### Question
How is the "applicable percentage" defined?


### Answer
The term **applicable percentage** is defined in *26 U.S.C. § 3221* as follows -

> the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3111 for the calendar year

#### Citation:
  - *26 U.S.C. § 3221*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 22-RAILROAD RETIREMENT TAX ACT > Subchapter C-Tax on Employers**

