If the payroll period with respect to an employee is a daily payroll period or a miscellaneous payroll period And the number of withholding exemptions claimed is And the wages divided by the number of days in such period are 0 The amount of tax to be withheld shall be the following amount multiplied by the number of days in such period § 31.3402(f) (1)-1 Withholding ex § 31.3402(f) (6)-1 emption for aliens. Withholding excertain nonresident emptions. (d) Inclusion of account number on withholding exemption certificate. Every individual to whom an account number has been assigned shall include such number on any withholding exemption certificate filed with an employer. For provisions relating to the obtaining of an account number, see § 31.6011 (b)-2. CODIFICATION: In § 31.3402 (f) (2)-1, paragraph (d) was added, T.D. 6606, 27 F.R. 8516, Aug. 25, 1962, and revised, T.D. 6654, 28 F.R. 5252, May 28, 1963. § 31.3402(f) (6) Statutory provisions; income tax collected at source; withholding exemptions; certain resident aliens. non (f) Withholding exemptions. * (6) Exemption of certain nonresident aliens. Notwithstanding the provisions of paragraph (1), a nonresident alien individual (other than an individual described in section 3401(a) (6) (A) or (B)) shall be entitled to only one withholding exemption. [Sec. 3402(f) (6) as added by sec. 110(g) (2), Mutual Educational and Cultural Exchange Act 1961 (75 Stat. 537)] [T.D. 6654, 28 F.R. 5253, May 28, 1963] Section 3402(f) (6) applies to each nonresident alien individual who is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101(a) (15) of the Immigration and Nationality Act (8 U.S.C. 1101), as amended, including each nonresident alien individual who is an "exchange visitor" under section 201 of the United States Information and Educational Exchange Act of 1948 (22 U.S.C. 1446). Any such nonresident alien individual is entitled to only one withholding exemption with respect to wages paid after December 31, 1961. Section 3402 (f) (6) is not applicable to the residents of Canada, Mexico, or Puerto Rico described in subparagraph (A) or (B) of section 3401(a) (6). For provisions relating to nonresident alien individuals, see $31.3401(a) (6) -1. [T.D. 6654, 28 F.R. 5253, May 28, 1963] § 31.3402(g)-1 Supplemental wage payments. (a) In general. * * * (2) The supplemental wages, if paid concurrently with wages for a payroll period, shall be aggregated with the wages paid for such payroll period. If not paid concurrently, the supplemental wages shall be aggregated with the wages paid or to be paid within the same calendar year for the last preceding payroll period or for the current payroll period. The amount of tax to be withheld shall be determined as if the aggregate of the supplemental wages and the regular wages constituted a single wage payment for the regular payroll period. Example (1). A is employed as a salesman at a monthly salary of $100 plus commissions on sales made during the month. The number of withholding exemptions claimed is one. During January 1965 A earns $275 in commissions, which together with the salary of $100 is paid on February 10, 1965. Under the wage bracket method the amount of the tax required to be withheld is shown in the table applicable to a monthly payroll period. Under this table it will be found that the amount of tax required to be withheld is $44.30. Example (2). B is employed at a salary of $3,000 per annum paid semimonthly on the 15th day and the last day of each month, plus a bonus and commission determined at the end of each 3-month period. The number of withholding exemptions claimed is four. The bonus and commission for the 3month period ending on March 31, 1965, amount to $250, which is paid on April 10, 1965. Under the wage bracket method, the amount of tax required to be withheld on the aggregate of the bonus of $250 and the last preceding semimonthly wage payment of $125, or $375 is $36.20. Since tax in the amount of $2.10 was withheld on the semimonthly wage payment of $125, the amount to be withheld on April 10, 1965, is $34.10. If, however, supplemental wages are paid and tax has been withheld from the employee's regular wages, the employer may determine the tax to be withheld from supplemental wages by using the applicable rate under section 3402 (a) without allowance for exemption and without reference to any regular payment of wages. (b) Special rule where aggregate withholding exemption exceeds wages paid. (1) If supplemental wages are paid to an employee during a calendar year for a period which involves two or more consecutive payroll periods, for which other wages also are paid during such calendar year, and the aggregate of such other wages is less than the aggregate of the amounts determined under the table provided in section 3402 (b) (1) as the withholding exemptions applicable for such payroll periods, the amount of the tax required to be withheld on the supplemental wages shall be computed as follows: Step 1. Determine an average wage for each of such payroll periods by dividing the sum of the supplemental wages and the wages paid for such payroll periods by the number of such payroll periods. Step 2. Determine a tax for each payroll period as if the amount of the average wage constituted the wages paid for such payroll period. Step 3. From the sum of the amounts of tax determined in Step 2 subtract the total amount of tax withheld, or to be withheld, from the wages, other than the supplemental wages, for such payroll periods. The remainder, if any, shall constitute the amount of the tax to be withheld upon the supplemental wages. Example. An employee has a weekly payroll period ending on Saturday of each week, the wages for which are paid on Friday of the succeeding week. On the 10th day of each month he is paid a bonus based upon production during the payroll periods for which wages were paid in the preceding month. The employee is paid a weekly wage of $64 on each of the five Fridays occurring in April 1965. On May 10, 1965, the employee is paid a bonus of $125 based upon production during the five payroll periods covered by the wages paid in April. On the date of payment of the bonus the employee, who is married and has three children, has a withholding exemption certificate in effect claiming five withholding exemptions. The amount of the tax to be withheld from the bonus paid on May 10, 1965, is computed as follows: Wages paid in April 1965 for 5 pay- Aggregate of wages and bonus.. Average wage per payroll period (8445-÷-5) Computation of tax under percentage method: Withholding exemptions (5×$13) – Remainder subject to tax-----. Tax on average wage for 1 week (14 percent of $24). Tax on average wage for 5 weeks....... Less: Tax previously withheld on weekly wage payments of $64---. Tax to be withheld on supplemental wages. Computation of tax under wage bracket method: Tax on $89 wage under weekly wage table ($3.50 per week for 5 weeks) -Less: Tax previously withheld on weekly wage payments of $64 ($0.10 per week for 5 weeks) Tax to be withheld on supplemental wages.. * $320.00 125.00 445.00 89.00 65.00 24.00 3.36 16.80 None 16.80 17.50 0.50 17.00 para CODIFICATION: In § 31.3402(g)-1, graphs (a) (2) and (b)(1) were amended by T.D. 6860, 30 F.R. 13947, Nov. 4, 1965. |