(1)provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to the State, or by granting to employers generally the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld; and
(2)imposes the duty or grants the authority to withhold generally with respect to the pay of employees who are residents of the State;
the Secretary of the Treasury, under regulations prescribed by the President, shall enter into an agreement with the State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the State withholding statute in the case of employees of the agency who are subject to the tax and whose regular place of Federal employment is within the State with which the agreement is made. In the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made”.
(b)This section does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on other employers, or which subjects the United States or its employees to a penalty or liability because of this section. An agency of the United States may not accept pay from a State for services performed in withholding State income taxes from the pay of the employees of the agency.
(c)For the purpose of this section, “State” means a State, territory, possession, or commonwealth of the United States.
(d)For the purpose of this section and sections
5520, the terms “serve as a member of the armed forces” and “service as a member of the Armed Forces” include—
(1)participation in exercises or the performance of duty under section
502 of title
32, United States Code, by a member of the National Guard; and
(2)participation in scheduled drills or training periods, or service on active duty for training, under section
10147 of title
10, United States Code, by a member of the Ready Reserve.
1976—Subsec. (a). Pub. L. 94–455, § 1207(a)(1), (c), inserted in par. (1) provision relating to the grant to employers of the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld, inserted in par. (2) “or grants the authority” after “imposes the duty”, and substituted in text following par. (2) provisions that in the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made” for provision that the agreement may not apply to pay for service as a member of the armed forces.
Section 1462(b) ofPub. L. 105–34provided that: “The amendment made by subsection (a) [amending this section] shall take effect on January 1, 1998.”
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–337effective Dec. 1, 1994, except as otherwise provided, see section 1691 ofPub. L. 103–337, set out as an Effective Date note under section
10001 of Title
10, Armed Forces.
Effective Date of 1976 Amendment
Amendment by section 1207(a)(1) ofPub. L. 94–455applicable to wages withheld after the 120-day period following any request for an agreement after Oct. 4, 1976, see section 1207(f)(1) ofPub. L. 94–455, set out as a note under section
5516 of this title.
Section 1207(f)(2) ofPub. L. 94–455provided that: “The amendments made by subsections (b) and (c) [amending this section] shall apply to wages withheld after the 120-day period following the date of the enactment of this Act [Oct. 4, 1976].”
Executive Order No. 10407
Ex. Ord. No. 10407, Nov. 7, 1952, 17 F.R. 10132, which related to regulations governing agreements concerning withholding of state or territorial income taxes, was revoked by Ex. Ord. No. 11968, Jan. 31, 1977, 42 F.R. 6787, formerly set out as a note under section
5520 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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