
determined on a reserve basis in accordance with accepted actuarial principles, and based upon such tables of
mortality as the Secretary of the Treasury shall from time to time adopt, and upon an interest rate of 3 per
centum per annum compounded annually. The Secretary of the Treasury shall submit annually to the Bureau of
the Budget an estimate of the appropriations to be made to the Account.
OLD-AGE BENEFIT PAYMENTS
SEC. 202. (a) Every qualified individual (as defined in section 210) shall be entitled to receive, with respect to
the period beginning on the date he attains the age of sixty-five, or on January 1, 1942, whichever is the later,
and ending on the date of his death, an old-age benefit (payable as nearly as practicable in equal monthly
installments) as follows:
PAYMENTS UPON DEATH
SEC. 203. (a) If any individual dies before attaining the age of sixty-five, there shall be paid to his estate an
amount equal to 3 « per centum of the total wages determined by the Board to have been paid to him, with
respect to employment after December 31, 1936.
PAYMENTS TO AGED INDIVIDUALS NOT QUALIFIED FOR BENEFITS
SEC. 204. (a) There shall be paid in a lump sum to any individual who, upon attaining the age of sixty-five, is not
a qualified individual, an amount equal to 3 « per centum of the total wages determined by the Board to have been
paid to him, with respect to employment after December 31, 1936, and before he attained the age of sixty-five.
AMOUNTS OF $500 OR LESS PAYABLE TO ESTATES
SEC. 205. If any amount payable to an estate under section 203 or 204 is $500 or less, such amount may, under
regulations prescribed by the Board, be paid to the persons found by the Board to be entitled thereto under the
law of the State in which the deceased was domiciled, without the necessity of compliance with the requirements
of law with respect to the administration of such estate.
OVERPAYMENTS DURING LIFE
SEC. 206. If the Board finds that the total amount paid to a qualified individual under an old-age benefit during
his life was more than the correct amount to which he was entitled under section 202, and was 3 « per centum
or more of the total wages by which such old-age benefit was measurable, then upon his death there shall be
repaid to the United States by his estate the amount, if any, by which such total amount paid to him during his
life exceeds whichever of the following is the greater:
METHOD OF MAKING PAYMENTS
SEC. 207. The Board shall from time to time certify to the Secretary of the Treasury the name and address of
each person entitled to receive a payment under this title, the amount of such payment, and the time at which it
should be made, and the Secretary of the Treasury through the Division of Disbursement of the Treasury
Department, and prior to audit or settlement by the General Accounting Office, shall make payment in
accordance with the certification by the Board.
ASSIGNMENT
SEC. 208. The right of any person to any future payment under this title shall not be transferable or assignable,
at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to
execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or
insolvency law.
PENALTIES
SEC. 209. Whoever in any application for any payment under this title makes any false statement as to any
material fact, knowing such statement to be false, shall be fined not more than $1,000 or imprisoned for not
more than one year, or both.
DEFINITIONS
SEC. 210. When used in this title-- (a) The term wages means all remuneration for employment, including the
cash value of all remuneration paid in any medium other than cash; except that such term shall not include that
part of the remuneration which, after remuneration equal to $3,000 has been paid to an individual by an
employer with respect to employment during any calendar year, is paid to such employer with respect to
employment during such calendar year.
(c) The term qualified individual means any individual with respect to whom it appears to the satisfaction of
the Board that-
APPROPRIATION
SECTION 301. For the purpose of assisting the States in the administration of their unemployment compensation
laws, there is hereby authorized to be appropriated, for the fiscal year ending June 30, 1936, the sum of $4,000,000,
and for each fiscal year thereafter the sum of $49,000,000, to be used as hereinafter provided.
PAYMENTS TO STATES
SEC. 302. (a) The Board shall from time to time certify to the Secretary of the Treasury for payment to each
State which has an unemployment compensation law approved by the Board under Title IX, such amounts as the
Board determines to be necessary for the proper administration of such law during the fiscal year in which such
payment is to be made. The Board s determination shall be based on
PROVISIONS OF STATE LAWS
SEC. 303. (a) The Board shall make no certification for payment to any State unless it finds that
the law of such State, approved by the Board under Title IX, includes provisions for-
APPROPRIATION
SECTION 401. For the purpose of enabling each State to furnish financial assistance, as far as
practicable under the conditions in such State, to needy dependent children, there is hereby authorized to be
appropriated for the fiscal year ending June 30, 1936, the sum of $24,750,000, and there is hereby authorized to
be appropriated for each fiscal year thereafter a sum sufficient to carry out the purposes of this title. The sums
made available under this section shall be used for making payments to States which have submitted, and had
approved by the Board, State plans for aid to dependent children.
STATE PLANS FOR AID TO DEPENDENT CHILDREN
SEC. 402. (a) A State plan for aid to dependent children must
PAYMENT TO STATES
SEC. 403. (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which
has an approved plan for aid to dependent children, for each quarter, beginning with the quarter commencing
July 1, 1935, an amount, which shall be used exclusively for carrying out the State plan, equal to one-third of the
total of the sums expended during such quarter under such plan, not counting so much of such expenditure with
respect to any dependent child for any month as exceeds $18, or if there is more than one dependent child in the
same home, as exceeds $18 for any month with respect to one such dependent child and $12 for such month
with respect to each of the other dependent children.
OPERATION OF STATE PLANS
SEC. 404. In the case of any State plan for aid to dependent children which has been approved by the Board, if
the Board, after reasonable notice and opportunity for hearing to the State agency administering or supervising
the administration of such plan, finds-
ADMINISTRATION
SEC. 405. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of
$250,000 for all necessary expenses of the Board in administering the provisions of this
title.
DEFINITIONS
SEC. 406. When used in this title-
PART 1-MATERNAL AND CHILD HEALTH SERVICES
APPROPRIATION
SECTION 501. For the purpose of enabling each State to extend and improve, as far as practicable under the
conditions in such State, services for promoting the health of mothers and children, especially in rural areas and
in areas suffering from severe economic distress, there is hereby authorized to be appropriated for each fiscal
year, beginning with the fiscal year ending June 30, 1936, the sum of $3,800,000. The sums made available under this section shall be used for making
payments to States which have submitted, and had approved by the Chief of the Children s Bureau, State plans
for such services.
ALLOTMENTS TO STATES
SEC. 502. (a) Out of the sums appropriated pursuant to section 501 for each fiscal year the Secretary of Labor
shall allot to each State $20,000, and such part of $1,800,000 as he finds that the number of live births in such
State bore to the total number of live births in the United States, in the latest calendar year for which the Bureau
of the Census has available statistics.
APPROVAL OF STATE PLANS
SEC. 503. (a) A State plan for maternal and child-health services must
PAYMENT TO STATES
SEC. 504. (a) From the sums appropriate therefor and the allotments available under section 502 (a), the
Secretary of the Treasury shall pay to each State which has an approved plan for maternal and child-health
services, for each quarter beginning with the quarter commencing July 1935, an amount, which shall be used
exclusively for carrying out the State plan, equal to one-half of the total sum expended during such quarter for
carrying out such plan.
OPERATION OF STATE PLANS
SEC. 505. In the case of any State plan for maternal and child-health services which has been
approved by the Chief of the Children s Bureau, if the Secretary of Labor, after reasonable notice and
opportunity for hearing to the State agency administering or supervising the administration of such plan, finds
that in the administration of the plan there is a failure to comply substantially with any provision required by
section 503 to be included in the plan, he shall notify such State agency that further payments will not be made
to the State until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied he
shall make no further certification to the Secretary of the Treasury with respect to such State.
PART 2-SERVICES FOR CRIPPLED CHILDREN
APPROPRIATION
SEC. 511. For the purpose of enabling each State to extend and improve (especially in rural areas and in areas
suffering from severe economic distress), as far as practicable under the conditions in such State, services for
locating crippled children and for providing medical, surgical, corrective, and other services and care, and
facilities for diagnosis, hospitalization, and aftercare, for children who are crippled or who are suffering from
conditions which lead to crippling, there is hereby authorized to be appropriated for each fiscal year beginning
with the fiscal year ending June 30, 1936, the sum of $2,850,000. The sums made available under this section
shall be used for making payments to States which have submitted, and had approved by the Chief of the
Children s Bureau, State plans for such services.
ALLOTMENTS TO STATES
SEC. 512. (a) Out of the sums appropriated pursuant to section 511 for each fiscal year the Secretary of Labor
shall allot to each State $20,000, and the remainder to the States according to the need of each State as
determined by him after taking into consideration the number of crippled children in such State in need of the
services referred to section 511 and the cost of furnishing such service to them
APPROVAL OF STATE PLANS
SEC. 513. (a) A State plan for services for crippled children must
(b) The Chief of the Children s Bureau shall approve any plan which fulfills the conditions specified in
subsection (a) and shall thereupon notify the Secretary of Labor and the State agency of his approval.
PAYMENT TO STATES
SEC. 514. (a) From the sums appropriated therefor and the allotments available under section 512, the Secretary
of the Treasury shall pay to each State which has an approved plan for services for crippled children, for each
quarter, beginning the quarter commencing July 1, 1935, an amount which shall be used exclusively for carrying
out the State plan, equal to one-half of the total sum expended during such quarter for carrying out such plan.
OPERATION OF STATE PLANS
SEC. 515. In the case of any State plan for services for crippled children which has been approved by the Chief
of the Children s Bureau, if the Secretary of Labor, after reasonable notice and opportunity for hearing to the
State agency administering or supervising the administration of such plan finds that in the administration of the
plan there a failure to comply substantially with any provision required by section 513 to be included in the plan,
he shall notify such State agency that further payments will not be made to the State until he is satisfied that
there is no longer any such failure to comply. Until he is so satisfied he shall make no further certification to
the Secretary of the Treasury with respect to such State.
PART 3- CHILD WELFARE SERVICES
SEC. 521. (a) For the purpose of enabling the United States, through the Children s Bureau, to cooperate with
State public-welfare agencies establishing, extending, and strengthening, especially in predominantly rural areas,
public-welfare services (hereinafter in this section referred to as child-welfare services ) for the protection and
care of homeless, dependent, and neglected children, and children in danger of becoming delinquent, there is
hereby authorized to be appropriated for each fiscal year, beginning with the year ending June 30, 1936, the sum
of $1,500,000. Such amount shall be allotted by the Secretary of Labor for use by cooperating State public-
welfare agencies on the basis of plans developed jointly by the State agency and the Children s Bureau, to each
State, $10,000, and the remainder to each State on the basis of such plans, not to exceed such part of the
remainder as the rural population of such State bears to the total rural population of the United States. The
amount so allotted shall be expended for payment of part of the cost of district, county or other local child-
welfare services in areas predominantly rural, and for developing State services for the encouragement and assist-
ance of adequate methods of community child-welfare organization in areas predominantly rural and other areas
of special need. The amount of any allotment to a State under this section for any fiscal year remaining unpaid
to such State at the end of such fiscal year shall be available for payment to such State under this section until
the end of the second succeeding fiscal year. No payment to a State under this section shall be made out of its
allotment for any fiscal year until its allotment for the preceding fiscal year has been exhausted or has ceased to
be available.
PART 4- VOCATIONAL REHABILITATION
SEC. 531. (a) In order to enable the United States to cooperate with the States and Hawaii in extending and
strengthening their programs of vocational rehabilitation of the physically disabled, and to continue to carry out
the provisions and purposes of the Act entitled An Act to provide for the promotion of vocational rehabilitation
of persons disabled in industry or otherwise and their return to civil employment , approved June 2, 1920, as
amended (U.S.C., title 29, ch. 4; U.S.C., Supp. VII title 29, secs. 31, 32, 34, 35, 37, 39, and 40), there is hereby
authorized to be appropriated for the fiscal years ending June 30, 1936, and June 30, 1937, the sum of $841,000
for each such fiscal year in addition to the amount of the existing authorization, and for each fiscal year
thereafter the sum of $1,938,000. Of the sums appropriated pursuant to such authorization for each fiscal year,
$5,000 shall be apportioned to the Territory of Hawaii and the remainder shall be apportioned among the several
States in the manner provided in such Act of June 2, 1920, as amended.
PART 5- ADMINISTRATION
SEC. 541. (a) There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936,
the sum of $425,000, for all necessary expenses of the Children s Bureau in administering the provisions of this
title, except section 531.
APPROPRIATION
SECTION 601. For the purpose of assisting States, counties, health districts, and other political
subdivisions of the States in establishing and maintaining adequate public-health services, including the training of
personnel for State and local health work, there is hereby authorized to be appropriated for each fiscal year, beginning
with the fiscal year ending June 30,1936, the sum of $8,000,000 to be used as hereinafter provided.
STATE AND LOCAL PUBLIC HEALTH SERVICES
SEC. 602. (a) The Surgeon General of the Public Health Service, with the approval of the Secretary of the
Treasury, shall, at the beginning of each fiscal year, allot to the States the total of (1) the amount appropriated
for such year pursuant to section 601; and (2) the amounts of the allotments under this section for the preceding
fiscal year remaining unpaid to the States at the end of such fiscal year. The amounts of such allotments shall
be determined on the basis of (1) the population; (2) the special health problems; and (3) the financial needs; of
the respective States. Upon making such allotments the Surgeon General of the Public Health Service shall
certify the amounts thereof to the Secretary of the Treasury.
INVESTIGATIONS
SEC. 603. (a) There is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year
ending June 30, 1936, the sum of $2,000,000 for expenditure by the Public Health Service for investigation of disease
and problems of sanitation (including the printing and binding of the findings of such investigations), and f or the
pay and allowances and traveling expenses of personnel of the Public Health Service, including commissioned
officers, engaged in such investigations or detailed to cooperate with the health authorities of any State in carrying
out the purposes specified in section 601: Provided, That no personnel of the Public Health Service shall be detailed
to cooperate with the health authorities of any State except at the request of the proper authorities of such State.
ESTABLISHMENT
SECTION 701. There is hereby established a Social Security Board (in this Act referred to as the
Board ) to be composed of three members to be appointed by the President, by and with the advice and consent
of the Senate. During his term of membership on the Board , no member shall engage in any other business,
vocation, or employment. Not more than two of the members of the Board shall be members of the same
political party. Each member shall receive a salary at the rate of $10,000 a year and shall hold office for a term
of six years, except that
DUTIES OF THE SOCIAL SECURITY BOARD
SEC. 702. The Board shall perform the duties imposed upon it by this Act and shall also have the duty of
studying and making recommendations as to the most effective methods of providing economic security through
social insurance, and as to legislation and matters of administrative policy concerning old-age pensions,
unemployment compensation, accident compensation, and related
subjects.
EXPENSES OF THE BOARD
SEC. 703. The Board is authorized to appoint and fix the compensation of such officers and employees, and to
make such expenditures, as may be necessary for carrying out its functions under this Act. Appointments of
attorneys and experts may be made without regard to the civil-service laws.
REPORTS
SEC. 704. The Board shall make a full report to Congress, at the beginning of each regular session, of the
administration of the functions with which it is charged.
INCOME TAX ON EMPLOYEES
SECTION 801. In addition to other taxes, there shall be levied, collected, and paid upon the income of every
individual a tax equal to the following percentages of the wages (as defined in section 811) received by him after
December 31, 1936, with respect to employment (as defined in section 811) after such date:
DEDUCTION OF TAX FROM WAGES
SEC. 802. (a) The tax imposed by section 801 shall be collected by the employer of the taxpayer by deducting
the amount of the tax from the wages as and when paid. Every employer required so to deduct the tax is hereby
made liable for the payment of such tax, and is hereby indemnified against the claims and demands of any
person for the amount of any such payment made by such employer.
DEDUCTIBILITY FROM INCOME TAX
SEC. 803. For the purposes of the income tax imposed by Title I of the Revenue Act of 1934 or by any Act of
Congress in substitution therefor, the tax imposed by section 801 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.
EXCISE TAX ON EMPLOYERS
SEC. 804. In addition to other taxes, every employer shall pay an excise tax, with respect to having individuals
in his employ, equal to the following percentages of the wages (as defined in section 811) paid by him after
December 31, 1936, with respect to employment (as defined in section 811) after such date:
ADJUSTMENT OF EMPLOYERS TAX
SEC. 805. If more or less than the correct amount of tax imposed by section 804 is paid with respect
to any wage payment, then, under regulations made under this title, proper adjustments with respect the tax shall
be made, without interest, in connection with subsequent wage payments to the same individual by the same
employer.
REFUNDS AND DEFICIENCIES
SEC. 806. If more or less than the correct amount of tax imposed by section 801 or 804 is paid or deducted
with respect to any wage payment and the overpayment or underpayment of tax cannot be adjusted under section
802 (b) or 805 the amount of the overpayment shall be refunded and the amount of the underpayment shall be
collected in such manner and at such times (subject to the statutes of limitations properly applicable thereto) as
may be prescribed by regulations made under this title.
COLLECTION AND PAYMENT OF TAXES
SEC. 807. (a) The taxes imposed by this title shall be collected by the Bureau of Internal Revenue under the
direction of the Secretary of the Treasury and shall be paid into the Treasury of the United States as internal-
revenue collections. If the tax is not paid when due, there shall be added as part of the tax interest (except in the
case of adjustments made in accordance with the provisions of sections 802 (b) and 805) at the rate of one-half
of 1 per centum per month from the date the tax became due until paid.
RULES AND REGULATIONS
SEC. 808. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall
make and publish rules and regulations for the enforcement of this title.
SALE OF STAMPS BY POSTMASTERS
SEC. 809. The Commissioner of Internal Revenue shall furnish to the Postmaster General without prepayment a
suitable quantity of stamps, coupons, tickets, books, or other devices prescribed by the Commissioner under
section 807 for the collection or payment of any tax imposed by this title, to be distributed to, and kept on sale
by, all post offices of the first and second classes, and such post offices of the third and fourth classes as
PENALTIES
SEC. 810. (a) Whoever buys, sells, offers for sale, uses, transfers, takes or gives in exchange, or pledges or gives
in pledge, except as authorized in this title or in regulations made pursuant thereto, any stamp, coupon, ticket,
book, or other device, prescribed by the Commissioner of Internal Revenue under section 807 for the collection
or payment of any tax imposed by this title, shall be fined not more than $1,000 or imprisoned for not more than
six months, or both.
DEFINITIONS
SEC. 811. When used in this title- (a) The term wages means all remuneration for employment, including the
cash value of all remuneration paid in any medium other than cash; except that such term shall not include that
part of the remuneration which, after remuneration equal to $3,000 has been paid to an individual by an
employer with respect to employment during any calendar year, is paid to such individual by such employer with
respect to employment during such calendar year.
IMPOSITION OF TAX
SECTION 901. On and after January 1, 1936, every employer (as defined in section 907) shall pay for each
calendar year an excise tax, with respect to having individuals in his employ, equal to the following percentages
of the total wages (as defined in section 907) payable by him (regardless of the time of payment) with respect to
employment (as defined in section 907) during such calendar year:
CREDIT AGAINST TAX
SEC. 902. 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 of 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.
CERTIFICATION OF STATE LAWS
SEC. 903 (a) The Social Security Board shall approve any State law submitted to it, within thirty days of such
submission, which it finds provides that-
UNEMPLOYMENT TRUST FUND
SEC. 904. (a) There is hereby established in the Treasury of the United States a trust fund to be known as the
Unemployment Trust Fund , hereinafter in this title called the Fund . The Secretary of the Treasury is
authorized and directed to receive and hold in the Fund all moneys deposited therein by a State agency from a
State unemployment fund. Such deposit may be made directly with the Secretary of the Treasury or with any
Federal reserve bank or member bank of the Federal Reserve System designated by him for such purpose.
ADMINISTRATION, REFUNDS, AND PENALTIES
SEC. 905. (a) The tax imposed by this title shall be collected by the Bureau of Internal Revenue under the
direction of the Secretary of the Treasury and shall be paid into the Treasury of the United States as internal-
revenue collections. If the tax is not paid when due, there shall be added as part of the tax interest at the rate of
one-half of 1 per centum per month from the date the tax became due until paid.
INTERSTATE COMMERCE
SEC. 906. No person required under a State law to make payments to an unemployment fund shall be relieved
from compliance therewith on the ground that he is engaged in interstate commerce, or that the State law does
not distinguish between employees engaged in interstate commerce and those engaged in intrastate commerce.
DEFINITIONS
SEC. 907. When used in this title -- (a) The term employer does not include any person unless on each of
some twenty days during the taxable year, each day being in a different calendar week, the total number of
individuals who were in his employ for some portion of the day (whether or not at the same moment of time)
was eight or more.
RULES AND REGULATIONS
SEC. 908. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall
make and publish rules and regulations for the enforcement of this title, except sections 903, 904, and 910.
ALLOWANCE OF ADDITIONAL CREDIT
SEC. 909. (a) In addition to the credit allowed under section 902, a taxpayer may, subject to the conditions
imposed by section 910, credit against the tax imposed by section 901 for any taxable year after the taxable year
1937, an amount, with respect to each State law, equal to the amount, if any, by which the contributions, with
respect to employment in such taxable year, actually paid by the taxpayer under such law before the date of
filing his return for such taxable year, is exceeded by whichever of the following is the lesser- (1) The amount
of contributions which he would have been required to pay under such law for such taxable year if he had been
subject to the highest rate applicable from time to time throughout such year to any employer under such law; or
(2) Two and seven-tenths per centum of the wages payable by him with respect to employment with respect to
which contributions for such year were required under such law.
CONDITIONS OF ADDITIONAL CREDIT ALLOWANCE
SEC. 910. (a) A taxpayer shall be allowed the additional credit under section 909, with respect to his
contribution rate under a State law being lower, for any taxable year, than that of another employer subject to
such law, only if the Board finds that under such law--
APPROPRIATION
SECTION 1001. For the purpose of enabling each State to furnish financial assistance, as far as practicable
under the conditions in such State, to needy individuals who are blind, there is hereby authorized to be
appropriated for the fiscal year ending June 30, 1936, the sum of $3,000,000, and there is hereby authorized to
be appropriated for each fiscal year thereafter a sum sufficient to carry out the purposes of this title. The sums
made available under this section shall be used for making payments to States which have submitted, and had
approved by the Social Security Board, State plans for aid to the blind.
STATE PLANS FOR AID TO THE BLIND
SEC. 1002. (a) A State plan for aid to the blind must
PAYMENT TO STATES
SEC. 1003. (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which
has an approved plan for aid to the blind, for each quarter, beginning with the quarter commencing July 1, 1935,
OPERATION OF STATE PLANS
SEC. 1004. In the case of any State plan for aid to the blind which has been approved by the Board, if the
Board, after reasonable notice and opportunity for hearing to the State agency administering or supervising the
administration of such a plan, finds--
ADMINISTRATION
SEC. 1005. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936 the sum of
$30,000, for all necessary expenses of the Board in administering the provisions of this title.
DEFINITION
SEC. 1006. When used in this title the term aid to the blind means money payments to blind
individuals.
DEFINITIONS
SECTION 1101. (a) When used in this Act-
RULES AND REGULATIONS
SEC. 1102. The Secretary of the Treasury, the Secretary of Labor, and the Social Security Board respectively,
shall make and publish such rules and regulations, not inconsistent with this Act, as may be necessary to the
efficient administration of the functions with which each is charged under this Act.
SEPARABILITY
SEC. 1103. If any provision of this Act, or the application thereof to any person or circumstance is held invalid,
the remainder of the Act, and the application of such provision to other persons or circumstances shall not be
affected thereby.
RESERVATION OF POWER
SEC. 1104. The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress.
SHORT TITLE
SEC. 1105. This Act may be cited as the Social Security Act.
Approved, August 14, 1935.
(1) provide that it shall be in effect in all political
subdivisions of the State, and, if administered by them, be mandatory upon them;
(2) provide for financial participation by the State;
(3) either provide for the establishment or designation of a single State agency to
administer the plan, or provide for the establishment or designation of a single State agency to supervise the
administration of the plan;
(4) provide for granting to any individual, whose claim for old-age assistance is
denied, an opportunity for a fair hearing before such State agency;
(5) provide such methods of administration
(other than those relating to selection, tenure of office, and compensation of personnel) as are found by the Board
to be necessary for the efficient operation of the plan;
(6) provide that the State agency will make such reports,
in such form and containing such information, as the Board may from time to time require, and comply with
such provisions as the Board may from time to time find necessary to assure the correctness and verification of
such reports; and
(7) provide that, if the State or any of its political subdivisions collects from the estate of any
recipient of old-age assistance any amount with respect to old-age assistance furnished him under the plan, one-
half of the net amount so collected shall be promptly paid to the United States. Any payment so made shall be
deposited in the Treasury to the credit of the appropriation for the purposes of this title.
(1) An
age requirement of more than sixty-five years, except that the plan may impose, effective until January 1, 1940,
an age requirement of as much as seventy years; or
(2) Any residence requirement which excludes any resident
of the State who has resided therein five years during the nine years immediately preceding the application for
old-age assistance and has resided therein continuously for one year immediately preceding the application; or (3)
Any citizenship requirement which excludes any citizen of the United States.
(1) an amount, which shall be used exclusively as old-age assistance, equal to one-half of the total of the sums
expended during such quarter as old-age assistance under the State plan with respect to each individual who at
the time of such expenditure is sixty-five years of age or older and is not an inmate of a public institution, not
counting so much of such expenditure with respect to any individual for any month as exceeds $30, and
(2) 5 per
centum of such amount, which shall be used for paying the costs of administering the State plan or for old-age
assistance, or both, and for no other purpose: Provided, That the State plan, in order to be approved by the
Board, need not provide for financial participation before July 1, 1937, by the State, in the case of any State
which the Board, upon application by the State and after reasonable notice and opportunity for hearing to the
State, finds is prevented by its constitution from providing such financial participation.
(1) The Board shall, prior to the
beginning of each quarter, estimate the amount to be paid to the State for such quarter under the provisions of
clause (1) of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate of
the total sum to be expended in such quarter in accordance with the provisions of such clause, and stating the
amount appropriated or made available by the State and its political subdivisions for such expenditures in such
quarter, and if such amount is less than one-half of the total sum of such estimated expenditures, the source or
sources from which the difference is expected to be derived,
(B) records showing the number of aged individuals
in the State, and
(C) such other investigation as the Board may find necessary.
(1) that the plan has been so changed as to impose any age, residence, or
citizenship requirement prohibited by section 2 (b), or that in the administration of the plan any such prohibited
requirement is imposed, with the knowledge of such State agency, in a substantial number of cases; or
(2) that
in the administration of the plan there is a failure to comply substantially with any provision required by section
2 (a) to be included in the plan; the Board shall notify such State agency that further payments will not be made
to the State until the Board is satisfied that such prohibited requirement is no longer so imposed, and that there is
no longer any such failure to comply. Until it is so satisfied it shall make no further certification to the
Secretary of the Treasury with respect to such State.
(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the
Account as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in
interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by
the United States. For such purpose such obligations may be acquired
(1) on original issue at par, or
(2) by
purchase of outstanding obligations at the market price. The purposes for which obligations of the United States
may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at
par of special obligations exclusively to the Account. Such special obligations shall bear interest at the rate of 3
per centum per annum. Obligations other than such special obligations may be acquired for the Account only on
such terms as to provide an investment yield of not less than 3 per centum per annum.
(c) Any obligations acquired by the Account (except special obligations issued exclusively to the Account) may
be sold at the market price, and such special obligations may be redeemed at par plus accrued interest.
(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Account shall
be credited to and form a part of the Account.
(e) All amounts credited to the Account shall be available for making payments required under this title.
(f) The Secretary of the Treasury shall include in his annual report the actuarial status of the Account.
(1) If the total wages (as defined in section 210) determined by the Board to have
been paid to him, with respect to employment (as defined in section 210) after December 31, 1936, and before
he attained the age of sixty- five, were not more than $3,000, the old-age benefit shall be at a monthly rate of
one-half of 1 per centum of such total wages;
(2) If such total wages were more than $3,000, the old-age
benefit shall be at a monthly rate equal to the sum of the following:
(A) One-half of 1 per centum of $3,000;
plus
(B) One-twelfth of 1 per centum of the amount by which such total wages exceeded $3,000 and did not
exceed $45,000; plus
(C) One-twenty-fourth of 1 per centum of the amount by which such total wages exceeded
$45,000.
(b) In no case shall the monthly rate computed under subsection (a) exceed $85.
(c) If the Board finds at any time that more or less than the correct amount has theretofore been paid to any
individual under this section, then, under regulations made by the Board, proper adjustments shall be made in
connection with subsequent payments under this section to the same individual.
(d) Whenever the Board finds that any qualified individual has received wages with respect to regular
employment after he attained the age of sixty-five, the old-age benefit payable to such individual shall be
reduced, for each calendar month in any part of which such regular employment occurred, by an amount equal to
one month s benefit. Such reduction shall be made, under regulations prescribed by the Board, by deductions
from one or more payments of old-age benefit to such individual.
(b) If the Board finds that the correct amount of the old-age benefit payable to a qualified individual during his
life under section 202 was less than 3 « per centum of the total wages by which such old-age benefit was
measurable, then there shall be paid to his estate a sum equal to the amount, if any, by which such 3 « per
centum exceeds the amount (whether more or less than the correct amount) paid to him during his life as old-age
benefit.
(c) If the Board finds that the total amount paid to a qualified individual under an old-age benefit during his life
was less than the correct amount to which he was entitled under section 202, and that the correct amount of such
old-age benefit was 3 « per centum or more of the total wages by which such old-age benefit was measurable,
then there shall be paid to his estate a sum equal to the amount, if any, by which the correct amount of the old-
age benefit exceeds the amount which was so paid to him during his life.
(b) After any individual becomes entitled to any payment under subsection (a), no other payment shall be made under
this title in any manner measured by wages paid to him, except that any part of any payment under subsection (a)
which is not paid to him before his death shall be paid to his estate.
(1) Such 3 « per centum, or
(2) the correct amount to
which he was entitled under section 202.
(b) The term employment means any service, of whatever nature, performed within the United States by an
employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Casual
labor not in the course of the employer s trade or business;
(4) Service performed as an officer or member of
the crew of a vessel documented under the laws of the United States or of any foreign country;
(5) Service
performed in the employ of the United States Government or of an instrumentality of the United States;
(6) Service performed in the employ of a State, a political subdivision thereof, or an instrumentality of one or more
States or political subdivisions;
(7) Service performed in the employ of a corporation, community chest, fund,
or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational
purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to
the benefit of any private shareholder or individual.
(1) He is at least sixty-five years of age; and
(2) The total amount of wages paid to him, with
respect to employment after December 31, 1936, and before he attained the age of sixty-five, was not less than
$2,000; and
(3) Wages were paid to him, with respect to employment on some five days after December 31,
1936, and before he attained the age of sixty-five, each day being in a different calendar year.
(1) the population of the State;
(2) an estimate of the number of persons covered by the State law and of the cost of proper administration of such law;
and
(3) such other factors as the Board finds relevant. The Board shall not certify for payment under this section
in any fiscal year a total amount in excess of the amount appropriated therefor for such fiscal year.
(b) Out of the sums appropriated therefor, the Secretary of the Treasury shall, upon receiving a certification
under subsection
(a), pay, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, to the State agency charged with
the administration of such law the amount so certified.
(1) Such methods of administration (other than those relating to selection, tenure of office, and compensation of personnel) as are
found by the Board to be reasonably calculated to insure full payment of unemployment compensation when due;
and
(2) Payment of unemployment compensation solely through public employment offices in the State or such
other agencies as the Board may approve; and
(3) Opportunity for a fair hearing, before an impartial tribunal, for all individuals whose claims for
unemployment compensation are denied; and
(4) The payment of all money received in the unemployment fund
of such State, immediately upon such receipt, to the Secretary of the Treasury to the credit of the Unemployment
Trust Fund established by section 904; and
(5) Expenditure of all money requisitioned by the State agency from
the Unemployment Trust Fund, in the payment of unemployment compensation, exclusive of expenses of admin-
istration; and
(6) The making of such reports, in such form and containing such information, as the Board may
from time to time require, and compliance with such provisions as the Board may from time to time find
necessary to assure the correctness and verification of such reports; and
(7) Making available upon request to any agency of the United States charged with the administration of public works or assistance through public
employment, the name, address, ordinary occupation, and employment status of each recipient of unemployment
compensation, and a statement of such recipient s rights to further compensation under such law.
(b) Whenever the Board, after reasonable notice and opportunity for hearing to the State agency charged with
the administration of the State law finds that in the administration of the law there is--
(1) a denial, in a substantial number of cases, of unemployment compensation to individuals entitled thereto
under such law; or
(2) a failure to comply substantially with any provision specified in subsection (a); the
Board shall notify such State agency that further payments will not be made to the State until the Board is
satisfied that there is no longer any such denial or failure to comply. Until it is so satisfied it shall make no
further certification to the Secretary of the Treasury with respect to such State.
(1) provide that it shall be in effect in all political
subdivisions of the State, and, if administered by them, be mandatory upon them;
(2) provide for financial
participation by the State;
(3) either provide for the establishment or designation of a single State agency to
administer the plan, or provide for the establishment or designation of a single State agency to supervise the
administration of the plan;
(4) provide for granting to any individual, whose claim with respect to aid to a
dependent child is denied, an opportunity for a fair hearing before such State agency;
(5) provide such methods
of administration (other than those relating to selection, tenure of office, and compensation of personnel) as are
found by the Board to be necessary for the efficient operation of the plan; and
(6) provide that the State agency
will make such reports, in such form and containing such information, as the Board may from time to time
require, and comply with such provisions as the Board may from time to time find necessary to assure the
correctness and verification of such reports.
(b) The Board shall approve any plan which fulfills the conditions specified in subsection (a) except that it shall
not approve any plan which imposes as a condition of eligibility for aid to dependent children, a residence
requirement which denies aid with respect to any child residing in the State
(1) who has resided in the State for
one year immediately preceding the application for such aid or
(2) who was born within the State within one
year immediately preceding the application, if its mother has resided in the State for one year immediately
preceding the birth.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the beginning of each quarter, estimate the amount to be paid to the State for such quarter under the provisions of
subsection
(a), such estimate to be based on
(A) a report filed by the State containing its estimate of the total
sum to be expended in such quarter in accordance with the provisions of such subsection and stating the amount
appropriated or made available by the State and its political subdivisions for such expenditures in such quarter,
and if such amount is less than two-thirds of the total sum of such estimated expenditures, the source or sources
from which the difference is expected to be derived,
(B) records showing the number of dependent children in
the State, and
(C) such other investigation as the Board may find necessary.
(2) The Board shall then certify to
the Secretary of the Treasury the amount so estimated by the Board, reduced or increased, as the case may be,
by any sum by which it finds that its estimate for any prior quarter was greater or less than the amount which
should have been paid to the State for such quarter, except to the extent that such sum has been applied to make
the amount certified for any prior quarter greater or less than the amount estimated by the Board for such prior
quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the
Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the
time or times fixed by the Board, the amount so certified.
(1) that the plan has been so changed as to impose any residence
requirement prohibited by section 402 (b), or that in the
administration of the plan any such prohibited requirement is imposed, with the knowledge of such State agency,
in a substantial number of cases; or
(2) that in the administration of the plan there is a failure to comply
substantially with any provision required by section 402 (a) to be included in the plan; the Board shall notify
such State agency that further payments will not be made to the State until the Board is satisfied that such
prohibited requirement is no longer so imposed, and that there is no longer any such failure to comply. Until it
is so satisfied it shall make no further certification to the Secretary of the Treasury with respect to such State.
(a) The term dependent child means a child under the age of sixteen who
has been deprived of parental support or care by reason of the death, continued absence from the home, or
physical or mental incapacity of a parent, and who is living with his father, mother, grandfather, grandmother,
brother, sister, stepfather, stepmother, stepbrother, stepsister, uncle, or aunt, in a place of residence maintained by
one or more of such relatives as his or their own home;
(b) The term aid to dependent children means money payments with respect to a dependent child or dependent
children.
(b) Out of the sums appropriated pursuant to section 501 for each fiscal year the Secretary of Labor shall allot
to the States $980,000 (in addition to the allotments made under subsection (a)), according to the financial need
of each State for assistance in carrying out its State plan, as determined by him after taking into consideration the
number of live births in such State.
(c) The amount of any allotment to a State under subsection (a) for any fiscal year remaining unpaid to such
State at the end of such fiscal year shall be available for payment to such State under section 504 until the end
of the second succeeding fiscal year. No payment to a State under section 504 shall be made out of its allotment
for any fiscal year until its allotment for the preceding fiscal year has been exhausted or has ceased to be
available.
(2) provide for the administration of the plan by the State health agency or the supervision of the
administration of the plan by the State health agency;
(3) provide such methods of administration (other than
those relating to selection, tenure of office, and compensation of personnel) as are necessary for the efficient
operation of the plan;
(4) provide that the State health agency will make such reports, in such form and
containing such information, as the Secretary of Labor may from time to time require, and comply with such
provisions as he may from time to time find necessary to assure the correctness and verification of such reports;
(5) provide for the extension and improvement of local maternal and child-health services administered by local
child health units;
(6) provide for cooperation with medical, nursing, and welfare groups and organizations; and
(7) provide for the development of demonstration services in needy areas and among groups in special need.
(b) The Chief of the Children s Bureau shall approve any plan which fulfills the conditions specified in
subsection (a) and shall thereupon notify the Secretary of Labor and the State health agency of his approval.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Secretary of Labor shall,
prior the beginning of each quarter, estimate the amount to be paid to the State for such
quarter under the provisions of subsection (a), such estimate to be based on
(A) a report filed by the State
containing its estimate of the total sum to be expended in such quarter in accordance with the provisions of such
subsection and stating the amount appropriated or made available by the State and its political subdivisions for
such expenditures in such quarter, and if such amount is less than one-half of the total sum of such estimated
expenditures, the source or sources from which the difference is expected to be derived, and
(B) such investi gation as he may find necessary.
(2) The Secretary of Labor shall then certify the amount so estimated by him
to the Secretary of the Treasury, reduced or increased, as the case may be, by any sum by which the Secretary of
Labor finds that his estimate for any prior quarter was greater or less than the amount, which should have been
paid to the State for such quarter, except to the extent that such sum has been applied to make the amount
certified for any prior quarter greater or less than the amount, estimated by the Secretary of Labor for such prior
quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the
Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the
time or times fixed by the Secretary of Labor, the amount so certified.
(c) The Secretary of Labor shall from time to time certify to the Secretary of the Treasury the amounts to be
paid to the States from the allotments available under section 502 (b), and the
Secretary of the Treasury shall, through the Division of Disbursement of the Treasury Department and prior to
audit or settlement by the General Accounting Office, make payments of such amounts from such allotments at
the time or times specified by the Secretary of Labor.
(b) The amount of any allotment to a State under subsection (a) for any fiscal year remaining unpaid to such
State at the end of such fiscal year shall be available for payment to such State under section 514 until the end
of the second succeeding fiscal year. No payment to a State under section 514 shall be made out of its allotment
for any fiscal year until its allotment for the preceding fiscal year has been exhausted or has ceased to be
available.
(1) provide for financial participation by the
State;
(2) provide for the administration of the plan by a State agency or the supervision of the administration of
the plan by a State agency;
(3) provide such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are necessary for the efficient operation of the plan;
(4) provide that the State agency will make such reports, in such form and containing such information, as the
Secretary of Labor may from time to time require, and comply with such provisions as he may from time to
time find necessary to assure the correctness and verification of such reports;
(5) provide for carrying out the purposes specified in section 511; and
(6) provide for cooperation with medical, health, nursing, and welfare
groups and organizations and with any agency in such State charged with administering State laws providing for
vocational rehabilitation of physically handicapped children.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Secretary of Labor shall,
prior the beginning of each quarter, estimate the amount to be paid to the State for such quarter under the
provisions of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate
of the total sum to be expended in such quarter in accordance with the provisions of such subsection and stating
the amount appropriated or made available by the State and its political subdivisions for such expenditures in
such quarter and if such amount is less than one-half of the total sum of such estimated expenditures the source
or sources from which the difference is expected to be derived, and
(B) such investigation as he may find necessary.
(2) The Secretary of Labor shall then certify the amount so estimated by him to the Secretary of the
Treasury, reduced or increased as the case may be, by any sum by which the Secretary of Labor finds that his
estimate for any prior quarter was greater or less than the amount which should have been paid to the State for
such quarter, except to the extent that such sum has been applied to make the amount certified for any prior
quarter greater or less than the amount estimated by the Secretary of Labor for such prior quarter.
(3) The
Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and
prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the
Secretary of Labor, the amount so certified.
(b) From the sums appropriated therefor and the allotments available under subsection (a) the Secretary of Labor
shall from time to time certify to the Secretary of the Treasury the amounts to be paid to the States, and the
Secretary of the Treasury shall, through the Division of Disbursement of the Treasury Department and prior to
audit or settlement by the General Accounting Office, make payments of such amounts from such allotments at
the time or times specified by the Secretary of Labor.
(b) For the administration of such Act of June 2, 1920, as amended, by the Federal agency authorized to
administer it, there is hereby authorized to be appropriated for the fiscal years ending June 30, 1936, and June
30, 1937, the sum of $22,000 for each such fiscal year in addition to the amount of the existing authorization,
and for each fiscal year thereafter the sum of $102,000.
(b) The Children s Bureau shall make such studies and investigations as will promote the efficient
administration of this title, except section 531.
(c) The Secretary of Labor shall include in his annual report to Congress a full account of the
administration of this title, except section 531.
(b) The amount of an allotment to any State under subsection (a) for any fiscal year, remaining unpaid at the
end of such fiscal year, shall be available for allotment to States under subsection (a) for the succeeding fiscal
year, in addition to the amount appropriated for such year.
(c) Prior to the beginning of each quarter of the fiscal year, the Surgeon General of the Public Health Service
shall, with the approval of the Secretary of the Treasury, determine in accordance with rules and regulations
previously prescribed by such Surgeon General after consultation with a conference of the State and Territorial
health authorities, the amount to be paid to each State for such quarter from the allotment to such State, and shall
certify the amount so determined to the Secretary of the Treasury. Upon receipt of such certification, the
Secretary of the Treasury shall, through the Division of Disbursement of the Treasury Department and prior to
audit or settlement by the General Accounting Office, pay in accordance with such certification.
(d) The moneys so paid to any State shall be expended solely in carrying out the purposes specified in section
601, and in accordance with plans presented by the health authority of such State and approved by the Surgeon
General of the Public Health Service.
(b) The personnel of the Public Health Service paid from any appropriation not made pursuant to subsection (a)
may be detailed to assist in carrying out the purposes of this title. The appropriation from which they are paid
shall be reimbursed from the appropriation made pursuant to subsection (a) to the extent of their salaries and
allowances for services performed while so detailed.
(c) The Secretary of the Treasury shall include in his annual report to Congress a full account of the
administration of this title.
(1) any member appointed to fill a vacancy occurring prior to the expiration of the term
for which his predecessor was appointed, shall be appointed for the remainder of such term; and
(2) the terms of
office of the members first taking office after the date of the enactment of this Act shall expire, as designated by
the President at the time of appointment, one at the end of two years, one at the end of four years, and one at the
end of six years, after the date of the enactment of this Act. The President shall designate one of the members
as the chairman of the Board.
(1) With respect to
employment during the calendar years 1937, 1938, and 1939, the rate shall be 1 per centum.
(2) With respect to
employment during the calendar years 1940, 1941, and 1942, the rate shall 1 « 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 2 « per centum.
(5) With
respect to employment after December 31, 1948, the rate shall be 3 per centum.
(b) If more or less than the correct amount of tax imposed by section 801 is paid with respect to any wage
payment, then, under regulations made under this title, proper adjustments, 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.
(1) With respect to
employment during the calendar years 1937, 1938, and 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 1 « 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 2 « per centum.
(5)
With respect to employment after December 31, 1948, the rate shall be 3 per centum.
(b) Such taxes shall be collected and paid in such manner, at such times, and under such conditions, not
inconsistent with this title (either by making and filing returns, or by stamps, coupons, tickets, books, or other
reasonable devices or methods necessary or helpful in securing a complete and proper collection and payment of
the tax or in securing proper identification of the taxpayer), as may be prescribed by the Commissioner of
Internal Revenue, with the approval of the Secretary of the Treasury.
(c) All provisions of law, including penalties, applicable with respect to any tax imposed by section 600 or
section 800 of the Revenue Act of 1926 and the provisions of section 607 of the Revenue Act of 1934, shall,
insofar as applicable and not inconsistent with the provisions of this title, be applicable with respect to the taxes
imposed by this title.
(d) In the payment of any tax under this title a fractional part of a cent shall be disregarded unless it amounts to
one-half cent or more, in which case it shall be increased to 1 cent.
(1) are
located in county seats, or
(2) are certified by the Secretary of the Treasury to the Postmaster General as
necessary to the proper administration of this title. The Postmaster General may require each such postmaster to
furnish bond in such increased amount as he may from time to time determine, and each such postmaster shall
deposit the receipts from the sale of such stamps, coupons, tickets, books, or other devices, to the credit of, and
render accounts to, the Postmaster General at such times and in such form as the Postmaster General may by
regulations prescribe. The Postmaster General shall at least once a month transfer to the Treasury, as internal-
revenue collections all receipts so deposited together with a statement of the additional expenditures in the
District of Columbia and elsewhere incurred by the Post Office Department in performing the duties imposed
upon said Department by this Act, and the Secretary of the Treasury is hereby authorized and directed to advance
from time to time to the credit of the Post Office Department from appropriations made for the collection of the
taxes imposed by this title, such sums as may be required for such additional expenditures incurred by the Post
Office Department.
(b) Whoever, with intent to defraud, alters, forges, makes, or counterfeits any stamp, coupon, ticket, book, or
other device prescribed by the Commissioner of Internal Revenue under section 807 for the collection or payment
of any tax imposed by this title, or uses, sells, lends, or has in his possession any such altered, forged, or
counterfeited stamp, coupon, ticket, book, or other device, or makes, uses, sells, or has in his possession any ma-
terial in imitation of the material used in the manufacture of such stamp, coupon, ticket, book, or other device,
shall be fined not more than $5,000 or imprisoned not more than five years, or both.
(b) The term employment means any service, of whatever nature, performed within the United States by an
employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Casual labor not in the course of the employer s trade or business;
(4) Service performed by an individual who
has attained the age of sixty-five;
(5) Service performed as an officer or member of the crew of a vessel
documented under the laws of the United States or of any foreign country;
(6) Service performed in the employ
of the United States Government or of an instrumentality of the United States;
(7) Service performed in the
employ of a State, a political subdivision thereof, or an instrumentality of one or more States or political
subdivisions;
(8) Service performed in the employ of a corporation, community chest, fund, or foundation,
organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any
private shareholder or individual.
(1) With respect to employment during the calendar year 1936 the rate shall be 1 per centum;
(2) With respect
to employment during the calendar year 1937 the rate shall be 2 per centum;
(3) With respect to employment
after December 31, 1937, the rate shall be 3 per centum.
(1) All compensation is to be paid through public employment offices
in the State or such other agencies as the Board may approve;
(2) No compensation shall be payable with
respect to any day of unemployment occurring within two years after the first day of the first period with respect
to which contributions are required;
(3) All money received in the unemployment fund shall immediately upon
such receipt be paid over to the Secretary of the Treasury to the credit of the Unemployment Trust Fund
established by section 904;
(4) All money withdrawn from the Unemployment Trust Fund by the State agency
shall be used solely in the payment of compensation, exclusive of expenses of administration;
(5) Compensation
shall not be denied in such State to any otherwise eligible individual for refusing to accept new work under any
of the following conditions:
(A) If the position offered is vacant due directly to a strike, lockout, or other labor
dispute;
(B) if the wages, hours, or other conditions of the work offered are substantially less favorable to the
individual than those prevailing for similar work in the locality;
(C) if as a condition of being employed the
individual would be required to join a company union or to resign from or refrain from joining any bona-fide
labor organization;
(6) All the rights, privileges, or immunities conferred by such law or by acts done pursuant
thereto shall exist subject to the power of the legislature to amend or repeal such law at any time. The Board
shall, upon approving such law, notify the Governor of the State of its approval.
(b) On December 31 in each taxable year the Board shall certify to the Secretary of the Treasury each State
whose law it has previously approved, except that it shall not certify any State which, after reasonable notice and
opportunity for hearing to the State agency, the Board finds has changed its law so that it no longer contains the
provisions specified in subsection (a) or has with respect to such taxable year failed to comply substantially with
any such provision.
(c) If, at any time during the taxable year, the Board has reason to believe that a State whose law it has
previously approved, may not be certified under subsection (b), it shall promptly so notify the Governor of such
State.
(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in his
judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing
obligations of the United States or in obligations guaranteed as to both principal and interest by the United
States. For such purpose such obligations may be acquired
(1) on original issue at par, or
(2) by purchase of
outstanding obligations at the market price. The purposes for which obligations of the United States may be is-
sued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of
special obligations exclusively to the Fund. Such special obligations shall bear interest at a rate equal to the
average rate of interest, computed as of the end of the calendar month next preceding the date of such issue,
borne by all interest-bearing obligations of the United States then forming part of the public debt; except that
where such average rate is not a multiple of one eighth of 1 per centum, the rate of interest of such special
obligations shall be the multiple of one-eighth of 1 per centum next lower than such average rate. Obligations
other than such special obligations may be acquired for the Fund only on such terms as to provide an investment
yield not less than the yield which would be required in the case of special obligations if issued to the Fund
upon the date of such acquisition.
(c) Any obligations acquired by the Fund (except special obligations issued exclusively to the Fund) may be
sold at the market price, and such special obligations may be redeemed at par plus accrued interest.
(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be
credited to and form a part of the Fund.
(e) The Fund shall be invested as a single fund, but the Secretary of the Treasury shall maintain a separate book
account for each State agency and shall credit quarterly on March 31, June 30,
September 30, and December 31, of each year, to each account, on the basis of the average daily balance of such
account, a proportionate part of the earnings of the Fund for the quarter ending on such date.
(f) The Secretary of the Treasury is authorized and directed to pay out of the Fund to any State agency such
amount as it may duly requisition, not exceeding the amount standing to the account of such State agency at the
time of such payment.
(b) Not later than January 31, next following the close of the taxable year, each employer shall make a return of
the tax under this title for such taxable year. Each such return shall be made under oath, shall be filed with the
collector of internal revenue for the district in which is located the principal place of business of the employer,
or, if he has no principal place of business in the United States, then with the collector at Baltimore, Maryland,
and shall contain such information and be made in such manner as the Commissioner of Internal Revenue, with
the approval of the Secretary of the Treasury, may by regulations prescribe. All provisions of law (including
penalties) applicable in respect of the taxes imposed by section 600 of the Revenue Act of 1926, shall, insofar as
not inconsistent with this title, be applicable in respect of the tax imposed by this title. The Commissioner may
extend the time for filing the return of the tax imposed by this title, under such rules and regulations as he may
prescribe with the approval of the Secretary of the Treasury, but no such extension shall be for more than sixty
days.
(c) Returns filed under this title shall be open to inspection in the same manner, to the same extent, and subject
to the same provisions of law, including penalties, as returns made under Title II of the Revenue Act of 1926.
(d) The taxpayer may elect to pay the tax in four equal installments instead of in a single payment, in which
case the first installment shall be paid not later than the last day prescribed for the filing of returns, the second
installment shall be paid on or before the last day of the third month, the third installment on or before the last
day of the sixth month, and the fourth installment on or before the last day of the ninth month, after such last
day. If the tax or any installment thereof is not paid on or before the last day of the period fixed for its
payment, the whole amount of the tax unpaid shall be paid upon notice and demand from the collector.
(e) At the request of the taxpayer the time for payment of the tax or any installment thereof may be extended
under regulations prescribed by the Commissioner with the approval of the Secretary of the Treasury, for a
period not to exceed six months from the last day of the period prescribed for the payment of the tax or any
installment thereof. The amount of the tax in respect of which any extension is granted shall be paid (with inter-
est at the rate of one-half of 1 per centum per month) on or before the date of the expiration of the period of the
extension.
(f) In the payment of any tax under this title a fractional part of a cent shall be disregarded unless it amounts to
one-half cent or more, in which case it shall be increased to 1 cent.
(b) The term wages means all remuneration for employment, including the cash value of all remuneration paid
in any medium other than cash.
(c) The term employment means any service, of whatever nature, performed within the United States by an
employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Service performed as an officer or member of a crew of a vessel on the navigable waters of the United States;
(4) Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by
a child under the age of twenty-one in the employ of his father or mother;
(5) Service performed in the employ
of the United States Government or of an instrumentality of the United States;
(6) Service performed in the employ of a State, a political subdivision thereof, or an instrumentality of one or more States or political
subdivisions;
(7) Service performed in the employ of a corporation, community chest, fund, or foundation,
organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any
private shareholder or individual.
(d) The term State agency means any State officer, board, or other authority, designated under a State law to
administer the unemployment fund in such State.
(e) The term unemployment fund means a special fund, established under a State law and administered by a
State agency, for the payment of compensation.
(f) The term contributions means payments required by a State law to be made by an employer into an
unemployment fund, to the extent that such payments are made by him without any part thereof being deducted
or deductible from the wages of individuals in his employ.
(g) The term compensation means cash benefits payable to individuals with respect to their unemployment.
(b) If the amount of the contributions actually so paid by the taxpayer is less than the amount which he should
have paid under the State law, the additional credit under subsection (a) shall be reduced proportionately.
(c) The total credits allowed to a taxpayer under this title shall not exceed 90 per centum of the tax against
which such credits are taken.
(1) Such lower rate, with respect to contributions to a
pooled fund, is permitted on the basis of not less than three years of compensation experience;
(2) Such lower
rate, with respect to contributions to a guaranteed employment account, is permitted only when his guaranty of
employment was fulfilled in the preceding calendar year, and such guaranteed employment account amounts to
not less than 7 « per centum of the total wages payable by him, in accordance with such guaranty, with respect
to employment in such State in the preceding calendar year;
(3) Such lower rate, with respect to contributions
to a separate reserve account, is permitted only when
(A) compensation has been payable from such account
throughout the preceding calendar year, and
(B) such account amounts to not less than five times the largest
amount of compensation paid from such account within any one of the three preceding calendar years, and
(C) such account amounts to not less than 7 « per centum of the total wages payable by him (plus the total
wages payable by any other employers who may be contributing to such account) with respect to employment in
such State in the preceding calendar year.
(b) Such additional credit shall be reduced, if any contributions under such law are made by such taxpayer at a
lower rate under conditions not fulfilling the requirements of subsection (a), by the amount bearing the same
ratio to such additional credit as the amount of contributions made at such lower rate bears to the total of his
contributions paid for such year under such law.
(c) As used in this section-
(1) The term reserve account means a separate account in an unemployment
fund, with respect to an employer or group of employers, from which compensation is payable only with respect
to the unemployment of individuals who were in the employ of such employer, or of one of the employers
comprising the group.
(2) The term pooled fund means an unemployment fund or any part thereof in which
all contributions are mingled and undivided, and from which compensation is payable to all eligible individuals,
except that to individuals last employed by employers with respect to whom reserve accounts are maintained by
the State agency, it is payable only when such accounts are exhausted.
(3) The term guaranteed employment
account means a separate account, in an unemployment fund, of contributions paid by an employer (or group of
employers) who
(A) guarantees in advance thirty hours of wages for each of forty calendar weeks (or more,
with one weekly hour deducted for each added week guaranteed) in twelve months, to all the individuals in his
employ in one or more distinct establishments, except that any such individual s guaranty may commence after a
probationary period (included within twelve or less consecutive calendar weeks), and
(B) gives security or
assurance, satisfactory to the State agency, for the fulfillment of such guaranties, from which account
compensation shall be payable with respect to the unemployment of any such individual whose guaranty is not
fulfilled or renewed and who is otherwise eligible for compensation under the State law.
(4) The term year of
compensation experience , as applied to an employer, means any calendar year throughout which compensation
was payable with respect to any individual in his employ who became unemployed and was eligible for
compensation.
(1) provide that it shall be in effect in all political
subdivisions of the State, and, if administered by them, be mandatory upon them;
(2) provide for financial
participation by the State;
(3) either provide for the establishment or designation of a single State agency to
administer the plan, or provide for the establishment or designation of a single State agency to supervise the
administration of the plan;
(4) provide for granting to any individual, whose claim for aid is denied, an oppor-
tunity for a fair hearing before such State agency;
(5) provide such methods of administration (other than those
relating to selection, tenure of office, and compensation of personnel) as are found by the Board to be necessary
for the efficient operation of the plan;
(6) provide that the State agency will make such reports, in such form and
containing such information, as the Board may from time to time require, and comply with such provisions as
the Board may from time to time find necessary to assure the correctness and verification of such reports; and
(7) provide that no aid will be furnished any individual under the plan with respect to any period with respect to
which he is receiving old-age assistance under the State plan approved under section 2 of this Act.
(b) The Board shall approve any plan which fulfills the conditions specified in subsection (a), except that it
shall not approve any plan which imposes, as a condition of eligibility for aid to the blind under the plan-
(1)
Any residence requirement which excludes any resident of the State who has resided therein five years during the
nine years immediately preceding the application for aid and has resided therein continuously for one year
immediately preceding the application or
(2) Any citizenship requirement which excludes any citizen of the
United States.
(1) an amount which shall be used exclusively as aid to the blind equal to
one-half of the total of the sums expended during such quarter as aid to the blind under the State plan with
respect to each individual who is blind and is not an inmate of a public institution not counting so much of such
expenditure with respect to any individual for any month as exceeds $30, and
(2)
5 per centum of such amount, which shall be used for paying the costs of administering the State plan or for aid
to the blind, or both, and for no other purpose.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the
beginning of each quarter, estimate the amount to be paid to the State for such quarter under provisions of clause
(1) of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate of the
total sum to be expended in such quarter in accordance with the provisions of such clause, and stating the
amount appropriated or made available by the State and its political subdivisions for such expenditures in such
quarter, and if such amount is less than one-half of the total sum of such estimated expenditures, the source or
sources from which the difference is expected to be derived,
(B) records showing the number of blind individuals
in the State, and
(C) such other investigation as the Board may find necessary.
(2) The Board shall then certify
to the Secretary of the Treasury the amount so estimated by the Board, reduced or increased, as the case may be,
by any sum by which it finds that its estimate for any prior quarter was greater or less than the amount which
should have been paid to the State under clause (1) of subsection (a) for such quarter, except to the extent that
such sum has been applied to make the amount certified for any prior quarter greater or less than the amount
estimated by the Board for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the
Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting
Office, pay to the State, at the time or times fixed by the Board, the amount so certified, increased by 5 per
centum.
(1) that the plan has been so changed as to impose any residence or
citizenship requirement prohibited by section 1002 (b), or that in the administration of the plan any such
prohibited requirement is imposed, with the knowledge of such State agency, in a substantial number of cases; or
(2) that in the administration of the plan there is a failure to comply substantially with any provision required by
section 1002 (a) be included in the plan;
the Board shall notify such State agency that further payments will not be made to the State until the Board is
satisfied that such prohibited requirement is no longer so imposed, and that there is no longer any such failure to
comply. Until it is satisfied it shall make no further certification to the Secretary of the Treasury with respect to
such State.
(1) The term State (except when used in section 531) includes
Alaska, Hawaii, and the District of Columbia.
(2) The term United States when used in a geographical sense
means the States, Alaska, Hawaii, and the District of Columbia.
(3) The term person means an individual, a
trust or estate, a partnership, or a corporation.
(4) The term corporation includes associations, joint-stock
companies, and insurance companies.
(5) The term shareholder includes a member in an association, joint-
stock company, or insurance company.
(6) The term employee includes an officer of a corporation.
(b) The terms includes and including when used in a definition contained in this Act shall not be deemed to
exclude other things otherwise within the meaning of the term defined.
(c) Whenever under this Act or any Act of Congress, or under the law of any State, an employer is required or
permitted to deduct any amount from the remuneration of an employee and to pay the amount deducted to the
United States, a State, or any political subdivision thereof, then for the purposes of this Act the amount so
deducted shall be considered to have been paid to the employee at the time of such deduction.
(d) Nothing in this Act shall be construed as authorizing any Federal official, agent, or representative, in
carrying out any of the provisions of this Act, to take charge of any child over the objection of either of the
parents of such child, or of the person standing in loco parentis to such child.
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