58 STAT.] 78TH CONG. , 2o SESS.-CH. 210-MAY 29, 1944 Part II-Withholding of Tax at Source on Wages SEC. 21 . EFFECTIVE DATE. The amendments made by this Part shall apply only with respect to wages paid on or after January 1,1945. SEC. 22 . WITHHOLDING OF TAX AT SOURCE ON WAGES. (a) TECHNICAL AMENDMENTs.- Section 1621 (relating to defini- tions) is amended by striking out subsections (e) to (k), both inclu- sive, and inserting in lieu thereof the following: "(e) NUMBER OF WITHHOLDING EXEmwTIoNs CLAIMED.-T he term 'number of withholding exemptions claimed' means the number of withholding exemptions claimed in a withholding exemption certifi- cate in effect under section 1622 (h), except that if no such certificate is in effect, the number of withholding exemptions claimed shall be considered to be zero." (b) PERCENTAGE WITHHOLDINo.- Section 1622 (a) and (b) (1) (relating to percentage withholding) are amended to read as follows: "(a) QUIREENT OF WITHHOLDING. -Every employer making payment of wages shall deduct and withhold upon such wages a tax equal to the sum of the following: "(1) 2.7 per centum of the amount by which the wages exceed the amount of one withholding exemption, the amount of such exemption for various payroll periods being shown in the table in subsection (b) (1) of this section; "(2) 18 per centum of whichever of the following is the lesser: "(A) 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 sub- section (b) (1); or "(B) the amount shown in the last column in the table in subsection (b) (1); "(3) 19.8 per centum of the amount by which the wages exceed the sum of: "(A) the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table in subsection (b) (1) ;plus "(B) the amount shown in the last column in the table in subsection (b) (1). "(b) (1) The table referred to in subsection (a) is as follows: "Percentage Method Withholding Table Pyroll pe-od P~- Weekly.....
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-- Biweekly------------------------------------------ Semimonthly...-- - - --
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- Monthly ------------------------------------------------------------------------ Quarterly ------- ---------------------------------- -- - -- - - -- - -- - - - Semiarnnmual --------------------------------------------- Anna.l -
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Daiy or miscellaneous (per day of such period)___ .-------------------------- Amount of one with- hoding exempton $11.00 22.00 23.00 46.00 139.00 278.00 566.00 1.50 247 57 Stat. 127. 26 U. 8. C., Supp. III, 11621 (e)-(k). Pot,p. 253. 57 Stat. 128 . 26 U. S. C., Supp. III, 1622 (a), (b) (1). Mazu amount mubjeet e 18per centunm rate $44.00 88.00 92.00 184.00 556.00 1,112.00 2,224.00 6.00 " (c) WAGE BRACKET WrrHHoLDIN. - Section 1622 (c) (1) (relating to wage bracket withholding) is amended to read as follows: "(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 determined in accordance with the following tables, which shall be in lieu of the tax required to be deducted and withheld under subsection (a): 57 Stat. 129. 26 U. S. C., Supp. II, J1622 (c) (1).
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