Page:United States Statutes at Large Volume 95.djvu/211

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 185

"(ii) on July 1, 1983, as if such reductions were attributable to a 10-percent reduction effective on such date." (2) WAGES PAID FOR PERIOD LESS THAN i WEEK.—Section 3402(b) 26 USC 3402. (relating to the percentage method of withholding) is amended— (A) by striking out paragraph (1), and redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively; and (B) by striking out paragraph (3), as redesignated by subparagraph (A), and inserting in lieu thereof the following: "(3) In any case in which the period, or the time described in paragraph (2), in respect of any wages is less than one week, the Secretary, under regulations prescribed by him, may authorize an employer to compute the tax to be deducted and withheld as if the aggregate of the wages paid to the employee during the calendar week were paid for a weekly payroll period." (3) ZERO BRACKET AMOUNT.—Paragraph (1)(G) of section 3402(f) (relating to withholding exemptions) is amended by inserting "(or more than one exemption if so prescribed by the Secretary)" after "one exemption". (4) CHANGES IN WITHHOLDING.—Section 3402(i) (relating to

additional withholding) is amended to read as follows: "(i) CHANGES IN WITHHOLDING.—

"(1) IN GENERAL.—The Secretary may by regulations provide for increases or decreases in the amount of withholding otherwise required under this section in cases where the employee requests such changes, "(2) TREATMENT AS TAX.—Any increased withholding under paragraph (1) shall for all purposes be considered tax required to be deducted and withheld under this chapter." (5) WITHHOLDING ALLOWANCES.—Subsection (m) of section 3402 (relating to withholding allowances based on itemized deductions) is amended to read as follows: "(m) WITHHOLDING ALLOWANCES.—Under regulations prescribed by the Secretary, an employee shall be entitled to additional withholding allowances or additional reductions in withholding under this subsection. In determining the number of additional withholding allowances or the amount of additional reductions in withholding under this subsection, the employee may take into account (to the extent and in the manner provided by such regulations)— "(1) estimated itemized deductions allowable under chapter 1 (other than the deductions referred to in section 151 and other than the deductions required to be taken into account in determining adjusted gross income under section 62) (other than paragraph (13) thereof), "(2) estimated tax credits allowable under chapter 1, and "(3) such additional deductions and other items as may be specified by the Secretary in regulations." (f) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendments made by subsections (a), (c), 26 USC l note. and (d) shall apply to taxable years beginning after December 31, 1981. (2) WITHHOLDING AMENDMENTS.—The amendments made by 26 USC 3402 subsection (e) shall apply to remuneration paid after September "°^^30, 1981; except that the amendment made by subsection (e)(5) shall apply to remuneration paid after December 31, 1981.

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