Federal Register / Vol. 69, No. 230 / Wednesday, December 1, 2004 / Rules and Regulations 69819

Subpart F—Traffic Control Devices on 

Federal-Aid and Other Streets and 

Highways—[Amended]

■ 2. Amend §655.601(a), to read as 

follows:

§ 655.601 Purpose.

* * * * *

(a) Manual on Uniform Traffic Control 

Devices for Streets and Highways 

(MUTCD), 2003 Edition, including 

Revision No.1, FHWA, dated November 

2004. This publication is incorporated 

by reference in accordance with 5 U.S.C. 

552 (a) and 1 CFR part 51 and is on file 

at the National Archives and Record 

Administration (NARA). For 

information on the availability of this 

material at NARA call (202) 741–6030, 

or go to http://www.archives.gov/

federal_register/

code_of_federal_regulations/

ibr_locations.html. It is available for 

inspection and copying at the Federal 

Highway Administration, 400 Seventh 

Street, SW., Room 3408, Washington, 

DC 20590, as provided in 49 CFR part 

7. The text is also available from the 

FHWA Office of Transportation 

Operations’ Web site at: http://

mutcd.fhwa.dot.gov.

* * * * *

[FR Doc. 04–26417 Filed 11–30–04; 8:45 am] 

BILLING CODE 4910–22–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 31

[TD 9162] 

RIN 1545–BB66

Federal Unemployment Tax Deposits—

De Minimis Threshold

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final 

regulations relating to the deposit of 

Federal Unemployment Tax Act (FUTA) 

taxes. The regulations change the 

accumulated amount of tax liability 

above which taxpayers must begin 

depositing Federal unemployment 

taxes. The regulations affect employers 

that have an accumulated FUTA tax 

liability of $500 or less.

DATES: Effective Date: These regulations 

are effective December 1, 2004. 

Applicability Date: For dates of 

applicability, see § 31.6302(c)–3(a)(2) 

and (3).

FOR FURTHER INFORMATION CONTACT:

Heather L. Dostaler, (202) 622–4940 (not 

a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to the Regulations on Employment 

Taxes and Collection of Income Tax at 

Source (26 CFR part 31) under section 

6302 relating to mode or time of 

collection. The current rules relating to 

the deposit of FUTA taxes generally 

require employers to deposit taxes on a 

quarterly basis. An exception provides 

that an employer is not required to make 

a deposit until accumulated FUTA tax 

liability exceeds $100. 

A notice of proposed rulemaking 

(REG–144908–02) providing an 

additional exception to the FUTA tax 

deposit requirements was published in 

the Federal Register (68 FR 42329) on 

July 17, 2003. Under the proposed 

exception, an employer would not be 

required to deposit FUTA taxes if the 

employer’s liability for other 

employment taxes (FICA taxes and 

withheld income taxes) was below the 

threshold at which deposits were 

required for those other taxes. 

Three written comments were 

received in response to the notice of 

proposed rulemaking, but there was no 

request for a public hearing and a public 

hearing was not held. All comments 

were considered and are available for 

public inspection upon request. After 

consideration of the written comments, 

the proposed regulations under section 

6302 are adopted as revised by this 

Treasury decision. The public 

comments and the revisions are 

discussed below. 

Summary of Comments 

Two commentators expressed concern 

that the creation of an additional 

exception linked to the deposit rules for 

other employment taxes will create 

complexity and that a single exception 

based on FUTA tax liability is sufficient. 

One commentator expressed concern 

regarding the low threshold amounts 

under both exceptions, and also 

expressed concern that the proposed 

exception could be misinterpreted by 

those accustomed to referring only to 

the amount of accumulated FUTA taxes.

One commentator suggested that the 

regulations should exempt household 

employers who file Schedule H, 

‘‘Household Employment Taxes,’’ with 

Form 1040. This comment is outside the 

scope of these regulations, which are 

limited to the deposit rules issued under 

section 6302. Household employment 

taxes reported on Schedule H are paid 

with the employer’s income taxes. 

Explanation of Provisions 

After considering the public 

comments, the IRS and Treasury 

Department agree that a single exception 

based on a higher FUTA tax liability 

threshold is preferable to the exception 

in the proposed regulations. 

Accordingly, the final regulations do not 

include an exception linked to the 

deposit rules for other employment 

taxes. Instead, they increase the FUTA 

tax liability threshold from $100 to 

$500. Thus, an employer will not be 

required to make a deposit of FUTA 

taxes until FUTA tax liability exceeds 

$500. This change is a simple and 

straightforward step to reduce the 

burden on small businesses. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

also has been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations, and, because these 

regulations do not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f) of the Internal Revenue 

Code, the notice of proposed rulemaking 

preceding these regulations was 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Drafting Information 

The principal author of these 

regulations is Heather L. Dostaler of the 

Office of Associate Chief Counsel, 

Procedure and Administration 

(Administrative Provisions and Judicial 

Practice Division).

List of Subjects in 26 CFR Part 31

Employment taxes, Income taxes, 

Penalties, Pensions, Railroad retirement, 

Reporting and recordkeeping 

requirements, Social Security, 

Unemployment compensation.

Adoption of Amendments to the 

Regulations

■ Accordingly, 26 CFR part 31 is 

amended as follows:

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT 

SOURCE

■ Paragraph 1. The authority citation for 

part 31 continues to read, in part, as 

follows:

Authority: 26 U.S.C. 7805 * * *

69820 Federal Register / Vol. 69, No. 230 / Wednesday, December 1, 2004 / Rules and Regulations 

■ Par. 2. In § 31.6302(c)–3, paragraphs 

(a)(2) and (a)(3) are revised to read as 

follows:

§ 31.6302(c)–3 Use of Government 

depositaries in connection with tax under 

the Federal Unemployment Tax Act. 

(a) * * *

(2) Special rule where accumulated 

amount does not exceed $500. The 

provisions of paragraph (a)(1) of this 

section shall not apply with respect to 

any period described therein if the 

amount of the tax imposed by section 

3301 for such period (as computed 

under section 6157) plus amounts not 

deposited for prior periods does not 

exceed $500 ($100 in the case of periods 

ending on or before December 31, 2004). 

Thus, an employer shall not be required 

to make a deposit for a period unless his 

tax for such period plus tax not 

deposited for prior periods exceeds 

$500. 

(3) Requirement for deposit in lieu of 

payment with return. If the amount of 

tax reportable on a return on Form 940 

exceeds by more than $500 ($100 in the 

case of calendar years before 2005) the 

sum of the amounts deposited by the 

employer pursuant to paragraph (a)(1) of 

this section for such calendar year, the 

employer shall, on or before the last day 

of the first calendar month following the 

calendar year for which the return is 

required to be filed, deposit the balance 

of the tax due with an authorized 

financial institution.

* * * * *

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: November 23, 2004. 

Gregory Jenner, 

Acting Assistant Secretary of the Treasury.

[FR Doc. 04–26511 Filed 11–30–04; 8:45 am] 

BILLING CODE 4830–01–P

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4011 and 4022

Disclosure to Participants; Benefits 

Payable in Terminated SingleEmployer Plans

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends Appendix D 

to the Pension Benefit Guaranty 

Corporation’s regulation on Benefits 

Payable in Terminated Single-Employer 

Plans by adding the maximum 

guaranteeable pension benefit that may 

be paid by the PBGC with respect to a 

plan participant in a single-employer 

pension plan that terminates in 2005. 

This rule also amends the PBGC’s 

regulation on Disclosure to Participants 

by adding information on 2005 

maximum guaranteed benefit amounts 

to Appendix B. The amendment is 

necessary because the maximum 

guarantee amount changes each year, 

based on changes in the contribution 

and benefit base under section 230 of 

the Social Security Act. The effect of the 

amendment is to advise plan 

participants and beneficiaries of the 

increased maximum guarantee amount 

for 2005.

EFFECTIVE DATE: January 1, 2005.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General 

Counsel, Office of the General Counsel, 

Pension Benefit Guaranty Corporation, 

1200 K Street, NW., Washington, DC 

20005–4026; 202–326–4024. (TTY/TDD 

users may call the Federal relay service 

toll-free at 1–800–877–8339 and ask to 

be connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: Section 

4022(b) of the Employee Retirement 

Income Security Act of 1974 provides 

for certain limitations on benefits 

guaranteed by the PBGC in terminating 

single-employer pension plans covered 

under title IV of ERISA. One of the 

limitations, set forth in section 

4022(b)(3)(B), is a dollar ceiling on the 

amount of the monthly benefit that may 

be paid to a plan participant (in the 

form of a life annuity beginning at age 

65) by the PBGC. The ceiling is equal to 

‘‘$750 multiplied by a fraction, the 

numerator of which is the contribution 

and benefit base (determined under 

section 230 of the Social Security Act) 

in effect at the time the plan terminates 

and the denominator of which is such 

contribution and benefit base in effect in 

calendar year 1974 [$13,200].’’ This 

formula is also set forth in § 4022.22(b) 

of the PBGC’s regulation on Benefits 

Payable in Terminated Single-Employer 

Plans (29 CFR part 4022). Appendix D 

to part 4022 lists, for each year 

beginning with 1974, the maximum 

guaranteeable benefit payable by the 

PBGC to participants in single-employer 

plans that have terminated in that year. 

Section 230(d) of the Social Security 

Act (42 U.S.C. 430(d)) provides special 

rules for determining the contribution 

and benefit base for purposes of ERISA 

section 4022(b)(3)(B). Each year the 

Social Security Administration 

determines, and notifies the PBGC of, 

the contribution and benefit base to be 

used by the PBGC under these 

provisions, and the PBGC publishes an 

amendment to Appendix D to Part 4022 

to add the guarantee limit for the 

coming year. 

The PBGC has been notified by the 

Social Security Administration that, 

under section 230 of the Social Security 

Act, $66,900 is the contribution and 

benefit base that is to be used to 

calculate the PBGC maximum 

guaranteeable benefit for 2005. 

Accordingly, the formula under section 

4022(b)(3)(B) of ERISA and 29 CFR 

§ 4022.22(b) is: $750 multiplied by 

$66,900/$13,200. Thus, the maximum 

monthly benefit guaranteeable by the 

PBGC in 2005 is $3,801.14 per month in 

the form of a life annuity beginning at 

age 65. This amendment updates 

Appendix D to Part 4022 to add this 

maximum guaranteeable amount for 

plans that terminate in 2005. (If a 

benefit is payable in a different form or 

begins at a different age, the maximum 

guaranteeable amount is the actuarial 

equivalent of $3,801.14 per month.) 

Section 4011 of ERISA requires plan 

administrators of certain underfunded 

plans to provide notice to plan 

participants and beneficiaries of the 

plan’s funding status and the limits of 

the PBGC’s guarantee. The PBGC’s 

regulation on Disclosure to Participants 

(29 CFR Part 4011) implements the 

statutory notice requirement. This rule 

amends Appendix B to the regulation on 

Disclosure to Participants by adding 

information on 2005 maximum 

guaranteed benefit amounts. Plan 

administrators may, subject to the 

requirements of that regulation, include 

this information in participant notices.

General notice of proposed 

rulemaking is unnecessary. The 

maximum guaranteeable benefit is 

determined according to the formula in 

section 4022(b)(3)(B) of ERISA, and 

these amendments make no change in 

its method of calculation but simply list 

2005 maximum guaranteeable benefit 

amounts for the information of the 

public. 

The PBGC has determined that this 

action is not a ‘‘significant regulatory 

action’’ under the criteria set forth in 

Executive Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

regulation, the Regulatory Flexibility 

Act of 1980 does not apply (5 U.S.C. 

601(2)).

List of Subjects 

29 CFR Part 4011

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements.