The Waterbury Democrat., 1943-06-17
WageEarners Advised
To File Certificates
Withholding Exemptions in Pay-as-YOu-GO income
Tax Plan Explained By Secretary Of Treasury

amount to more than the exemp-
tons. Wages, for withholding pur-
poses, means all remuneration (other
than fees paid to a public OfficiaD
for services performed by an en-
ploye for his employer, including the
cash value Of all remuneration paid
in any medium other than cash.
List Of Exceptions
Among those excluded by the law
from income and Victory tax with
holding are: Members of the mill
tary or naval forces; agricultural
labor; ministers OF the gospel; do
nestle servants in private homes,
college fraternities or clubs; casual
labor; U. S. citizens employed by
foreign governments or the Philip
pine government; nonresident
aliens other than residents of con-
tigious countries who enter and leave
the country at frequent intervals, Or
as may be designated by regulations.
The first requirement of the with
holding system is that the employe
promptly inform his employer OF
his family status and the number OF
his dependents, so the employer may
determine the amount to be with
held. The employe furnishes his
employer with this information
through signed Withholding exemp-
ton certificate If his status
changes, the employe is required to
give his employer new certificate
within 10 days. Employers are not
required to put changes in status
into effect Immediately, but are
given ample time to adjust their
payrolls through provision for rec
ognizing changes ON either January
or July l.
Every employer Is required to
withhold the proper amount from
hic employees. He is entitled to rely
on the employees exemption certifi-
cate in computing the amount to be
withheld. If the employe fails to
furnish the certificate, no eXemp-
tic. will be allowed. 1t is the en-
ploye's responsibility to furnish his
employer with information con-
corning his family status.
The employer is required to give
each employe at the end Of the year,
or at the termination of his en-
ployment, written statement
showing the wages paid him dur
ing the year and the amount of tax
which has been withheld, except
that an extension of 80 days may
be granted by the Commissioner of
Internal Revenue. This statement is
the employees receipt for tax with
held.
Each employer withholding $100
or more month will be required to
pay over the tax withheld from his
employees to depositary authorized
by the Secretary of the Treasury.
These payments are to be made
within 10 days after the close of
each calendar month, and the en-
ployer files return at the end OF
each quarter.
In place of the present informa-
ton returns on wages, the employer
Is required to attach to the last
quarterly return for the calendar
year copies Of receipts given his
employees so they may be checked
against the employees individual re-
turns.
Persons whose tax is not withheld
at the source, or not adequately
withheld, will have to file current
returns. Included in this group are
q those whose incomes are not
derived from wage salaries, but from |
business, farming, rents and royal
ties, interest and dividends, and CD |
those who, although subject to |
withholding, receive income taxable
at more than the 20 per cent rate.
Taxpayers who have more than
500 of income not subject to with
holding, and whose total gross in
come would require them to file in
come tax returns at the end OF the |
year, also must file current returns. |
The current returns are declara-
tons of the tax which the person
making the return estimates he will |
have to pay for the current year.
These declarations are to be filed |
with the collector of internal rev.
enue on September Is, 1943, and on
March Is each year starting with
1914. The estimated tax is to be !
paid quarterly, after credit is taken
for amounts withheld or otherwise
already paid The estimates may be
revised each quarter, with payments
increased or decreased accordingly.
Farmers Advised
A special rule applies to farmers.
They may file their declarations
any time up to December Is.
Every taxpayer is required to file
final return on or before March
Is, 1914. On this return adjustments
will be made for differences be-
tween estimated or withheld tax, or
both, and the correct tax reported
by the taxpayer.
On this return, also, Victory taxes
withheld from January to June 80,
l943, and income and Victory taxes
withheld from July ! through De-
cember 81, 1943, income tax install
mentS paid March Is and June Is,
1943, and any additional estimated !
taxes paid September Is and De-
cember Is, 1943, will be credited as
payment of the 1943 tax. If the tax
payer owes more, he must pay that
amount in full at this time. IF he
owes less, the treasury will refund
or credit the balance