The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-06-17

the weekly exemption Of $1,000 ap-
plicable in the case OF single
person.
This weekly exemption rule may
be used by an employer In the
case of an employe who works
only for such employer during the
calendar week.
II. Bonuses and Commissions
Generally. where an employees
remuneration consists OF wages
paid for payroll period and such
employe is also paid a bonus or
commission, the bonus or commits
sion and the wage payment shall
be aggregated for the purpose OF
Withholding either under the wage
table method or the exact compu-
tation method. For example, IL an
individual is employed as sales
man at a monthly salary OF 500
plus commissions upon sales made
during the month. such employe,
IL single. would be entitled to a
withholding exemption of $50
against each such payment OF sal
airy and commissions considered
as a single wage payment.
However. at the election OF the
employer. the wage payment and
the bonus or commission payment
need not be aggregated Under
this election the employer using
the exact computation method
may withhold on the gross amount
of the bonus or commission pay
ment. The employer who uses
the table method may, under this
election, apply that method to the
regular wage payment. and with
respect TO the bonus or commits
sion payment may either (D ap-
ply the exact computation meth
cd to the gross amount, or CD use
the column in the table applicable
TO a married person claiming none
OF the personal exemption for
Withholding and having no de-
pendents.
u. Withholding on Basis Of
Average Wages
Upon application to the Com
missioner. accompanied by evil
dence establishing the need for
the use Of such method. the Com
missioner may authorize an en-
ployer to withhold the tax on the
basis OF the employees average
estimated wages, with necessary
adjustments. for any quarter.
10. Computation OF Tax to be
Withheld
At the option OF the employer,
the tax to be withheld may be
determined either by the use OF a
wage bracket Withholding table or
the application OF the prescribed
percentage rate to the amount OF
the wages in excess OF the with,
holding exemption
The steps to be taken by the EN-
ployer using the percentage meth.
cd are as follows:
az The rule requires that tax
be withheld at the rate OF 20 pei
cent on wages in excess Of the
family status Withholding exemp
ton. or at the rate OF 3 per ceni
on wages in excess OF the Victory
Tax withholding exemption. which
ever rate produces the greater tax
The employer must determine
which Withholding exemption tc
allow and which rate TO use.
(2) The employer finds from the
Family Status Withholding Exemp
ton Schedule. shown In Specific
Instruction s. that married EN-
ploye having weekly payroll
period and claiming all the per
sonal exemption Is entitled to ar
exemption OF $2f00 and an add
tional allowance Of $500 for each
OF his two dependents. which II
this instance makes a total exemp
ton OF $500. Since the wage,
paid are t44s3, the tax must bs
computed at 20 per cent Of the tx
cess over the family status with
holding exemption rather than
per cent NJ the excess over tbs
Victory Tax Withholding eIemp
ton.
ca The employer suhstrscti
this exemption OF $500 from th'
weekly wage Of s4t63 and obtains