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11.0520 Section 3402(a) amended.

Cite as [A.S.C.A. 11.0520]

Section 3402(a), relating to requirements of withholding with respect to income tax collected at the source, is amended to read as follows:
“(a) Requirement of withholding:
(1) Except as provided in paragraph (2), 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)(l);
(2) If, based upon the information contained in an employee’s exemption certificate, it appears that such employee will be subject to the tax imposed by section 5 of chapter 1, every employer making payment of wages to such individual shall deduct and withhold upon such wages a tax equal to 2 percent of such wages.

History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970, PL 11-134; amd 1980, PL l6-87 § 2.

Amendments: 1980 Changed withholding tax from 2 1/2 percent to 2 percent in paragraph (2).