ADJUSTMENT OF WITHHOLDING.

SEC. 208. ADJUSTMENT OF WITHHOLDING. (a) Requirement of Withholding—Section 3402(a) (relating to requirement of withholding) is amended by striking out paragraphs (1) through (5) and inserting in lieu thereof the following: “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 11 0. Over $11 hut not over $35 14% of excess over $11, Over $35 but not over $73 $3.36 plus 18% of excess over $35. Over $73 but not over $202 $10.20 plus 21% of excess over $73. Over $202 but not over $231 $37,29 plus 23% of excess over $202. Over $231 but not over $201) $43.96 plus 27% of excess over $231. Over $269 but not over $333. $54.22 plus 31% of excess over $269. Over $333 $74.06 plus 35% of excess over $333. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $11 0. Over $11 but not over $39 14% of excess over $11. Over $39 but not over $167 $3.92 plus 16% of excess over $39. Over $167 but not over $207 $24,40 plus 20% of excess over $167. Over $207 but not over $324 $32.40 plus 24% of excess over $207. Over $324 but not over $409 $60.48 plus 28% of excess over $321. Over $409 but not over $486 $84.28 plus 32% of excess over $409. Over $486 $108.92 plus 36% of excess over $480. 85 Stat. 513 “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 $21 0. Over $21 but not over $69 14% of excess over $21. Over $69 but not over $146 $6.72 plus 18% of excess over $69. Over $146 but not over $404 $20.58 plus 21% of excess over $146. Over $404 but not over $462 $74.76 plus 23% of excess over $404. Over $462 but not over $538 $88.10 plus 27% of excess over $462. Over $538 but not over $665 $108.62 plus 31% of excess over $538. Over $665 $147.99 plus 35% of excess over $665. “(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 lint not over $79 14% of excess over $21. Over $7!) but not over $335 $8.12 plus 16% of excess over $79. Over $335 but not over $413 $49.08 plus 20% of excess over $335. Over $413 but not over $648 $64.68 plus 24% of excess over $413. Over $648 but not over $817 $121.08 plus 28% of excess over $648. Over $817 but not over $971 $168.40 plus 32% of excess over $817. Over $971 $217.68 plus 36% of excess over $971. “Table 3.—If the payroll period with respect to an employee is SEMIMONTHLY “(a) Single Person—Including Head of Household: “If the amount of wages is: The amount of income tax to he withheld shall be: Not over $23 0. Over $23 but not over $75 14% of excess over $23. Over $75 but not over $158 $7.28 plus 18% of excess over $75. Over $158 but not over $438 $22.22 plus 21% of excess over $158. Over $438 but not over $560 $81.02 plus 23% of excess over $438. Over $500 but not over $583 $95.28 plus 27% of excess over $500. Over $583 but not over $721 $117.69 plus 31% of excess over $583. Over $721 $160.47 plus 35% of excess over $721. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $23 0. Over $23 but not over $8 14% of excess over $23. Over $85 but not over $363 $8.68 plus 16% of excess over $85. Over $363 but not over $448 $53.16 plus 20% of excess over $363. Over $448 but not over $702 $70.16 plus 24% of excess over $448. Over $702 but not over $885 $131.12 plus 28% of excess over $702. Over $885 but not over $1,052 $182.36 plus 32% of excess over $885. Over $1,052 $235.80 plus 36% of excess over $1,052. “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 $46 0. Over $46 but not over $150 14% of excess over $46. Over $150 but not over $317 $14.56 plus 18% of excess over $150. Over $317 but not over $875 $44.62 plus 21% of excess over $317. Over $875 but not over $1,000 $161.80 plus 23% of excess over $875. Over $1,000 but not over $1,167 $190.55 plus 27% of excess over $1,000. Over $1,167 but not over $1,442 $235.64 plus 31% of excess over $1,167. Over $1,442 $320.89 plus 35% of excess over $1,442. 85 Stat. 514 “Table 4.—If the payroll period with respect to an employee is MONTHLY—Continued “(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 $171 14% of excess over $46. Over $171 but not over $725 $17.50 plus 16% of excess over $171. Over $725 but not over $896 $106.14 plus 20% of excess over $725. Over $896 but not over $1,404 $140.34 plus 24% of excess over $806. Over $1,404 but not over $1,771. $262.26 plus 28% of excess over $1,404. Over $1,771 but not over $2,104. $365.02 plus 32% of excess over $1,771. Over $2,104 $471.58 plus 36% of excess over $2,104. “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 $138 0. Over $138 but not over $450 14% of excess over $138. Over $450 but not over $950 $43.68 plus 18% of excess over $450. Over $950 but not over $2,625 $133.68 plus 21% of excess over $950. Over $2,625 but not over $3,000 $485.43 plus 23% of excess over $2,625. Over $3,000 but not over $3,500 $571.68 plus 27% of excess over $3,000. Over $3,500 but not over $4,325 $706.68 plus 31% of excess over $3,500. Over $4,325 $962.43 plus 35% of excess over $4,325. “(b) Married Person: “If the amount of wages is: The amount of income tax to be withheld shall be: Not over $138 0. Over $138 but not over $513 14% of excess over $138. Over $513 but not over $2,175 $52.50 plus 16% of excess over $513. Over $2,175 but not over $2,688 $318.42 plus 20% of excess over $2,175. Over $2,688 but not over $4.213 $421.02 plus 24% of excess over $2,688. Over $4,213 but not over $5,313 $787.02 plus 28% of excess over $4,213. Over $5,313 but not over $6,313 $1,095.02 plus 32% of excess over $5,313. Over $6,313 $1,415.02 plus 36% of excess over $6,313. “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 $275 0. Over $275 but not over $900 14% of excess over $275. Over 900 but not over $1,900 $87.50 plus 18% of excess over $900. Over $1,900 but not over $5,250. $267.50 plus 21% of excess over $1,900. Over $5,250 but not over $6,000 $971.00 plus 23% of excess over $5,250. Over $6,000 but not over $7,000 $1,143.50 plus 27% of excess over $6,000. Over $7,000 but not over $8,650 $1,413.50 plus 31% of excess over $7,000. Over $8,650 $1,925.00 plus 35% of excess over $8,650. “(b) Mamed 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 $1,025 14% of excess over $275. Over $1,025 but not over $4,350 $105.00 plus 16% of excess over $1,025. Over $4,350 but not over $5,375 $637.00 plus 20% of excess over $4,350. Over $5,375 but not over $8,425 $842.00 plus 24% of excess over $5,375. Over $8,425 but not over $10,625 $ 1,574.00 plus 28% Of excess over $8,425. Over $10,625 but not over $12,625 $2,190.00 plus 32% of excess over $10,625. Over $12,625 $2,830.00 plus 36% of excess over $12,625. 85 Stat. 515 “Table 7.—If the payroll period with respect to an employee is ANNUAL “(a) Single Person—Including I lead 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 $1,800 14% of excess over $550. Over $1,800 but not over $3,800 $175.00 plus 18% of excess over $1,800. Over $3,800 but not over $10,500 $535.00 plus 21% of excess over $3,800. Over $10,500 but not over $12,000 $1,942.00 plus 23% of excess over $10,500. Over $12,000 but not over $14,000 $2,287.00 plus 27% of excess over $12,000. Over $14,000 but not over $17,300 $2,827.00 plus 31% of excess over $14,000. Over $17,300 $3,850.00 plus 35% of excess over $17,300. “(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 $2,050 14% of excess over $550. Over $2,050 but not over $8,700 $210.00 plus 16% of excess over $2,050. Over $8,700 but not over $10,750 $1,274.00 plus 20% of excess over Over $10,750 but not over $16,850 $8,700. Over $16,850 but not over $21,250 $1,684,00 plus 24% of excess over $10,750. Over $21,250 but not over $25,250 $3,148.00 plus 28% of excess over $16,850. Over $25,250 $4,380.00 plus 32% of excess over $21,250. $5,060.00 plus 36% of excess over $25,250. “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 $1.50 0. Over $1.50 but not over $4.9 14% of excess over $1.50. Over $4.90 but not over $10.40 $0.48 plus 18% of excess over $4.90. Over $10.40 but not over $28.80 $1.47 plus 21% of excess over $10.40. Over $28.80 but not over $32.90 $5.33 plus 23% of excess over $28.80, Over $32.90 but not over $38.40 $6.27 plus 27% of excess over $32.90. Over $38.40 but not over $47.40 $7.76 plus 31% of excess over $38.40. Over $47.40 $10.55 plus 35% of excess over $47.40. “(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 $1.50 0. Over $1.50 but not over $5.60 14% of excess over $1,50. Over $5.60 but not over $23.80. $0.57 plus 16% of excess over $5.60. Over $23,80 but not over $29.50 $3.48 plus 20% of excess over $23.80, Over $29.50 but not over $46.20 $4.62 plus 24% of excess over $29.50. Over $46.20 but not over $58.20 $8.63 plus 28% of excess over $46.20. Over $58.20 but not over $69.20 $11.99 plus 32% of excess over $58.20. Over $69.20 $15.51 plus 36% of excess over $69.20.” 85 Stat. 516 (b) Percentage Method of Withholding— (1) Section 3402(b)(1) (relating to percentage method of withholding) 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 02.50 Quarterly 187.50 Semiannual 375.00 Annual 750.00 Daily or miscellaneous (per day of such period) 2.10.” (2) Paragraphs (3) and (4) of section 805(b) of the Tax Reform Act of 1969 are hereby repealed. (c) Withholding Allowance for Standard Deduction— (1) Section 3402(f) (1) (relating to withholding exemptions) is amended— (A) by striking out “and” at the end of subparagraph (E), (B) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof and”, and (C) by adding at the end thereof the following: “(G) a standard deduction allowance which shall lie an amount equal to one exemption unless (i) he is married (as determined under section 143) and his spouse is an employee receiving wages subject to withholding or (ii) he has with-holding exemption certificates in effect with respect to more than one employer. For purposes of this title, any standard deduction allowance under subparagraph (G) shall be treated as if it were denominated a withholding exemption.” (d) Withholding Exemptions Where Employee Has More Than One Employer—Section 3402(f) (relating to withholding exemptions) is amended by adding at the end thereof the following new paragraph: “(7) Exemption where certificate with another employer is in effect—If a withholding exemption certificate is in effect with respect to one employer, an employee shall not be entitled under a certificate in effect with any other employer to any with-holding exemption which he has claimed under such first certificate.” (e) Determination of Amount of Withholding Allowance—Section 3402(m) (1) (B) (relating to withholding allowances based on itemized deductions) is amended to read as follows: “(B) an amount equal to the lesser of (i) $2,000 or (ii) 15 percent of his estimated wages.” (f) Withholding Allowance Based on Preceding Year in Certain Cases—Section 3402 (m) is amended— (1) by striking out in the second sentence of paragraph (2) (A) “for the taxable year preceding the estimation year” and inserting in lieu thereof “for the taxable year preceding the estimation year or (if such a return has not been filed for such preceding taxable year at the time the withholding exemption certificate is furnished the employer) the second taxable year preceding the estimation year”, (2) by amending the first sentence of paragraph (2) (D) to read as follows: “In the case of an employee who files his return on the basis of a calendar year, the term ‘estimation year’ means the calendar year in which the wages are paid.”, and 85 Stat. 517 (3) by striking out subparagraphs (B) and (C) of paragraph (3), and redesignating subparagraphs (D) and (E) as subpara graphs (B) and (C), respectively. (g) Conforming Amendment—Section 3402(c)(6) (relating to wage bracket withholding) is amended by striking out “paragraph (1), (2), (3), (4), or (5), (whichever is applicable) of”. (h) Fifteen-Day Extension of Existing Withholding Provisions— (1) Paragraph (3) of section 3402(a) (relating to requirement of withholding) is amended by striking out “January 1, 1972” and inserting in lieu thereof “January 16, 1972”. (2) Paragraph (2) of section 805(b) of the Tax Reform Act of 1969 (relating to percentage method of withholding) is amended by striking out “January 1, 1972” and inserting in lieu thereof “January 16, 1972”. (i) Effective Date— (1) The amendments made by this section (other than subsection (h)) shall apply with respect to wages paid after January 15, 1972. (2) The amendments made by subsection (h) shall apply with respect to wages paid after December 31, 1971, and before January 16, 1972.