AN ACT

 

1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act elating to tax reform and State taxation by codifying and
3enumerating certain subjects of taxation and imposing taxes
4thereon; providing procedures for the payment, collection,
5administration and enforcement thereof; providing for tax
6credits in certain cases; conferring powers and imposing
7duties upon the Department of Revenue, certain employers,
8fiduciaries, individuals, persons, corporations and other
9entities; prescribing crimes, offenses and penalties,"
10further providing for requirement of withholding tax.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1.  Section 316 of the act of March 4, 1971 (P.L.6, 
14No.2), known as the Tax Reform Code of 1971, added August 31, 
151971 (P.L.362, No.93), is amended to read:

16Section 316.  Requirement of Withholding Tax.--[Every] (a)  
17Except as provided under subsection (b), every employer
18maintaining an office or transacting business within this
19Commonwealth and making payment of compensation [(i)] (1) to a

1resident individual, or [(ii)] (2) to a nonresident individual
2taxpayer performing services on behalf of such employer within
3this Commonwealth, shall deduct and withhold from such
4compensation for each payroll period a tax computed in such
5manner as to result, so far as practicable, in withholding from
6the employe's compensation during each calendar year an amount
7substantially equivalent to the tax reasonably estimated to be
8due for such year with respect to such compensation. The method
9of determining the amount to be withheld shall be prescribed by
10regulations of the department.

11(b)  Subsection (a) shall not apply to the withholding of tax 
12from compensation of a resident or nonresident individual 
13serving in the armed forces of the United States in an area 
14designated by the President of the United States by Executive 
15order as a combat zone as described under section 7508 of the 
16Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 
177508), as amended, at any time during the period designated by 
18the President by Executive order as the period of combatant 
19activities in the combat zone or hospitalized as a result of 
20injury received while serving in the combat zone during that 
21time.

22Section 2.  This act shall take effect in 60 days.