CH. 24—COLLECTION AT SOURCE ON WAGES
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a State, Territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an oflficer of a corporation. (d) EMPLOYER.—For purposes of this chapter, the term "employer" means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that— (1) if the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term "employer" (except for purposes of subsection (a)) means the person having control of the payment of such wages, and (2) in the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term "employer" (except for purposes of subsection (a)) means such person. (e) N U M B E R OF WITHHOLDING EXEMPTIONS CLAIMED.—For purposes of this chapter, the term "number of withholding exemptions claimed" means the number of withholding exemptions claimed in a withholding exemption certificate in effect under section 3402(f), or in effect under the corresponding section of prior law, except that if no such certificate is in effect, the number of withholding exemptions claimed shall be considered to be zero. SEC. 3402. INClJOME TAX COLLECTED AT SOURCE. (a) REQUIREMENT O F WITHHOLDING.—Every employer
making
payment of wages shall deduct and withhold upon such wages a tax equal to 18 percent of the amount by which the wages exceed the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in subsection (b)(1). (b) PERCENTAGE M E T H O D OF WITHHOLDING.—
(1) The table referred to in subsection (a) is as follows: Percentage Method Withholding Table
Payroll period
Weekly Biweekly.. Semimonthly Monthly Quarterly Semiannual ..... Annual Daily or miscellaneous (per day of such period).
Amount of one withholding exemption $13.00 26.00 28.00 56.00 167.00 333.00 667.00 1.80
(2) If wages are paid with respect to a period which is not a payroll period, the withholding exemption allowable with respect to each payment of such wages shall be the exemption allowed for a miscellaneous payroll period containing a number of days (including Sundays and holidays) equal to the number of days in the period with respect to which such wages are paid. 49012°—54
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§ 3402(b)(2)
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