### Question
What does reduced rate” means a rate of contributions lower than the standard rate applicable under the State law, and the term “standard rate mean?


### Answer
**Reduced rate” means a rate of contributions lower than the standard rate applicable under the State law, and the term “standard rate** has the following meaning in *26 U.S.C. § 3303*:

> the rate on the basis of which variations therefrom are computed

#### Citation:
  - *26 U.S.C. § 3303*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 23-FEDERAL UNEMPLOYMENT TAX ACT**

