WITHHOLDING TAX.

SEC. 235. WITHHOLDING TAX. (a) Requirement of Withholding.— Subsection (a) of section 3402 (relating to income tax collected at source) is amended to read as follows: “(a) Requirement of Withholding.— Except as otherwise provided in this section, every employer making payment of wages snail deduct and withhold upon such wages a tax determined in accordance with tables prescribed by the Secretary or his delegate. The tables so prescribed shall be the same as the tables contained in this subsection as in effect on January 1, 1975, except that the amounts set forth as amounts of income tax to be withheld with respect to wages paid after April 30, 1975, and before January 1, 1976, shall reflect the full calendar year effect for 1975 of the amendments made by sections 201, 202, 203, and 204 of the Tax Reduction Act of 1975. For purposes of applying such tables, the term ‘the amount of wages’ means the amount by which the wages exceed the number of withholding exemptions claimed, multiplied by the amount, of one such exemption as shown in the table in subsection (b)(1) (b) Conforming Amendment.— Section 3402(c)(6) (relating to wage bracket withholding) is amended by striking out “table 7 contained in subsection (a)” and inserting in lieu thereof “the table for an annual payroll period prescribed pursuant to subsection (a)”.