COLLECTION OF INCOME TAX AT SOURCE ON WAGES.

SEC. 805. COLLECTION OF INCOME TAX AT SOURCE ON WAGES. (a) Requirement of Withholding.—Section 3402(a) (relating to requirement of withholding) is amended by striking out paragraphs (1) and (2) and inserting in lieu thereof the following: “(1) In the case of wages paid after December 31, 1969, and before July 1, 1970: “Table 1—If the payroll period with respect to an employee is WEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $21.00 0. Over $21.00 but not over $33.00 21% of excess over $21.00. Over $33.00 but not over $52.00 $2.52 plus 27% of excess over $33.00. Over $52.00 but not over $88.00 $7.65 plus 18% of excess over $52.00. Over $88.00 but not over $177.00 $14.13 plus 21% of excess over $88.00. Over $177.00 but not over $212.00 $32.82 plus 26% of excess over $177.00. Over $212.00 $41.92 plus 31% of excess over $212.00. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $21.00 0. Over $21.00 but not over $48.00 21% of excess over $21.00. Over $48.00 but not over $88.00 $5.67 plus 16% of excess over $48.00. Over $88.00 but not over $177.00 $12.07 plus 18% of excess over $88.00. Over $177.00 but not over $346.00 $28.09 plus 21% of excess over $177.00. Over $346.00 but not over $423.00 $63.58 plus 26% of excess over $346.00. Over $423.00 $83.60 plus 31% of excess over $423.00. 83 Stat. 687 “Table 2—If the payroll period with respect to an employee is BIWEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42.00 0. Over $42.00 but not over $42.00 21% of excess over $42.00. Over $65.00 but not over $104.00 $4.83 plus 27% of excess over $65.00. Over $104.00 but not over $177.00 $15.36 plus 18% of excess over $104.00. Over $177.00 but not over $354.00 $28.50 plus 21% of excess over $177.00. Over $354.00 but not over $423.00 $65.67 plus 26% of excess over $354.00. Over $423.00 $83.61 plus 31% of excess over $423.00. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42.00 0. Over $42.00 but not over $96.00 21% of excess over $42.00. Over $96.00 but not over $177.00 $11.34 plus 16% of excess over $96.00. Over $177.00 but not over $354.00 $24.30 plus 18% of excess over $177.00. Over $354.00 but not over $692.00 $56.16 plus 21% of excess over $354.00. Over $602.00 but not over $846.00 $127.14 plus 26% of excess over $692.00. Over $846.00 $167.18 plus 31% of excess over $846.00. “Table 3—If the payroll period with respect to an employee is SEMI-MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $46 0. Over $46 but not over $71 21% of excess over $46. Over $71 but not over $113 $5.25 plus 27% of excess over $71. Over $113 but not over $192 $16.59 plus 18% of excess over $113. Over $192 but not over $383 $50.81 plus 21% of excess over $192. Over $383 but not over $458 $70.92 plus 26% of excess over $383. Over $458 $90.42 plus 31% of excess over $458. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $46 0. Over $46 but not over $104 21% of excess over $46. Over $104 but not over $192 $12.18 plus 16% of excess over $104. Over $192 but not over $383 $26.26 plus 18% of excess over $192. Over $388 but not over $750 $60.64 plus 21% of excess over $383. Over $750 but not over $917 $137.71 plus 26% of excess over $750. Over $917 $181.13 plus 31% of excess over $917. 83 Stat. 688 “Table 4—If the payroll period with respect to an employee is MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $92 0. Over $92 but not over $142 21% of excess over $92. Over $142 but not over $225 $10.50 plus 27% of excess over $142. Over $225 but not over $383 $32.91 plus 18% of excess over $225. Over $383 but not over $767 $61.35 plus 21% of excess over $383. Over $767 but not over $917 $141.99 plus 20% of excess over $767. Over $917 $180.99 plus 31% of excess over $917. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $92 0. Over $92 but not over $208 21% of excess over $92. Over $208 but not over $383 $24.36 plus 16% of excess over $208. Over $383 but not over $767 $52.36 plus 18% of excess over $383. Over $767 but not over $1,500 $121.48 plus 21% of excess over $767. Over $1,500 but not over $1,833 $275.41 plus 26% of excess over $1,500. Over $1,833 $361.99 plus 31% of excess over $1,833. “Table 5—If the payroll period with respect to an employee is QUARTERLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $275 0. Over $275 but not over $425 21% of excess over $275. Over $425 but not over $675 $31.50 plus 27% of excess over $425. Over $675 but not over $1,150 $99.00 plus 18% of excess over $675. Over $1,150 but not over $2,300 $184.510 plus 21% of excess over $1,150. Over $2,300 but not over $2,750 $426.00 plus 20% of excess over $2,300. Over $2,750 $543.00 plus 31% of excess over $2,750. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $275 0. Over $275 but not over $625 21% of excess over $275. Over $625 but not over $1,150 $73.50 plus 16% of excess over $625. Over $1,150 but not over $2,300 $157.50 plus 18% of excess over $1,150. Over $2,300 but not over $4,500 $364.50 plus 21% of excess over $2,300. Over $4,500 but not over $5,500 $826.50 plus 26% of excess over $4,500. Over $5,500 $1,086.50 plus 31% of excess over $5,500. 83 Stat. 689 “Table 6—If the payroll period with respect to an employee is SEMIANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $550 0. Over $550 but not over $850 21% of excess over $550. Over $850 but not over $1,350 $63 plus 27% of excess over $850. Over $1,350 but not over $2,300 $198 plus 18% of excess over $1,350. Over $2,300 but not over $4,600 $369 plus 21% of excess over $2,300. Over $4,600 but not over $5,500 $852 plus 26% of excess over $4,600. Over $5,500 $1,086 plus 31% of excess over $5,500. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $550 0. Over $550 but not over $1,250 21% of excess over $550. Over $1,250 but not over $2,300 $147 plus 16% of excess over $1,250. Over $2,300 but not over $4,600 $315 plus 18% of excess over $2,300. Over $4,600 but not over $9,000 $729 plus 21% of excess over $4,600. Over $9,000 but not over $11,000 $1,653 plus 26% of excess over $9,000. Over $11,000 $2,173 plus 31% of excess over $11,000. “Table 7—If the payroll period with respect to an employee is ANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,100 0. Over $1,100 but not over $1,700 21% of excess over $1,100. Over $1,700 but not over $2,700 $126 plus 27% of excess over $1,700. Over $2,700 but not over $4,600 $396 plus 18% of excess over $2,700. Over $4,600 but not over $9,200 $738 plus 21% of excess over $4,600. Over $9,200 but not over $11,000 $1,704 plus 26% of excess over $9,200. Over $11,000 $2,172 plus 31% of excess over $11,000. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,100 0. Over $1,100 but not over $2,500 21% of excess over $1,100. Over $2,500 but not over $4,600 $294 plus 16% of excess over $2,500. Over $4,600 but not over $9,200 $630 plus 18% of excess over $4,600. Over $9,200 but not over $18,000 $1,458 plus 21% of excess over $9,200. Over $18,000 but not over $22,000 $3,306 plus 26% of excess over $18,000. Over $22,000 $4,346 plus 31% of excess over $22,000. “Table 8—If the payroll period with respect to an employee is a DAILY payroll period or a miscellaneous payroll period “(a) Single Person—Including Head of Household: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $3.00 0. Over $3.00 but not over $4.70 21% of excess over $3.00. Over $4.70 but not over $7.40 $0.36 plus 27% of excess over $4.70. Over $7.40 but not over $12.60 $1.09 plus 18% of excess over $7.40. Over $12.60 but not over $25.20 $2.02 plus 21% of excess over $12.60. Over $25.20 but not over $30.10 $4.67 plus 26% of excess over $25.20. Over $30.10 $5.94 plus 31% of excess over $30.10. 83 Stat. 690 “(b) Married Person: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $3.00 0. Over $3.00 but not over $6.80 21% of excess over $3.00. Over $6.80 but not over $12.00 $0.80 plus 16% of excess over $6.80. Over $12.60 but not over $25.20 $1.73 plus 18% of excess over $12.60. Over $25.20 but not over $49.30 $3.99 plus 21% of excess over $25.20. Over $49.30 but not over $60.30 $9.06 plus 26% of excess over $49.30. Over $60.30 $11.92 plus 31% of excess over $60.30. “(2) In the case of wages paid after June 30, 1970, and before January 1, 1971: “Table 1—If the payroll period with respect to an employee is WEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $21 0. Over $21 but not over $33 21% of excess over $21. Over $33 but not over $52 $2.52 plus 25% of excess over $33. Over $52 but not over $88 $7.27 plus 17% of excess over $52. Over $88 but not over $177 $13.39 plus 21% of excess over $88. Over $177 but not over $212 $32.08 plus 25% of excess over $177. Over $212 $40.83 plus 30% of excess over $212. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $21 0. Over $21 but not over $48 21% of excess over $21. Over $48 but not over $88 $5.67 plus 15% of excess over $48. Over $88 but not over $177 $11.67 plus 17% of excess over $88. Over $177 but not over $346 $26.80 plus 20% of excess over $177. Over $346 but not over $423 $60.60 plus 25% of excess over $346. Over $423 $79.85 plus 30% of excess over $423. “Table 2—If the payroll period with respect to an employee is BIWEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42 0. Over $42 but not over $65 21% of excess over $42. Over $65 but not over $104 $4.83 plus 25% of excess over $65. Over $104 but not over $177 $14.58 plus 17% of excess over $104. Over $177 but not over $354 $26.99 plus 21% of excess over $177. Over $354 but not over $423 $64.16 plus 25% of excess over $354. Over $423 $81.41 plus 30% of excess over $423. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42 0. Over $42 but not over $65 21% of excess over $42. Over $65 but not over $104 $4.83 plus 25% of excess over $65. Over $104 but not over $177 $14.58 plus 17% of excess over $104. Over $177 but not over $354 $26.99 plus 21% of excess over $177. Over $354 but not over $423 $64.16 plus 25% of excess over $354. Over $423 $81.41 plus 30% of excess over $423. 83 Stat. 691 “Table 3—If the payroll period with respect to an employee is SEMI-MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $46 0. Over $46 but not over $71 21% of excess over $46. Over $71 but not over $113 $5.25 plus 25% of excess over $71. Over $113 but not over $192 $15.75 plus 17% of excess over $113. Over $192 but not over $383 $29.18 plus 21% of excess over $192. Over $383 but not over $458 $69.29 plus 25% of excess over $383. Over $438 $88.04 plus 30% of excess over $458. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $46 0. Over $46 but not over $104 21% of excess over $46. Over $104 but not over $192 $12.18 plus 15% of excess over $104. Over $192 but not over $383 $23.38 plus 17% of excess over $192. Over $383 but not over $750 $57.85 plus 20% of excess over $383. Over $750 but not over $917 $131.25 plus 25% of excess over $730. Over $917 $173.00 plus 30% of excess over $917. “Table 4—If the payroll period with respect to an employee is MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $92 0. Over $92 but not over $142 21% of excess over $92. Over $142 but not over $225 $10.50 plus 25% of excess over $142. Over $225 but not over $383 $31.25 plus 17% of excess over $225. Over $383 but not over $767 $58.11 plus 21% of excess over $383. Over $767 but not over $917 $138.75 plus 25% of excess over $767. Over $917 $176.25 plus 30% of excess over $917. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $92 0. Over $92 but not over $208 21% of excess over $92. Over $208 but not over $383 $24.36 plus 15% of excess over $208. Over $383 but not over $767 $50.61 plus 17% of excess over $383. Over $767 but not over $1,500 $115.89 plus 20% of excess over $767. Over $1,500 but not over $1,833 $262.49 plus 25% of excess over $1,500. Over $1,833 $345.74 plus 30% of excess over $1,833. “Table 5—If the payroll period with respect to an employee is QUARTERLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $275 0. Over $275 but not over $425 21% of excess over $275. Over $425 but not over $675 $31.50 plus 25% of excess over $425. Over $675 but not over $1,150 $94.00 plus 17% of excess over $675. Over $1,150 but not over $2,300 $174.75 plus 21% of excess over $1,150. Over $2,300 but not over $2,750 $416.25 plus 25% of excess over $2,300. Over $2,750 $528.75 plus 30% of excess over $2,750. 83 Stat. 692 “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $275 0. Over $275 but not over $625 21% of excess over $275. Over $625 but not over $1,150 $73.50 plus 15% of excess over $625. Over $1,150 but not over $2,300 $152.25 plus 17% of excess over $1,150. Over $2,300 but not over $4,500 $347.75 plus 20% of excess over $2,300. Over $4,500 but not over $5,500 $787.75 plus 25% of excess over $4,500. Over $5,500 $1,037.75 plus 30% of excess over $5,500. “Table 6—If the payroll period with respect to an employee is SEMIANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $550 0. Over $550 but not over $850 21% of excess over $550. Over $850 but not over $1,350 $63.00 plus 25% of excess over $850. Over $1,350 but not over $2,300 $188.00 plus 17% of excess over $1,350. Over $2,300 but not over $4,600 $349.50 plus 21% of excess over $2,300. Over $4,600 but not over $5,500 $832.50 plus 25% of excess over $4,600. Over $5,500 $1,057.50 plus 30% of excess over $5,500. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $550 0. Over $550 but not over $1,250 21% of excess over $550. Over $1,250 but not over $2,300 $147.00 plus 15% of excess over $1,250. Over $2,300 but not over $4,600 $304.50 plus 17% of excess over $2,300. Over $4,600 but not over $9,000 $695.50 plus 20% of excess over $4,600. Over $9,000 but not over $11,000 $1,575.50 plus 25% of excess over $9,000. Over $11,000 $2,075.50 plus 30% of excess over $11,000. “Table 7—If the payroll period with respect to an employee is ANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,100 0. Over $1,100 but not over $1,700 21% of excess over $1,100. Over $1,700 but not over $2,700 $126 plus 25% of excess over $1,700. Over $2,700 but not over $4,600 $376 plus 17% of excess over $2,700. Over $4,600 but not over $9,200 $699 plus 21% of excess over $4,600. Over $9,200 but not over $11,000 $1,665 plus 25% of excess over $9,200. Over $11,000 $2,115 plus 30% of excess over $11,000. 83 Stat. 693 “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,100 0. Over $1,100 but not over $2,500 21% of excess over $1,100. Over $2,500 but not over $4,600 $294 plus 15% of excess over $2,500. Over $4,600 but not over $9,200 $609 plus 17% of excess over $4,600. Over $9,200 but not over $18,000 $1,391 plus 20% of excess over $9,200. Over $18,000 but not over $22,000 $3,151 plus 25% of excess over $18,000. Over $22,000 $4,151 plus 30% of excess over $22,000. “Table 8—If the payroll period with respect to an employee is a DAILY payroll period or a miscellaneous payroll period “(a) Single Person—Including Head of Household: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $3.00 0 Over $3.00 but not over $4.70 21% of excess over $3.00. Over $4.70 but not over $7.40 $0.36 plus 25% of excess over $4.70. Over $7.40 but not over $12.60 $1.03 plus 17% of excess over $7.40. Over $12.60 but not over $25.20 $1.92 plus 21% of excess over $12.60. Over $25.20 but not over $30.10 $4.56 plus 25% of excess over $25.20. Over $30.10 $5.79 plus 30% of excess over $30.10. “(b) Married Person: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to he withheld shall be: Not over $3.00 0. Over $8.00 but not over $6.80 21% of excess over $3.00. Over $6.80 but not over $12.60 $0.80 plus 15% of excess over $6.80. Over $12.80 but not over $25.20 $1.67 plus 17% of excess over $12.60. Over $25.20 but not over $49.30 $3.81 plus 20% of excess over $25.20. Over $49.30 but not over $60.30 $8.63 plus 25% of excess over $49.30. Over $60.30 $11.38 plus 30% of excess over $60.30. “(3) In the case of wages paid after December 31, 1970, and before January 1, 1972: “Table 1—If the payroll period with respect to an employee is WEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $20 0. Over $20 but not over $31 14% of excess over $20. Over $31 but not over $50 $1.54 plus 17% of excess over $31. Over $50 but not over $100 $4.77 plus 20% of excess over $50. Over $100 but not over $135 $14.77 plus 18% of excess over $100. Over $135 but not over $212 $21.07 plus 21% of excess over $135. Over $212 $37.24 plus 24% of excess over $212. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $20 0. Over $20 but not over $42 14% of excess over $20. Over $42 but not over $77 $3.08 plus 17% of excess over $42. Over $77 but not over $163 $9.03 plus 16% of excess over $77. Over $163 but not over $269 $22.79 plus 19% of excess over $163. Over $269 but not over $385 $42.93 plus 21% of excess over $269. Over $385 $67.29 plus 25% of excess over $385. 83 Stat. 694 “Table 2—If the payroll period with respect to an employee is BIWEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $40 0. Over $40 but not over $62 14% of excess over $40. Over $62 but not over $100 $3.08 plus 17% of excess over $82. Over $100 but not over $200 $9.54 plus 20% of excess over $100. Over $200 but not over $269 $29.54 plus 18% of excess over $200. Over $269 but not over $423 $41.96 plus 21% of excess over $269. Over $423 $74.30 plus 24% of excess over $423. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $40 0. Over $40 but not over $85 14% of excess over $40. Over $85 but not over $154 $6.30 plus 17% of excess over $85. Over $154 but not over $327 $18.03 plus 16% of excess over $154. Over $327 but not over $538 $45.71 plus 19% of excess over $327. Over $538 but not over $769 $85.80 plus 21% of excess over $538. Over $769 $134.31 plus 25% of excess over $769. “Table 3—If the payroll period with respect to an employee is SEMI-MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $44 0. Over $44 but not over $67 14% of excess over $44. Over $67 but not over $108 $3.22 plus 17%p of excess over $67. Over $108 but not over $217 $10.19 plus 20% of excess over $108. Over $217 but not over $292 $31.99 plus 18% of excess over $217. Over $292 but not over $458 $45.49 plus 21% of excess over $292. Over $458 $80.35 plus 24% of excess over $458. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $44 0. Over $44 but not over $92 14% of excess over $44. Over $92 but not over $167 $6.72 plus 17% of excess over $92. Over $167 but not over $354 $19.47 plus 16% of excess over $167. Over $354 but not over $583 $49.39 plus 19% of excess over $354. Over $583 but not over $833 $92.90 plus 21% of excess over $583. Over $833 $145.40 plus 25% of excess over $833. “Table 4—If the payroll period with respect to an employee is MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $88 0. Over $88 but not over $133 14% of excess over $88. Over $133 but not over $217 $6.30 plus 17% of excess over $133. Over $217 but not over $433 $20.58 plus 20% of excess over $217. Over $433 but not over $583 $63.78 plus 18% of excess over $433. Over $583 but not over $917 $90.78 plus 21% of excess over $583. Over $917 $160.92 plus 24% of excess over $917. 83 Stat. 695 “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $88 0. Over $88 but not over $183 14% of excess over $88. Over $183 but not over $333 $13.30 plus 17% of excess over $183. over $333 but not over $708 $38.80 plus 16% of excess over $333. Over $708 but not over $1,167 $98.80 plus 19% of excess over $708. Over $1,167 but not over $1,667 $186.01 plus 21% of excess over $1,167. Over $1,667 $291.01 plus 25% of excess over $1,667. “Table 5—If the payroll period with respect to an employee is QUARTERLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $263 0. Over $263 but not over $400 14% of excess over $263. Over $400 but not over $850 $19.18 plus 17% of excess over $400. Over $650 but not over $1,300 $61.68 plus 20% of excess over $650. Over $1,300 but not over $1,750 $191.68 plus 18% of excess over $1,300. Over $1,750 but not over $2,750 $272.68 plus 21% of excess over $1,750. Over $2,750 $482.68 pins 24% of excess over $2,750. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $263 0. Over $263 but not over $550 14% of excess over $263. Over $550 but not over $1,000 $40.18 plus 17% of excess over $550. Over $1,000 but not over $2,125 $116.68 plus 16% of excess over $1,000. Over $2,125 but not over $3,500 $296.68 plus 19% of excess over $2,125. Over $3,500 but not over $5,000 $557.93 plus 21% of excess over $3,500. Over $5,000 $872.93 plus 25% of excess over $5,000. “Table 6—If the payroll period with respect to an employee is SEMIANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $525 0. Over $525 but not over $800 14% of excess over $525. Over $800 but not over $1,300 $38.50 plus 17% of excess over $800. Over $1,300 but not over $2,600 $123.50 plus 20% of excess over $1,300. Over $2,600 but not over $3,500 $383.50 plus 18% of excess over $2,600. Over $3,500 but not over $5,500 $545.50 plus 21% of excess over $3,500. Over $5,500 $965.50 plus 24% of excess over $5,500. 83 Stat. 696 “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $525 0. Over $525 but not over $1,100 14% of excess over $525. Over $1,100 but not over $2,000 $80.50 plus 17% of excess over $1,100. Over $2,000 but not over $4,250 $233.50 plus 18% of excess over $2,000. Over $4,250 but not over $7,000 $593.50 plus 19% of excess over $4,250. Over $7,000 but not over $10,000 $1,116.00 plus 21% of excess over $7,000. Over $10,000 $1,746.00 plus 25% of excess over $10,000. “Table 7—If the payroll period with respect to an employee is ANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,050 0. Over $1,050 but not over $1,600 14% of excess over $1,050. Over $1,600 but not over $2,600 $77 plus 17% of excess over $1,600. Over $2,600 but not over $5,200 $247 plus 20% of excess over $2,600. Over $5,200 but not over $7,000 $767 plus 18% of excess over $5,200. Over $7,000 but not over $11,000 $1,091 plus 21% of excess over $7,000. Over $11,000 $1,931 plus 24% of excess over $11,000. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,050 0. Over $1,050 but not over $2,200 14% of excess over $1,050. Over $2,200 but not over $4,000 $161 plus 17% of excess over $2,200. Over $4,000 but not over $8,500 $467 plus 18% of excess over $4,000. Over $8,500 but not over $14,000 $1,187 plus 19% of excess over $8,500. Over $14,000 but not over $20,000 $2,232 plus 21% of excess over $14,000. Over $20,000 $3,492 plus 25% of excess over $20,000. “Table 8—If the payroll period with respect to an employee is a DAILY payroll period or a miscellaneous payroll period “(a) Single Person—Including Head of Household: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $2.90 0. Over $2.90 but not over $4.40 14% of excess over $2.90. Over $4.40 but not over $7.10 $0.21 plus 17% of excess over $4.40. Over $7.10 but not over $14.20 $0.67 plus 20% of excess over $7.10. Over $14.20 but not over $19.20 $2.09 plus 18% of excess over $14.20. Over $19.20 but not over $30.10 $2.99 plus 21% of excess over $19.20. Over $30.10 $5.28 plus 24% of excess over $30.10. 83 Stat. 697 “(b) Married Person: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $2.90 0. Over $2.90 but not over $6.00 14% of excess over $2.90. Over $6.00 but not over $11.00 $0.43 plus 17% of excess over $6.00. Over $11.00 but not over $23.30 $1.28 plus 16% of excess over $11.00. Over $23.30 but not over $38.40 $3.25 plus 19% of excess over $23.30. Over $38.40 but not over $54.80 $6.12 plus 21% of excess over $38.40. Over $54.80 $9.57 plus 25% of excess over $54.80. “(4) In case of wages paid after December 31, 1971, and before January 1, 1973: “Table 1—If the payroll period with respect to an employee is WEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $19 0. Over $19 but not over $38 14% of excess over $19. Over $38 but not over $58 $2.66 plus 17% of excess over $38. Over $58 but not over $87 $6.06 plus 19% of excess over $58. Over $87 but not over $135 $11.57 plus 20% of excess over $87. Over $135 but not over $221 $21.17 plus 21% of excess over $135. Over $221 $39.23 plus 24% of excess over $221. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $19 0. Over $19 but not over $48 14% of excess over $19. Over $48 but not over $183 $4.06 plus 16% of excess over $48. Over $183 but not over $269 $23.66 plus 19% of excess over $183. Over $269 but not over $385 $42.00 plus 21% of excess over $269. Over $365 but not liver $442 $62.16 plus 24% of excess over $365. Over $442 $80.04 plus 28% of excess over $442. “Table 2—If the payroll period with respect to an employee is BIWEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $38 0. over $38 but not over $77 14% of excess over $38. Over $77 but not over $115 $5.46 plus 17% of excess over $77. Over $115 but not over $173 $11.92 plus 19% of excess over $115. Over $173 but not over $269 $22.94 plus 20% of excess over $173. Over $269 but not over $442 $42.14 plus 21% of excess over $269. Over $442 $78.47 plus 24% of excess over $442. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $38 0. Over $38 but not over $96 14% of excess over $38. Over $96 but not over $365 $8.12 plus 16% of excess over $96. Over $383 but not over $538 $51.10 plus 19% of excess over $365. Over $538 but not over $731 $84.03 plus 21% of excess over $538. Over $731 but not over $885 $124.56 plus 24% of excess over $731. Over $885 $161.52 plus 28% of excess over $885. 83 Stat. 698 “Table 3—If the payroll period with respect to an employee is SEMI-MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42 0. Over $42 but not over $83 14% of excess over $42. Over $83 but not over $125 $5.74 plus 17% of excess over $83. Over $125 but not over $188 $12.88 plus 19% of excess over $125. Over $188 but not over $292 $24.85 plus 20% of excess over $188. Over $292 but not over $479 $45.65 plus 21% of excess over $292. Over $479 $84.92 plus 24% of excess over $479. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42 0. Over $42 but not over $104 14% of excess over $42. Over $104 but not over $396 $8.68 plus 16% of excess over $104. Over $396 but not over $583 $55.40 plus 19% of excess over $396. Over $583 but not over $792 $90.93 plus 21% of excess over $583. Over $792 but not over $958 $134.82 plus 24% of excess over $792. Over $958 $174.66 plus 28% of excess over $958. “Table 4—If the payroll period with respect to an employee is MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $83 0. Over $83 but not over $167 14% of excess over $83. Over $167 but not over $250 $11.76 plus 17% of excess over $167. Over $250 but not over $375 $25.87 plus 19% of excess over $250. Over $375 but not over $583 $49.62 plus 20% of excess over $375. Over $583 but not over $958 $91.22 plus 21% of excess over $583. Over $958 $169.97 plus 24% of excess over $958. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $83 0. Over $83 but not over $208 14% of excess over $83. Over $208 but not over $792 $17.50 plus 16% of excess over $208. Over $792 but not over $1,167 $110.94 plus 19% of excess over $792. Over $1,167 but not over $1,583 $182.19 plus 21% of excess over $1,167. Over $1,583 but not over $1,917 $269.55 plus 24% of excess over $1,583. Over $1,917 $349.71 plus 28% of excess over $1,917. 83 Stat. 699 “Table 5—If the payroll period with respect to an employee is QUARTERLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $250 0. Over $250 but not over $500 14% of excess over $250. Over $500 but not over $750 $35.00 plus 17% of excess over $500. Over $750 but not over $1,125 $77.50 plus 19% of excess over $750. Over $1,125 but not over $1,750 $148.75 plus 20% of excess over $1,125. Over $1,750 but not over $2,875 $273.75 plus 21% of excess over $1,750. Over $2,875 $510.00 plus 24% of excess over $2,875. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $250 0. Over $250 but not over $625 14% of excess over $250. Over $625 but not over $2,375 $52.50 plus 16% of excess over $625. Over $2,375 but not over $3,500 $332.50 plus 19% of excess over $2,375. Over $3,500 but not over $4,750 $546.25 plus 21% of excess over $3,500. Over $4,750 but not over $5,750 $808.75 plus 24% of excess over $4,750. Over $5,750 $1,048.75 plus 28% of excess over $5,750. “Table 6—If the payroll period with respect to an employee is SEMIANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $500 0. Over $500 but not over $1,000 14% of excess over $500. Over $1,000 but not over $1,500 $70.00 plus 17% of excess over $1,000. Over $1,500 but not over $2,250 $155.00 plus 19% of excess over $1,500. Over $2,250 but not over $3,500 $297.50 plus 20% of excess over $2,250. Over $3,500 but not over $5,750 $547.50 plus 21% of excess over $3,500. Over $5,750 $1,020.00 plus 24% of excess over $5,750. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $500 0. Over $500 but not over $1,250 14% of excess over $500. Over $1,250 but not over $4,750 $105.00 plus 16% of excess over $1,250. Over $4,750 but not over $7,000 $665.00 plus 19% of excess over $4,750. Over $7,000 but not over $9,500 $1,092.50 plus 21% of excess over $7,000. Over $9,500 but not over $11,500 $1,617.50 plus 24% of excess over $9,500. Over $11,500 $2,097.50 plus 28% of excess over $11,500. 83 Stat. 700 “Table 7—If the payroll period with respect to an employee is ANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,000 0. Over $1,000 but not over $2,000 14% of excess over $1,000. Over $2,000 but not over $3,000 $140 plus 17% of excess over $2,000. Over $3,000 but not over $4,500 $310 plus 10% of excess over $3,000. Over $4,500 but not over $7,000 $595 plus 20% of excess over $4,500. Over $7,000 but not over $11,500 $1,095 plus 21% of excess over $7,000. Over $11,500 $2,040 plus 24% of excess over $11,500. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,000 0. Over $1,000 but not over $2,500 14% of excess over $1,000. Over $2,500 but not over $9,500 $210 plus 16% of excess over $2,500. Over $9,500 but not over $14,000 $1,330 plus 19% of excess over $9,500. Over $14,000 but not over $19,000 $2,185 plus 21% of excess over $14,000. Over $19,000 but not over $23,000 $3,235 plus 24% of excess over $19,000. Over $23,000 $4,195 plus 28% of excess over $23,000. “Table 8—If the payroll period with respect to an employee is a DAILY payroll period or a miscellaneous payroll period “(a) Single Person—Including Head of Household: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $2.70 0. Over $2.70 but not over $5.50 14% of excess over $2.70. Over $5.50 but not over $8.20 $0.39 plus 17% of excess over $5.50. Over $8.20 but not over $12.30 $0.85 plus 19% of excess over $8.20. Over $12.30 but not over $19.20 $1.63 plus 20% of excess over $12.30. Over $19.20 but not over $31.50 $3.01 plus 21% of excess over $19.20. Over $31.50 $5.59 plus 24% of excess over $31.50. “(b) Married Person: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $2.70 0. Over $2.70 but not over $6.80 14% of excess over $2.70. Over $6.80 but not over $26.00 $0.57 plus 16% of excess over $6.80. Over $26.00 but not over $38.40 $3.65 plus 19% of excess over $26.00. Over $38.40 but not over $52.10 $6.00 plus 21% of excess over $38.40. Over $52.10 but not over $63.00 $8.88 plus 24% of excess over $52.10. Over $63.00 $11.50 plus 28% of excess over $63.00. “(5) In the case of wages paid after December 31, 1972: 83 Stat. 701 “Table 1—If the payroll period with respect to an employee is WEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $19 0. Over $19 but not over $38 14% of excess over $19. Over $38 but not over $58 $2.66 plus 17% of excess over $38. Over $58 but not over $96 $6.06 plus 19% of excess over $58. Over $96 but not over $183 $13.28 plus 20% of excess over $96. Over $188 but not over $221 $30.68 plus 21% of excess over $183. Over $221 $38.66 plus 23% of excess over $221. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $19 0. Over $10 but not over $38 14% of excess over $19. Over $38 but not over $96 $2.66 plus 15% of excess over $38. Over $96 but not over $183 $11.36 plus 16% of excess over $96. Over $183 but not over $288 $25.28 plus 19% of excess over $183. Over $288 but not over $442 $45.23 plus 22% of excess over $288. Over $442 $79.11 plus 27% of excess over $442. “Table 2—If the payroll period with respect to an employee is BIWEEKLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $38 0. Over $38 but not over $77 14% of excess over $38. Over $77 but not over $115 $5.46 plus 17% of excess over $77. Over $115 but not over $192 $11.92 plus 19% of excess over $115. Over $192 but not over $365 $26.55 plus 20% of excess over $192. Over $365 but not over $442 $61.15 plus 21% of excess over $365. Over $442 $77.32 plus 23% of excess over $442. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $38 0. Over $38 but not over $77 14% of excess over $38. Over $77 but not over $192 $5.46 plus 15% of excess over $77. Over $192 but not over $365 $22.71 plus 18% of excess over $192. Over $365 but not over $577 $50.39 plus 19% of excess over $365. Over $577 but not over $885 $90.67 plus 22% of excess over $577. Over $885 $158.48 plus 27% of excess over $885. “Table 3—If the payroll period with respect to an employee is SEMI-MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42 0. Over $42 but not over $83 14% of excess over $42. Over $83 but not over $125 $5.74 plus 17% of excess over $83. Over $125 but not over $208 $12.88 plus 19% of excess over $125. Over $208 but not over $396 $28.65 plus 20% of excess over $208. Over $396 but not over $479 $66.25 plus 21% of excess over $396. Over $479 $88.68 plus 23% of excess over $479. 83 Stat. 702 “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $42 0. Over $42 but not over $83 14% of excess over $42. Over $83 but not over $208 $5.74 plus 15% of excess over $83. Over $208 but not over $396 $24.49 plus 16% of excess over $208. Over $396 but not over $625 $54.57 plus 19% of excess over $396. Over $625 but not over $958 $98.08 plus 22% of excess over $625. Over $958 $171.34 plus 27% of excess over $958. “Table 4—If the payroll period with respect to an employee is MONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $83 0. Over $83 but not over $167 14% of excess over $83. Over $167 but not over $250 $11.76 plus 17% of excess over $167. Over $250 but not over $417 $25.87 plus 19% of excess over $250. Over $417 but not over $792 $57.60 plus 20% of excess over $417. Over $792 but not over $958 $132.60 plus 21% of excess over $792. Over $958 $167.46 plus 23% of excess over $958. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $83 0. Over $83 but not over $167 14% of excess over $83. Over $167 but not over $417 $11.76 plus 15% of excess over $167. Over $417 but not over $792 $49.26 plus 16% of excess over $417. Over $792 but not over $1,250 $119.26 plus 19% of excess over $792. Over $1,250 but not over $1,917 $196.28 plus 22% of excess over $1,250. Over $1,917 $343.02 plus 27% of excess over $1,917. “Table 5—If the payroll period with respect to an employee is QUARTERLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $250 0. Over $250 but not over $500 14% of excess over $250. Over $500 but not over $750 $35.00 plus 17% of excess over $500. Over $750 but not over $1,250 $77.50 plus 19% of excess over $750. Over $1,250 but not over $2,375 $172.50 plus 20% of excess over $1,250. Over $2,375 but not over $2,875 $397.50 plus 21% of excess over $2,375. Over $2,875 $502.50 plus 23% of excess over $2,875. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $250 0. Over $250 but not over $500 14% of excess over $250. Over $500 but not over $1,250 $35.00 plus 15% of excess over $500. Over $1,250 but not over $2,375 $147.50 plus 16% of excess over $1,250. Over $2,375 but not over $3,750 $327.50 plus 19% of excess over $2,375. Over $3,750 but not over $5,750 $588.75 plus 22% of excess over $3,750. Over $5,750 $1,028.75 plus 27% of excess over $5,750. 83 Stat. 703 “Table 6—If the payroll period with respect to an employee is SEMIANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $500 0. Over $500 but not over $1,000 14% of excess over $500. Over $1,000 but not over $1,500 $70.00 plus 17% of excess over $1,000. Over $1,500 but not over $2,500 $155.00 plus 19% of excess over $1,500. Over $2,500 but not over $4,750 $345.00 plus 20% of excess over $2,500. Over $4,750 but not over $5,750 $795.00 plus 21% of excess over $4,750. Over $5,750 $1,005.00 plus 23% of excess over $5,750. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $500 0. Over $500 but not over $1,000 14% of excess over $500. Over $1,000 but not over $2,500 $70.00 plus 15% of excess over $1,000. Over $2,500 but not over $4,750 $295.00 plus 16% of excess over $2,500. Over $4,750 but not over $7,500 $655.00 plus 19% of excess over $4,750. Over $7,500 but not over $11,500 $1,177.50 plus 22% of excess over $7,500. Over $11,500 $2,057.50 plus 27% of excess over $11,500. “Table 7—If the payroll period with respect to an employee is ANNUAL “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,000 0. Over $1,000 but not over $2,000 14% of excess over $1,000. Over $2,000 but not over $3,000 $140 plus 17% of excess over $2,000. Over $3,000 but not over $5,000 $310 plus 19% of excess over $3,000. Over $5,000 but not over $9,500 $690 plus 20% of excess over $5,000. Over $9,500 but not over $11,500 $1,590 plus 21% of excess over $9,500. Over $11,500 $2,010 plus 23% of excess over $11,500. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $1,000 0. Over $1,000 but not over $2,000 14% of excess over $1,000. Over $2,000 but not over $5,000 $140 plus 15% of excess over $2,000. Over $5,000 but not over $9,500 $590 plus 16% of excess over $5,000. Over $9,500 but not over $15,000 $1,310 plus 19% of excess over $9,500. Over $15,000 but not over $23,000 $2,355 plus 22% of excess over $15,000. Over $23,000 $4,115 plus 27% of excess over $23,000. 83 Stat. 704 “Table 8—If the payroll period with respect to an employee is a DAILY payroll period or a miscellaneous payroll period “(a) Single Person—Including Head of Household: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $2.70 0. Over $2.70 but not over $5.50 14% of excess over $2.70. Over $5.50 but not over $8.20 $0.39 plus 17% of excess over $5.50. Over $8.20 but not over $13.70 $0.85 plus 19% of excess over $8.20. Over $13.70 but not over $26.00 $1.90 plus 20% of excess over $13.70. Over $26.00 but not over $31.50 $4.36 plus 21% of excess over $26.00. Over $31.50 $5.51 plus 23% of excess over $31.50. “(b) Married Person: “If the amount of wages divided by the number of days in the payroll period is: The amount of income tax to be withheld shall be: Not over $2.70 0. Over $2.70 but not over $5.50 14% of excess over $2.70. Over $5.50 but not over $13.70 $0.39 plus 15% of excess over $5.50. Over $13.70 but not over $26.00 $1.62 plus 16% of excess over $13.70. Over $26.00 but not over $41.10 $3.59 plus 19% of excess over $26.00. Over $41.10 but not over $63.00 $6.46 plus 22% of excess over $41.10. Over $63.00 $11.28 plus 27% of excess over $63.00.” (b) Percentage Method of Withholding.— (1) Wages paid before july 1, 1970.—Effective with respect to wages paid after December 31, 1969, and before July 1, 1970, the table contained in section 3402(b)(1) is amended to read as follows: “Percentage Method Withholding Table “Payroll period Amount of one withholding exemption: Weekly $11.50 Biweekly 23.00 Semimonthly 25.00 Monthly 50.00 Quarterly 150.00 Semiannual 300.00 Annual 600.00 Daily or miscellaneous (per day of such period) 1.60.” (2) Wages paid in 1970 and 1971.—Effective with respect to wages paid after June 30, 1970, and before January 1, 1972, the table contained in section 3402(b)(1) is amended to read as follows: “Percentage Method Withholding Table “Payroll period Amount of one withholding exemption: Weekly $12.50 Biweekly 25.00 Semimonthly 27.10 Monthly 54.20 Quarterly 162.50 Semiannual 325.00 Annual 650.00 Daily or miscellaneous (per day of such period) 1.80.” (3) Wages paid during 1972.—Effective with respect to wages paid during 1972, the table contained in section 3402(b)(1) is amended to read as follows: 83 Stat. 705 “Percentage Method Withholding Table “Payroll period Amount of one withholding exemption: Weekly $13.50 Biweekly 26.90 Semimonthly 29.20 Monthly 58.30 Quarterly 175.00 Semiannual 350.00 Annual 700.00 Daily or miscellaneous (per day of such period) 1.90.” (4) Wages paid after 1972.—Effective with respect to wages paid after 1972, the table contained in section 3402(b)(1) is amended to read as follows: “Percentage Method Withholding Table “Payroll period Amount of one withholding exemption: Weekly $14.40 Biweekly 28.80 Semimonthly 31.30 Monthly 62.50 Quarterly 187.50 Semiannual 375.00 Annual 750.00 Daily or miscellaneous (per day of such period) 2.10.” (c) Wage Bracket Withholding.—Section 3402(c) (relating to wage bracket withholding) is amended— (1) by striking out paragraph (1) and inserting in lieu thereof the following: “(1) At the election of the employer with respect to any employee, the employer shall deduct and withhold upon the wages paid to such employee a tax (in lieu of the tax required to be deducted and withheld under subsection (a)) determined in accordance with tables prescribed by the Secretary or his delegate in accordance with paragraph (6).”, and (2) by striking out paragraph (6) and inserting in lieu thereof the following: “(6) In the case of wages paid after December 31, 1969, the amount deducted and withheld under paragraph (1) shall be determined in accordance with tables prescribed by the Secretary or his delegate. In the tables so prescribed, the amounts set forth as amounts of wages and amounts of income tax to be deducted and withheld shall be computed on the basis of table 7 contained in paragraph (1), (2), (3), (4), or (5) (whichever is applicable) of subsection (a).” (d) Alternative Methods of Computing Amount To Be Withheld.—Section 3402(h) (relating to withholding on basis of average wages) is amended to read as follows: “(h) Alternative Methods of Computing Amount To Be Withheld.—The Secretary or his delegate may, under regulations prescribed by him, authorize— “(1) Withholding on basis of average wages.—An employer— “(A) to estimate the wages which will be paid to any employee in any quarter of the calendar year, “(B) to determine the amount to be deducted and withheld upon each payment of wages to such employee during such quarter as if the appropriate average of the wages so estimated constituted the actual wages paid, and 83 Stat. 706 “(C) to deduct and withhold upon any payment of wages to such employee during such quarter (and, in the case of tips referred to in subsection (k), within 30 days thereafter) such amount as may be necessary to adjust the amount actually deducted and withheld upon the wages of such employee during such quarter to the amount required to be deducted and withheld during such quarter without regard to this subsection. “(2) Withholding on basis of annualized wages.—An employer to determine the amount of tax to be deducted and withheld upon a payment of wages to an employee for a payroll period by— “(A) multiplying the amount of an employee’s wages for a payroll period by the number of such payroll periods in the calendar year, “(B) determining the amount of tax which would be required to be deducted and withheld upon the amount determined under subparagraph (A) if such amount constituted the actual wages for the calendar year and the payroll period of the employee were an annual payroll period, and “(C) dividing the amount of tax determined under subparagraph (B) by the number of payroll periods (described in subparagraph (A)) in the calendar year. “(3) Withholding on basis of cumulative wages.—An employer, in the case of any employee who requests to have the amount of tax to be withheld from his wages computed on the basis of his cumulative wages, to— “(A) add the amount of the wages to be paid to the employee for the payroll period to the total amount of wages paid by the employer to the employee during the calendar year, “(B) divide the aggregate amount of wages computed under subparagraph (A) by the number of payroll periods to which such aggregate amount of wages relates, “(C) compute the total amount of tax that would have been required to be deducted and withheld under subsection (a) if the average amount of wages (as computed under subparagraph (B)) had been paid to the employee for the number of payroll periods to which the aggregate amount of wages (computed under subparagraph (A)) relates, “(D) determine the excess, if any, of the amount of tax computed under subparagraph (C) over the total amount of tax deducted and withheld by the employer from wages paid to the employee during the calendar year, and “(E) deduct and withhold upon the payment of wages (referred to in subparagraph (A)) to the employee an amount equal to the excess (if any) computed under subparagraph (D). “(4) Other methods.—An employer to determine the amount of tax to be deducted and withheld upon the wages paid to an employee by any other method which will require the employer to deduct and withhold upon such wages substantially the same amount as would be required to be deducted and withheld by applying subsection (a) or (c), either with respect to a payroll period or with respect to the entire taxable year.” (e) Withholding Allowances Based on Itemized Deductions.— Section 3402(m) (relating to withholding allowances based on itemized deductions in the case of income tax collected at source) is amended: 83 Stat. 707 (1) by redesignating paragraph (2)(C) as paragraph (2)(D), and (2) by amending that portion of such section as precedes paragraph (2)(D) (as redesignated) to read as follows: “(m) Withholding Allowances Based on Itemized Deductions.— “(1) General rule.—An employee shall be entitled to withholding allowances under this subsection with respect to a payment of wages in a number equal to the number determined by dividing by $750 the excess of— “(A) his estimated itemized deductions, over “(B) an amount equal to 15 percent of his estimated wages. For purposes of this subsection, a fractional number shall not be taken into account unless it amounts to one-half or more, in which case it shall be increased to 1. “(2) Definitions.—For purposes of this subsection— “(A) Estimated itemized deductions.—The term ‘estimated itemized deductions’ means the aggregate amount which he reasonably expects will be allowable as deductions under chapter 1 (other than the deductions referred to in sections 141 and 151 and other than the deductions required to be taken into account in determining adjusted gross income under section 62) for the estimation year. In no case shall such aggregate amount be greater than the sum of (i) the amount of such deductions (or the amount of the standard deduction) reflected in his return of tax under subtitle A for the taxable year preceding the estimation year, and (ii) the amount of his determinable additional deductions for the estimation year. “(B) Estimated wages.—The term ‘estimated wages’ means the aggregate amount which he reasonably expects will constitute wages for the estimation year. “(C) Deteminable additional deductions.—The term ‘determinable additional deductions’ means those estimated itemized deductions which (i) are in excess of the deductions referred to in subparagraph (A) (or the standard deduction) reflected on his return of tax under subtitle A for the taxable year preceding the estimation year, and (ii) are demonstrably attributable to an identifiable event during the estimation year or the preceding taxable year which can reasonably be expected to cause an increase in the amount of such deductions on the return of tax under subtitle A for the estimation year.” (f) Employees Incurring No Income Tax Liability.— (1) In general.—Section 3402 (relating to income tax collected at source) is amended by adding at the end thereof the following new subsection: “(n) Employees Incurring No Income Tax Liability.—Notwithstanding any other provision of this section, an employer shall not be required to deduct and withhold any tax under this chapter upon a payment of wages to an employee if there is in effect with respect to such payment a withholding exemption certificate (in such form and containing such other information as the Secretary or his delegate may prescribe) furnished to the employer by the employee certifying that the employee— “(1) incurred no liability for income tax imposed under subtitle A for his preceding taxable year, and “(2) anticipates that he will incur no liability for income tax imposed under subtitle A for his current taxable year. 83 Stat. 708 The Secretary or his delegate shall by regulations provide for the coordination of the provisions of this subsection with the provisions of subsection (f).” (2) Conforming amendment.—The first sentence of section 6051 (relating to receipts for employees) is amended by striking out “under section 8402 if” and inserting “under section 3402 (determined without regard to subsection (n)) if”. (g) Extension of Withholding to Payments Other Than Wages.—Section 3402 (relating to income tax collected at source) is amended by adding after subsection (n) (added by subsection (f)) the following new subsections: “(o) Extension of Withholding to Certain Payments Other Than Wages.— “(1) General rule.—For purposes of this chapter (and so much of subtitle F as relates to this chapter)— “(A) any supplemental unemployment compensation benefit paid to an individual, and “(B) any payment of an annuity to an individual, if at the time the payment is made a request that such annuity be subject to withholding under this chapter is in effect, shall be treated as if it were a payment of wages by an employer to an employee for a payroll period. “(2) Definitions.— “(A) Supplemental unemployment compensation benefits.—For purposes of paragraph (1), the term ‘supplemental unemployment compensation benefits’ means amounts which are paid to an employee, pursuant to a plan to which the employer is a party, because of an employee s involuntary separation from employment (whether or not such separation is temporary), resulting directly from a reduction in force, the discontinuance of a plant or operation, or other similar conditions, but only to the extent such benefits are includible in the employee’s gross income. “(B) Annuity.—For purposes of this subsection, the term ‘annuity’ means any amount paid to an individual as a pension or annuity, but only to the extent that the amount is includible in the gross income of such individual. “(3) Request for withholding.—A request that an annuity be subject to withholding under this chapter shall be made by the payee in writing to the person making the annuity payments, shall be accompanied by a withholding exemption certificate, executed in accordance with the provisions of subsection (f)(2), and shall take effect as provided in subsection (f)(3). Such a request may, notwithstanding the provisions of subsection (f)(4), be terminated by furnishing to the person making the payments a written statement of termination which shall be treated as a withholding exemption certificate for purposes of subsection (f)(3)(B). “(p) Voluntary Withholding Agreements.—The Secretary or his delegate is authorized by regulations to provide for withholding— “(1) from remuneration for services performed by an employee for his employer which (without regard to this subsection) does not constitute wages, and “(2) from any other type of payment with respect to which the Secretary or his delegate finds that withholding would be appropriate under the provisions of this chapter, if the employer and the employee, or in the case of any other type of payment the person making and the person receiving the payment, agree to such withholding. Such agreement shall be made in such form and manner as the Secretary or his delegate may by regulations pro-83 Stat. 709vide. For purposes of this chapter (and so much of subtitle F as relates to this chapter) remuneration or other payments with respect to which such agreement is made shall be treated as if they were wages paid by an employer to an employee to the extent that such renumeration is paid or other payments are made during the period for which the agreement is in effect.” (h) Effective Dates.— (1) The amendments made by subsections (a), (b), (c), (d), and (e) shall apply with respect to remuneration paid after December 31, 1969. (2) The amendment made by subsection (f) applies to wages paid after April 30, 1970. (3) Subsection (o) of section 3402 of the Internal Revenue Code of 1954, added by subsection (g) of this subsection, shall apply to payments made after December 31, 1970. Subsection (p) of such section 3402, added by subsection (g) of this section, shall apply to payments made after June 30, 1970.