516
PUBLIC LAW 92-178-DEC. 10, 1971
[85 STAT.
(b) PERCENTAGE METHOD OF WITHHOLDING.—
26?sc3'4o^2and note.
S^^ Section 3402(b)(1) (relating to percentage method of withholding) is amended to read as follows: "(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)
^^p^^^73 Stat. 118.
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exemption $14. 40 28.80 31. 30 62.50 187. 50 375. 00 750. 00 2.10."
(2) Paragraphs (3) and (4) of section 805(b) of the Tax Reform Act of 1969 are hereby repealed. (c)
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Amount of one withholding
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 be 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 withholding 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 W H E R E EMPLOYEE H A S MORE T H A N
75 Stat. 537.
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 I N 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 withholding exemption which he has claimed under such first certificate." (e)
83 Stat. 707.
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 I N CERTAIN CASES.—Section 3402(m) is amended—
83*statr 70?.'
(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) ^y amending the first sentence of paragraph (2)(D) to read as follows: " I n the case of an employee who nles his return on the basis of a calendar year, the term 'estimation year' means the calendar year in which the wages are paid.", and
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