H0377B2849A05356 SFL:CMM 01/15/08 #90 A05356 AMENDMENTS TO HOUSE BILL NO. 377 Sponsor: REPRESENTATIVE CUTLER Printer's No. 2849 1 Amend Title, page 1, line 11, by removing the period after 2 "poverty" and inserting 3 ; and further providing, in personal income tax, for 4 requirement of withholding tax. 5 Amend Bill, page 2, line 27, by striking out all of said line 6 and inserting 7 Section 2. Section 316 of the act, added August 31, 1971 8 (P.L.362, No.93), is amended to read: 9 Section 316. Requirement of Withholding Tax.--[Every] (a) 10 Except as provided under subsection (b), every employer 11 maintaining an office or transacting business within this 12 Commonwealth and making payment of compensation [(i)] (1) to a 13 resident individual, or [(ii)] (2) to a nonresident individual 14 taxpayer performing services on behalf of such employer within 15 this Commonwealth, shall deduct and withhold from such 16 compensation for each payroll period a tax computed in such 17 manner as to result, so far as practicable, in withholding from 18 the employe's compensation during each calendar year an amount 19 substantially equivalent to the tax reasonably estimated to be 20 due for such year with respect to such compensation. The method 21 of determining the amount to be withheld shall be prescribed by 22 regulations of the department. 23 (b) Subsection (a) shall not apply to the withholding of tax 24 from compensation of any resident or nonresident individual 25 serving in the armed forces of the United States in an area 26 designated by the President of the United States by Executive 27 Order as a combat zone as described under section 7508 of the 28 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 29 7508), as amended, at any time during the period designated by 30 the President by Executive Order as the period of combatant 31 activities in the combat zone or hospitalized as a result of 32 injury received while serving in the combat zone during such 33 time. 34 Section 3. The amendment of section 316 of the act shall 35 apply to taxable years beginning on or after December 31, 2007. 36 Section 4. This act shall take effect July 1, 2008, or 37 immediately, whichever is later. A15L90SFL/HB0377A05356