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.

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