Flat Rate Supplemental Wage Withholding; Correction
This document contains correction to final regulations (TD 9276) that were published in the Federal Register on Tuesday, July 25, 2006 (71 FR 42049), amending the regulations that provide for determining the amount of income tax withholding on supplemental wages. These regulations apply to all employers and others making supplemental wage payments to employees.
Table of Contents Back to Top
DATES: Back to Top
The correction is effective January 1, 2007.
FOR FURTHER INFORMATION CONTACT: Back to Top
A.G. Kelley, (202) 622-6040 (not a toll-free number).
SUPPLEMENTARY INFORMATION: Back to Top
Background Back to Top
The final regulations that are the subject of this correction are under sections 3401 and 3402 of the Internal Revenue Code.
Need for Correction Back to Top
As published, final regulations (TD 9276) contain an error that may prove to be misleading and is in need of clarification.
Correction of Publication Back to Top
Accordingly, 26 CFR part 31 is corrected by making the following correcting amendment:
PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE Back to Top
Paragraph 1. The authority citation for part 31 continues to read, in part, as follows:
Par. 2. Section 31.3402(g)-1(a)(8) is amended by revising the last sentence of Example 3 paragraph (iv). The revision reads as follows:
§ 31.3402(g)-1 Supplemental wage payments.
(a) * * *
(8) * * *
Example 3.* * *
(iv) * * * If R elects to use optional flat rate withholding provided under paragraph (a)(7)(iii)(F) of this section, withholding would be calculated at 25 percent of the $1,000,000 portion of the payment and would be $250,000.
* * * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch,Legal Processing Division,Associate Chief Counsel,(Procedure and Administration).
[FR Doc. E7-1051 Filed 1-25-07; 8:45 am]
BILLING CODE 4830-01-P