[Code of Federal Regulations] [Title 26, Volume 15] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR31.3302(d)-1] [Page 156] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents Subpart D_Federal Unemployment Tax Act (Chapter 23, Internal Revenue Code of 1954) Sec. 31.3302(d)-1 Definitions and special rules relating to limit on total credits. (a) Rate of tax deemed to be 3 percent. In applying the provisions of section 3302(c) relating to the limitation on total credits, and to reductions of credits otherwise allowable, the tax imposed by section 3301 shall be computed at the rate of 3 percent in lieu of any other rate prescribed in section 3301 (see Sec. 31.3301-3). (b) Wages attributable to a particular State. For purposes of section 3302(c) (2) or (3), wages are attributable to a particular State if they are subject to the unemployment compensation law of the State. If wages are not subject to the unemployment compensation law of any State, the determination as to whether such wages, or any portion thereof, are attributable to the particular State with respect to which the reduction in total credits is imposed shall be made in accordance with rules prescribed by the Commissioner. (c) Employment Security Act of 1960. The Employment Security Act of 1960, referred to in section 3302(c)(2), means title V of the Social Security Amendments of 1960. [T.D. 6658, 28 FR 6635, June 27, 1963]