Vol 1 - Part 3 - Chapter 5000 WITHHOLDING OF DISTRICT OF COLUMBIA, STATE, CITY, AND COUNTYINCOME FOR EMPLOYMENT TAXES Section 5010 - SCOPE AND APPLICABILITY This chapter provides instructions for withholding State, city, or county income taxes when an agreement has been reached between a State, city, or county and the Secretary of the Treasury. Agreements between the Secretary of the Treasury and States, cities, or counties prescribe how Federal agencies withhold State, city, or county income or employment taxes from the compensation of Federal employees and Armed Forces members. (See 31 CFR 215 at Appendix 1). A list of States that have entered into agreements, and designated State tax offices to receive inquiries, is included as Appendix 2. A list of cities and counties that have entered into agreements, the type of tax to be withheld for each city or county, and the designated city or county tax offices to receive inquiries is included as Appendix 3. A list of States, cities, and counties with other-than-standard agreements is at Appendix 4. Section 5015 - AUTHORITY Title 5, section 5517, U.S. Code and Executive Order 11997 (June 22, 1977) provide for withholding State income taxes from the compensation of Federal employees and members of the Armed Forces when an agreement is made between the Secretary of the Treasury and the proper State official. To comply with 5 U.S.C. 5516 (47 D.C. Code 15862) and Executive Order 11997 (June 22, 1977), the Secretary of the Treasury and an official of the District of Columbia entered into an agreement for withholding District of Columbia income taxes from the compensation of Federal employees and Armed Forces members. Title 5, section 5520, U.S. Code and Executive Order 11997 (June 22, 1977) authorize the Secretary of the Treasury to make an agreement with the proper official of an eligible city or county for withholding city or county income or employment taxes from Federal employees' compensation. The Code of Federal Regulations (31 CFR 215) governs withholding of State, city, and county taxes. It prescribes requirements for making agreements and contains the text of a standard agreement. Section 5020 - DEFINITION OF TERMS See Appendix 1, Subpart A, section 215.2. Section 5025 - SEVERANCE PAY Federal employees' compensation subject to withholding of State, city, or county income or employment taxes includes severance pay, according to 5 U.S.C. 5595, if paid to a former employee. Severance pay remaining unpaid upon the death of a former employee is not subject to such withholding upon payment to a survivor or survivors. Section 5030 - ADMINISTRATION OF AGREEMENTS 5030.10 - Agency Responsibility. The heads (or designees) of agencies must comply with provisions in the agreements and with State laws, city or county ordinances, regulations, and instructions concerning withholding taxes, filing returns, and paying taxes. Agencies consult directly with tax authorities for obtaining forms and instructions. Agencies withhold State, city, or county income or employment taxes only for States, cities, and counties identified in Appendices 2 and 3. The Program Implementation Branch (Section 5095) will be consulted when an agency is requested to withhold a tax not identified in the appendices to this chapter as eligible for withholding. 5030.20 - Reciprocal Agreements. Requirements of States for withholding income tax may be modified by reciprocal agreements among States. These agreements generally relieve nonresident employees of their tax liability to the State in which they are employed. They also relieve their employer of the duty to withhold such taxes. To comply with Treasury-State withholding agreements, agencies must conform to the withholding provisions of reciprocal agreements. 5030.30 - Withholding Agent. Agencies may use the same designated officers or employees for withholding State and city or county income or employment taxes as they use for withholding Federal taxes. When required by the State, city, or county, the appropriate authorities will be provided the names of the Federal officers or employees who are designated to perform the withholding duties. 5030.40 - Report of Noncompliance. At the request of the Secretary of the Treasury, agency heads will furnish a report of noncompliance with provisions of any agreement or any information connected with the administration of the agreements. Section 5035 - WITHHOLDING REQUIREMENTS 5035.10 - State Tax Withholding. State tax withholding is required for agency employees who are subject to the tax and whose regular place of Federal employment is within the political boundaries of the State that has entered into an agreement. (See Section 5045 for military withholding instructions.) 5035.20 - City or County Tax Withholding. City or county tax withholding is required for agency employees who are subject to the tax and (1) whose regular place of Federal employment is within the city or county that has entered into an agreement or (2) is a resident of the city or county. 5035.30 - Regular Place of Federal Employment. Generally, an "official duty station" is designated for Federal employees where they report regularly to perform their services. In the case of employees whose duties are performed at a place other than their "official duty station," the regular place of Federal employment is the place where the employees regularly perform their duties. 5035.40 - Services Performed Outside a City or County. Many city and county ordinances provide that withholding will be based on compensation paid for services performed only within the city or county. In most cases, this provision applies only to nonresidents of the city or county. Employees affected by this provision, who perform part of their services outside of the city or county, away from their regular place of employment, must complete a withholding certificate. The certificate is to estimate the percentage of their annual compensation for services performed outside the city or county so withholdings may be reduced accordingly. In the absence of such certification, tax must be withheld on the employees' entire compensation. To avoid large numbers of withholding actions, when only a moderate difference between employees' annual compensation and the estimated percent paid for services performed within the city or county exists, agencies should reduce withholdings only when employees perform 25 percent or more of their services outside the city or county. FMS Form 7311: Employee's Withholding Certificate for Local Taxes - City or County (Appendix 5), contains these instructions. 5035.50 - Withholding Methods. The amount of State, city, or county income or employment tax withheld from the compensation of an employee or member of the Armed Forces must, at a minimum, approximate the tax required to be withheld. Withholding may be accomplished as follows: Based on the applicable tax withholding rate(s) specified in the State, city, or county instructions. Based on any other percentage or formula method. Calculating a fixed amount to be deducted each pay period from the compensation of the employee or member of the Armed Forces. Section 5040 - TAX WITHHOLDING CERTIFICATES 5040.10 - Withholding Certificate Requirement. Each agency may require its employees to complete a withholding certificate as the basis to properly withhold State and local taxes. The certificate should specify if the employee is subject to the tax, employee's residence and regular place of employment, exemptions, and allowances (if applicable), and if an out-of-state employee consents to have city or county taxes withheld. A supervisor or designated employee should verify that the withholding certificate has been properly prepared. An agency may rely on the withholding certificate information unless it is contrary to information already held by the agency. The certificate will remain in effect until superseded by a new certificate prepared by the employee. 5040.20 - Submission or Nonsubmission of Withholding Certificate. A withholding certificate completed by an employee gives the agency all the information to properly withhold tax. If an employee does not furnish a withholding certificate as requested by the agency, the agency will withhold at the maximum level applicable to the employee's annual compensation. This latter provision does not apply to an employee who may opt for voluntary withholding; in this case, failure to submit a withholding certificate will be considered a refusal of the withholding option available to the employee (Section 5065). 5040.30 - Forms to be Used. Agencies may use a withholding or exemption certificate furnished by a State, city, or county, if that document provides all the required information. If it does not, agencies may use a certificate approved by Treasury. 5040.40 - FMS Form 7311: Employee's Withholding Certificate for Local Taxes. Agencies may use FMS Form 7311 if a local taxing authority does not furnish an appropriate certificate. Agencies are requested to reproduce the FMS Form 7311 for their own use. Any revision to the form must be approved in advance as required by I TFM 1-2000. However, overprinting the form does not require clearance with Treasury. A limited supply of FMS Forms 7311 may be obtained by contacting: Programs Branch Property and Supply Section Facilities Management Division Financial Management Service Department of the Treasury Ardmore East Business Center 3361-L 75th Avenue Landover, MD 20785 (Telephone 301-344-8577) 5040.50 - Information for States, Cities, or Counties. Agencies may furnish copies of completed withholding certificates when requested by the taxing authority for which the tax was withheld. Section 5045 - MILITARY WITHHOLDING 5045.10 - Basis for Withholding. State income taxes will be withheld from the compensation of members of the Armed Forces, based on State of legal residence, when that State has made an agreement with the Secretary of the Treasury. If the local taxing jurisdiction has made an agreement with the Secretary of the Treasury, local taxes will be withheld from the compensation of (1) members of the National Guard participating in exercises or performing duty under 32 U.S.C. 502, and (2) members of the Ready Reserve participating in scheduled drills or training periods, or serving on active duty for training under 10 U.S.C. 270(a). 5045.20 - Certification of Legal Residence. Agencies will use DD Form 2058: State of Legal Residence Certificate (Appendix 6), to (1) determine the State of legal residence for purposes of withholding, (2) record changes of the State of legal residence, and (3) notify States of changes of legal residence according to the terms of the agreements. Section 5050 - ACCOUNTING FOR WITHHELD TAXES The amount withheld each pay period from the compensation of employees or members of the Armed Forces will be recorded on their individual earnings records. The total amount withheld will be disbursed each pay period from the appropriations from which the payroll is paid and credited to the deposit fund--X6275 "Withheld State and Local Taxes," pending payment to the taxing authority. Agencies will maintain appropriate internal subsidiary records to show (1) the amounts withheld for each tax class and (2) a breakdown of the total taxes withheld for each taxing authority. Section 5055 - CORRECTION OF ERRORS An error made in a prior pay period of the current calendar year will be corrected if the employee is still on the agency's payroll. Make the correction by adjusting the deduction for the current pay period by an amount sufficient to offset the error in the withheld taxes and the net pay of the employee. If the error occurred in a prior calendar year or the employee is no longer on the payroll, no adjustment should be made. Section 5060 - PAYMENT OF WITHHELD TAXES 5060.10 - Timing of Payments. The basic provision in the Treasury agreements is that each Federal agency will comply with the withholding requirements of the State, city, or county tax laws. Therefore, the payment requirements (biweekly, monthly, or quarterly) of the State, city, or county tax laws currently in effect will be observed by each Federal agency. However, payment will not be made more frequently than required by the State, city, or county, or more frequently than the payroll is paid by the agency. 5060.20 - Payment Identification. Checks will be issued by the disbursing office on the basis of an SF 1166: Voucher and Schedule of Payments, or other approved voucher form. Checks sent to States, cities, counties, or their collection agents will be accompanied by the related tax payment documents prescribed by the States, cities, or counties. If an SF 1166 is used, a copy of the tax payment document will be considered a basic voucher for the payment, and no other voucher is required. The word "Taxes" should be entered in the "Voucher No." column of the SF 1166. Section 5065 - VOLUNTARY WITHHOLDING 5065.10 - Statutory Election. When a State tax statute provides for voluntary withholding, Federal agencies will withhold State taxes only from those employees or members of the Armed Forces who elect such withholding. 5065.20 - Regulations Providing for Voluntary Allotments. The Office of Personnel Management (OPM) pay regulations 5 CFR 550.351 provide for voluntary payroll deductions of State, District of Columbia, or local income or employment taxes from salaries of Federal employees who have a legal obligation to pay, whether or not Treasury has a withholding agreement with their taxing jurisdiction. Agencies may also refer to the Federal Personnel Manual (FPM) Supplement 990-2 of May 11, 1981. 5065.30 - Accounting for Voluntary Withholding. The amount of voluntary withholding will be deposited in the deposit fund--X6275 "Withheld State and Local Taxes" and accounted for as prescribed in Section 5050. Section 5070 - DISCLOSURE OF WITHHOLDING INFORMATION 5070.10 - Annual Wage and Tax Information Returns. Annual wage and tax information furnished to taxing authorities must comply with the Privacy Act of 1974. If an agency has not obtained prior written consent of an employee or has not published a routine use in the Federal Register, annual wage and tax information will be furnished under this section only to taxing authorities with whom the Secretary of the Treasury has entered into agreements (Appendices 2 and 3). The information returns will consist of the name, address, social security number, wages (as defined in 26 U.S.C. 340l(a) of the Internal Revenue Code), and the amount of tax withheld, if any. Disclosure to States. In the case of an agreement with a State, agencies will provide the indicated information with respect to those employees who (1) are subject to mandatory withholding, or (2) may elect withholding under a State law. Disclosure to Cities or Counties. Agencies who have an agreement with a city or county will provide the indicated information with respect to employees who are subject to (1) mandatory withholding or (2) city or county taxes, but not subject to mandatory withholding because they are not residents or not employed in the State in which the city or county is located, whether or not they have opted for voluntary withholding (Section 5065). Notices of Routine Use. Each agency must publish notices of routine use in the Federal Register to comply with the Privacy Act of 1974, indicating the information under this subsection routinely disclosed by such agency to State, city, or county authorities and the circumstances under which such disclosure is made. Additional Disclosure and Inspection of Records. Agencies are not required by the terms of Treasury's withholding agreements to provide any additional information or more frequent wage and tax information returns to State, city, or county taxing authorities than is outlined in this section, or to submit to any inspection or audit of payroll records by State, city, or county taxing authorities. 5070.20 - Exemption Certificates. Employees who would otherwise be subject to mandatory withholding pursuant to an agreement between the Secretary of the Treasury and an applicable State, city, or county authority may file a certificate indicating that they are not subject to the tax. In such cases, the agency may provide, to the designated official of the State, city, or county imposing the tax, information concerning employees who claim to be exempt from the tax. Such information will include the name, social security number, and the claimed basis for exemption. Each agency must determine which bases for exemption from the tax are acceptable under the law. Agencies should ensure compliance by requiring the use of appropriate tax exemption certificates. 5075.30 - Notice to Employees. Federal agency forms, including withholding and exemption certificates, will comply with the Privacy Act of 1974. When a State, city, or county form is used, each agency must provide the employee from whom the information is solicited a Privacy Act Notice, either on the applicable form or on a separate sheet of paper. A suggested statement follows: The following information is provided to comply with the Privacy Act of 1974 (Public Law 93-579). The social security number is required under the authority of Executive Order 9397 to provide taxpayer identification. The other information is required under the provisions of 5 U.S.C. 5516, 5517, or 5520 for the purpose of implementing a Federal agreement with the State, city, or county relating to withholding of State, city, or county income or employment taxes to comply with a State law or municipal or county ordnance. The information provided may be disclosed to State, city, or county officials to ensure that the taxpayer's account has been properly credited for the amounts withheld. Failure to disclose the information requested may affect the determination of the accuracy of the amount withheld. Section 5095 - INQUIRIES Inquiries concerning this chapter should be directed to: Program Implementation Branch Financial Management Service Department of the Treasury Liberty Center (Rm 312) Washington, DC 20227 (Telephone 202-874-6580) APPENDICES LISTING App. No. Form Title 1 Regulations - Withholding of District of Columbia, State, City, and County Income or Employment Taxes by Federal Agencies - (31 CFR 215) 2 List of States with which the Secretary of the Treasury Has Withholding Agreements, Effective Dates, and Addresses of Tax Offices 3 List of Cities and Counties with which the Secretary of the Treasury Has Withholding Agreements, Effective Dates, Types of Tax, and Addresses of Tax Offices 4 List of States, Cities, and Counties with Other-Than-Standard Agreements 5 FMS Form 7311 Employee's Withholding Certificate for Local Taxes - City or County 6 DD Form 2058 State of Legal Residence Certificate APPENDIX NO. 1 REGULATIONS - WITHHOLDING OF DISTRICT OF COLUMBIA, STATE, CITY, AND COUNTY INCOME OR EMPLOYMENT TAXES BY FEDERAL AGENCIES 31 CFR 215 Subpart A - General Information Sec. 215.1 Scope of Part. 215.2 Definitions. Subpart B - Procedures 215.3 Relationship of Standard Agreement to existing agreements. 215.4 Procedures for entering into a Standard Agreement. 215.5 Procedures for an agreement other than a Standard Agreement. Subpart C - Standard Agreement 215.6 In general. 215.7 Parties. 215.8 Compliance by agencies. 215.9 Withholding certificates. 215.10 Change of legal residence by members of the Armed Forces. 215.11 Agency withholding procedures. 215.12 Miscellaneous provisions. 215.13 Supersession, amendment, and termination provisions. Authority: 5 U.S.C. 5516, 5517, and 5520 and section 4 of Executive Order 11997, June 22, 1977 (42 FR 31759). Source: 42 FR 33731, July 1, 1977, unless otherwise noted. Subpart A - General Information 215.1 Scope of part. This Part relates to agreements between the Secretary of the Treasury and States (including the District of Columbia), cities, or counties for withholding of State, city, or county income or employment taxes from the compensation of civilian Federal employees, and for the withholding of State income taxes from the compensation of members of the Armed Forces. Subpart A contains general information and definitions. Subpart B prescribes the procedures to be followed in entering into an agreement for the withholding of State, city, or county income or employment taxes. Subpart C is the Standard Agreement which the Secretary will enter into with any State, city, or county that qualifies to have tax withheld. Requests for deviations from this Standard Agreement will be agreed to by the Secretary only if the State, city, or county's unique circumstances require it. 215.2 Definitions. As used in this Part: (a) "Agency" means each of the executive agencies and military departments (as defined in 5 U.S.C. 105 and 102, respectively) and the United States Postal Service; and in addition, for city or county withholding purposes only, all elements of the judicial branch. (b) "City" means any unit of general local government (1) which (A) is classified as a municipality by the United States Bureau of the Census, or (B) is a town or township which, in the determination of the Secretary of the Treasury, (i) possesses powers and performs functions comparable to those associated with municipalities,<%0> (ii) is closely settled, and contains within its boundaries no incorporated places as defined by the United States Bureau of the Census; and (2) within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government. (c) "City income or employment taxes" means any form of tax for which, under a city ordinance, (1) collection is provided by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to a designated city officer, department, or instrumentality; and (2) the duty to withhold generally is imposed on the payment of compensation earned within the jurisdiction of the city in the case of employees whose regular place of employment is within such jurisdiction. Whether the tax is described as an income, wage, payroll, earnings, occupational license, or otherwise is immaterial. (d) "Compensation" as applied to employees of an agency and members of the Armed Forces means "wages" as defined in 26 U.S.C. 3401(a) and regulations issued thereunder. (e) "County" means any unit of local general Government which is classified as a county by the Bureau of the Census and within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government. (f) "County income or employment taxes" means any form of tax for which, under a county ordinance, (1) collection is provided by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to a designated county officer, department, or instrumentality; and (2) the duty to withhold generally is imposed on the payment of compensation earned within the jurisdiction of the county in the case of employees whose regular place of employment is within such jurisdiction. Whether the tax is described as an income, wage, payroll, earnings, occupational license, or otherwise is immaterial. (g) "District of Columbia income tax" means the income tax imposed under 47 District of Columbia Code, Chapter 15, Subchapter II. (h) (1) "Employees" for the purpose of State income tax withholding means all employees of an agency, other than members of the Armed Forces. For city and county income or employment tax withholding it means: (i) Employees of an agency, (ii) Members of the National Guard, participating in exercises or performing duty under 32 U.S.C. 502; or (iii) Members of the Ready Reserve, participating in scheduled drills or training periods, or serving on active duty for training under 10 U.S.C. 270(a). The term does not include retired personnel, pensioners, annuitants, or similar beneficiaries of the Federal Government who are not performing active civilian service or persons receiving remuneration for services on a contract-fee basis. (2) "Employees" for purposes of District of Columbia income tax withholding means employees as defined in 47 District of Columbia Code 1551c(z). (i) "Members of the Armed Forces" means all individuals in active duty status (as defined in 10 U.S.C. 101(22)) in regular and reserve components of the Army, Navy, Air Force, Marine Corps, and Coast Guard, while participating in exercises or performing duty under 32 U.S.C. 502, and members of the Ready Reserve while participating in scheduled drills or training periods or serving on active duty for training under 10 U.S.C. 270(a). (j) "Ordinance" means an ordinance, order, resolution, or similar instrument which is duly adopted and approved by a city or county in accordance with the constitution and statutes of the State in which it is located and which has the force of law within such city or county. (k) "Regular place of Federal employment" means the official duty station, or other place, where an employee actually and normally (i.e., other than in a travel or temporary duty status) performs services, irrespective of residence. (l) "Secretary" means Secretary of the Treasury and Fiscal Assistant Secretary or his designee. (m) "State" means a State of the United States or the District of Columbia, unless otherwise specified. (n) "State income tax" means any form of tax for which, under a State statute, (1) collection is provided, either by imposing on employers generally the duty of withholding sums from the compensation of employees and making returns of such sums to the State or by granting to employers generally the authority to withhold sums from the compensation of employees, if any employee voluntarily elects to have such sums withheld; and (2) the duty to withhold generally is imposed, or the authority to withhold generally is granted, with respect to the compensation of employees who are residents of such State. Subpart B - Procedures 215.3 Relationship of Standard Agreement to existing agreements. (a) Subpart C of this Part is the Standard Agreement which the Secretary will enter into with a State, city, or county. This Standard Agreement replaces all prior agreements between the Secretary and the State or city covering the withholding of income or employment taxes from the compensation of Federal employees. The Standard Agreement is essentially the same as the prior agreements. A State or city which currently is a party to an agreement with the Secretary covering the withholding of income or employment taxes from the compensation of Federal employees does not need to apply for a new agreement under this Part. A State or city currently a party to an agreement will be presumed to have consented to be bound by the terms of the Standard Agreement (Subpart C). If a State or city that is currently a party does not want to be bound by the Standard Agreement, it shall notify the Fiscal Assistant Secretary, Department of the Treasury, Washington, DC 20220, in writing over the signature of an officer authorized to bind contractually the State or city within 90 days of the effective date of this Part. The procedures of section 215.5 shall be followed by a State or city which proposes to be bound by an agreement other than the Standard Agreement. (b) The effective date for the replacement of existing State or city Standard Agreements by the Standard Agreement appearing as Subpart C of this Part is the effective date of this Part. For current other-than-Standard Agreements it is 120 days after the effective date of this Part unless an earlier effective date is specifically agreed to or a new agreement, which is other than the Standard Agreement of Subpart C, is entered into as provided in this Subpart. 215.4 Procedures for entering into a Standard Agreement. (a) A State, city, or county which does not have an existing agreement and wishes to enter into a Standard Agreement shall indicate in a letter its agreement to be bound by the provisions of Subpart C. The letter shall be addressed to the Fiscal Assistant Secretary, Department of the Treasury, Washington, DC 20220, and be signed by an officer authorized to bind contractually the State, city, or county. Copies of all applicable State laws, city or county ordinances, and implementing regulations, instructions, and forms shall be enclosed. The letter shall also indicate the title and address of the official whom Federal agencies may contact to obtain forms and other information necessary to implement withholding. (b) Within 120 days of the receipt of the letter from the State, city, or county official, the Fiscal Assistant Secretary will, by letter, notify the State, city, or county (1) that the Standard Agreement has been entered into as of the date of the Fiscal Assistant Secretary's letter or (2) that an agreement cannot be entered into with the State, city, or county and the reasons for that determination. The withholding of the State, city, or county income or employment tax shall commence within 90 days after the effective date of the agreement. 215.5 Procedures for an agreement other than a Standard Agreement. (a) If a State, city or county proposes an agreement that varies from the Standard Agreement, the State, city, or county shall follow the procedure in section 215.4(a), except that its letter shall indicate which provisions of the Standard Agreement are not acceptable and the basis therefor, and propose substitute provisions. (b) Within 60 days of the receipt of the letter from the State, city, or county official, the Fiscal Assistant Secretary will notify the State, city, or county which substitute provisions may be included in the agreement.The State, city, or county shall, by letter, notify the Fiscal Assistant Secretary if it accepts such an agreement. When accepted by the State, city, or county, the effective date of that agreement shall be the date such acceptance letter is received by the Fiscal Assistant Secretary. The withholding of the State, city, or county income or employment tax shall commence within 90 days after the effective date of the agreement. Subpart C - Standard Agreement 215.6 In general. This Subpart is the text of the Standard Agreement between the Secretary and the State, city, or county. The terms used in this agreement are defined in section 215.2 of this Part. 215.7 Parties. The parties to this agreement are the Secretary and the State, city, or county which has entered into this agreement pursuant to 5 U.S.C. 5516, 5517, or 5520 and Executive Order No. 11997 (June 22, 1977). 215.8 Compliance by agencies. (a) In the case of an agreement with a State, the head of each agency is required to withhold State income taxes from the compensation of (1) employees of such agency who are subject to such taxes and whose regular place of Federal employment is within the State and (2) members of the Armed Forces who are subject to such taxes and who are legal residents of the State. The foregoing is also applicable with respect to a State whose statutes permit but do not require withholding by employers, provided the employee voluntarily elects to have such tax withheld. (b) In the case of an agreement with a city or county, the head of each agency is required to withhold city or county income or employment taxes from the compensation of any employee of the agency who is subject to the tax and (1) whose regular place of Federal employment is within the city or county or (2) is a resident of the city or county. (c) In withholding taxes, the head of each agency, except as otherwise provided in this agreement, shall comply with the withholding provisions of the State, city, or county income or employment tax statute, regulations, procedural instructions, and reciprocal agreements related thereto. (44 FR 4670, January 23, 1979) 215.9 Withholding certificates. Each agency may require employees or members of the Armed Forces under its jurisdiction to complete a withholding certificate in order to calculate the amount to be withheld. The agency shall use the withholding certificate which the State, city, or county has prescribed. Where the State, city, or county has not prescribed a certificate, the agency may use a certificate approved by the Department of the Treasury. The agency may rely on the information in the certificate. Copies of completed certificates shall be provided to the taxing authority by agencies upon request. 215.10 Change of legal residence by members of the Armed Forces. (a) In determining the legal residence of a member of the Armed Forces for tax withholding purposes, the head of an agency at all times may rely on the agency's current records, which may include a certificate of legal residence. The form of the certificate of legal residence shall be approved by the Department of the Treasury. A change of legal residence of a member of the Armed Forces shall become effective for tax withholding purposes only after a member of the Armed Forces completes a certificate indicating a new legal residence and delivers it to the agency. (b) Heads of agencies shall notify the State of prior legal residence of the member of the Armed Forces involved on a monthly basis concerning the change of the member's legal residence. The notification shall include the name, social security number, current mailing address, and the new legal residence of such member of the Armed Forces. The effective date of the change in legal residence shall also be included in the notification. 215.11 Agency withholding procedures. (a) State income tax shall be withheld only on the entire compensation of Federal employees and members of the Armed Forces. Nonresident employees, who under the State income tax law are required to allocate at least three-fourths of their compensation to the State, shall be subject to withholding on their entire compensation. Nonresident employees, who under the State income tax law are required to allocate less than three-fourths of their compensation to the State, may elect to (1) have State income tax withheld on their entire compensation or (2) have no income tax withheld on their compensation. (b) In calculating the amount to be withheld from an employee's or a member's compensation, each agency shall use the method prescribed by the State income tax statute or city or county ordinance or a method which produces approximately the tax required to be withheld (1) by the State income tax statute from the compensation of each employee or member of the Armed Forces subject to such income tax or (2) by the city or county ordinance from the compensation of each employee subject to such income or employment tax. (c) Where it is the practice of a Federal agency under Federal tax withholding procedure to make returns and payment of the tax on an estimated basis, subject to later adjustment based on audited figures, this practice may be applied with respect to the State, city, or county income or employment tax where the agency has made appropriate arrangements with the State, city, or county income tax authorities. (d) Copies of Federal Form W-2: Wage and Tax Statement, may be used for reporting withheld taxes to the State, city, or county. (e) Withholding shall not be required on wages earned but unpaid at the date of an employee's or member's death. (f) Withholding of District of Columbia income tax shall not apply to pay of employees who are not residents of the District of Columbia as defined in 47 District of Columbia Code, Chapter 15, Subchapter II. 215.12 Miscellaneous provisions. Nothing in this agreement shall be deemed: (a) To require collection by agencies of the United States of delinquent tax liabilities of Federal employees or members of the Armed Forces, or (b) To consent to the application of any provision of law of the State, city, or county which has the effect of (1) imposing more burdensome requirements upon the United States than it imposes on other employers or (2) subjecting the United States or any of its officers or employees to any penalty or liability, or (c) To consent to procedures for withholding, filing of returns, and payment of the withheld taxes to a State, city, or county that do not conform to the usual fiscal practices of agencies, or (d) To permit the withholding of a city or county tax from the pay of a Federal employee who is not a resident of, or whose regular place of Federal employment is not within, the State in which the city or county is located unless the employee consents to the withholding, or (e) To permit the withholding of city or county income or employment taxes from the pay of members of the Armed Forces of the United States, or (f) To allow agencies to accept compensation from a State, city, or county for services performed in withholding of State or city or county income or employment taxes. (44 FR 4670, January 23, 1979) 215.13 Supersession, amendment, and termination provisions. (a) This agreement supersedes any prior agreement between the Secretary of the Treasury and a State or city pursuant to 5 U.S.C. 5516, 5517, or 5520. (b) This agreement shall be subject to any amendment of 5 U.S.C. 5516, 5517, 5520 or Executive Order No. 11997, and any rules and regulations issued pursuant to them and amendments thereto. (c) This agreement may be terminated as to a specific State or city or county which is a party to this agreement by providing written notice to that effect to the Secretary at least 90 days prior to the proposed termination. LIST OF STATES WITH WHICH THE SECRETARY OF THE TREASURY HAS WITHHOLDING AGREEMENTS, EFFECTIVE DATES, AND ADDRESSES OF TAX OFFICES STATE EFFECTIVE TAX OFFICE DATE Alabama July 1, 1977 Department of Revenue Income Tax Division Montgomery 36102 Arizona October 29, 1977 State Tax Commission Phoenix 85007 Arkansas July 1, 1977 Department of Finance and Administration Little Rock 72203 California July 1, 1977 Franchise Tax Board Sacramento 95876 Colorado July 1, 1977 Department of Revenue Denver 80203 Connecticut October 22, 1991 Taxpayer Services Department of Revenue 92 Farmington Avenue Hartford 06105 Delaware July 1, 1977 Department of Finance 601 Delaware Avenue Wilmington 19899 District of July 1, 1977 Department of Finance and Columbia Revenue Municipal Center Washington 20001 Georgia July 1, 1977 Department of Revenue Trinity Washington Building Atlanta 30334 *Hawaii September 3, 1977 Department of Taxation Honolulu 96813 Idaho July 1, 1977 State Tax Commission P.O. Box 36 Boise 83722 Illinois July 1, 1977 Department of Revenue Springfield 62708 Indiana July 1, 1977 Gross Income Tax Division Indianapolis 46204 Iowa July 1, 1977 Department of Revenue Lucas State Office Building Des Moines 50319 Kansas July 1, 1977 Department of Revenue Topeka 66625 Kentucky July 1, 1977 Department of Revenue Frankfort 40601 Louisiana July 1, 1977 Department of Revenue Baton Rouge 70821 Maine July 1, 1977 Bureau of Taxation Augusta 04330 Maryland July 1, 1977 Comptroller of the Treasury Income Tax Division Annapolis 21404 Massachusetts July 1, 1977 Department of Corporations and Taxation Boston 02133 Michigan July 1, 1977 Department of Management and Budget Lansing 48913 Minnesota July 1, 1977 Department of Revenue Centennial Office Building Saint Paul 55145 Mississippi July 1, 1977 State Tax Commission P.O. Box 960 Jackson 39205 Missouri July 1, 1977 Department of Revenue Jefferson City 65101 Montana October 29, 1977 Department of Revenue Mitchell Building Helena 59620 Nebraska July 1, 1977 Department of Revenue Lincoln 68509 New Jersey July 1, 1977 Department of the Treasury State House Trenton 08625 New Mexico July 1, 1977 Department of Finance and Administration State Capitol Santa Fe 87501 New York July 1, 1977 Department of Taxation and Finance State Campus Albany 12227 North Carolina July 1, 1977 Department of Revenue Raleigh 27640 North Dakota July 29, 1987 State Tax Commission Bismarck 58505 Ohio July 1, 1977 Department of Taxation Columbus 43215 Oklahoma July 1, 1977 State Tax Commission Oklahoma City 73105 *Oregon August 22, 1977 Department of Revenue Salem 97310 Pennsylvania July 1, 1977 Department of Revenue Harrisburg 17127 Puerto Rico November 29, 1988 Director, Income Tax Division Treasury Department Box S-4515 San Juan 00901 Rhode Island July 1, 1977 Department of Administration State House Providence 02903 South Carolina July 1, 1977 State Tax Commission Columbia 29201 Utah July 1, 1977 Department of Finance 147 State Capitol Salt Lake City 84114 Vermont July 1, 1977 Executive Department State of Vermont Montpelier 05602 Virginia July 1, 1977 Department of Taxation Richmond 23215 West Virginia July 1, 1977 State Tax Department Charleston 25305 Wisconsin July 1, 1977 Department of Revenue Madison 53702 * Other-Than-Standard Agreement (see Appendix 4 to this chapter). LIST OF CITIES AND COUNTIES WITH WHICH THE SECRETARY OF THE TREASURY HAS WITHHOLDING AGREEMENTS, EFFECTIVE DATES, TYPES OF TAX, AND ADDRESSES OF TAX OFFICES CITY OR COUNTY AND EFFECTIVE DATE OF AGREEMENT TYPE OF TAX TAX OFFICE [body] ALABAMA Birmingham Occupation License Administrator July 1, 1977 License Tax City Hall Birmingham, AL 35203 Gadsden Occupational Revenue Department October 30, 1990 License Fee P.O. Box 267 Gadsden,AL 35999-1101 Jefferson County Occupation Department of Revenue January 12, 1988 Tax 100-A Court House Birmingham, AL 35263-0069 COLORADO Denver (City and Occupation Manager of Revenue County) Privilege Tax Sales and Occupation May 15, 1980 Tax Section 144 W. Colfax Ave. Room 303 Denver, CO 80202 DELAWARE Wilmington Earned Income Division Manager July 1, 1977 Tax Earned Income Tax Public Building Room 279 Wilmington, DE 19899 KENTUCKY Boone County 1. Occupation Boone County License January 16 1981 Fee Inspector November 7, 1989 2. Occupation Finance Department Fee For P.O. Box 46 Public Service Burlington, KY 41005 Programs for Senior Citizens, etc. Covington City Earnings Director of Finance July 1, 1977 Tax Room 205 301 Court St. Covington, KY 41011 Frankfort Occupation Director of Finance June 25, 1987 License Fee P.O. Box 697 Frankfort, KY 40602 Florence City Payroll City of Florence February 11, 1988 Tax P.O. Box 457 7431 U.S. Highway 42 Florence, KY 41042 Jefferson County Occupation Secretary-Treasurer September 3, 1980 License Tax Commissioners of the Sinking Fund 617 W. Jefferson St. Louisville, KY 40202 Kenton County Occupation Administrative Assistant June 2, 1981 Tax to the Fiscal Court Ninth Floor City-County Building Covington, KY 41011 Lexington Occupation Director July 1, 1977 License Fee Division of Tax Collection Lexington-Fayette Urban County Government Municipal Building Lexington, KY 40507 Louisville Occupation Secretary-Treasurer September 3, 1980 License Tax Commissioners of the Sinking Fund 617 W. Jefferson St. Louisville, KY 40202 Madison County Occupation Amick & Helm CPAs October 5, 1987 License Tax 200 N. Third St. Richmond, KY 40475 McCracken County Occupation County Tax February 19, 1987 Privilege Tax Administrator Courthouse Paducah, KY 42001 Owensboro Occupational Director of Finance March 3, 1992 License Fee P.O. Box 847 Owensboro, KY 42302 Richmond City License Director of Finance July 1, 1977 Fee Box 68 Richmond, KY 40475 MICHIGAN Battle Creek City Income Income Tax Director July 1, 1977 Tax P.O. Box 1657 24 Capital Ave., NE. Battle Creek, MI 49017 Detroit City Income Income Tax Director July 1, 1977 Tax Income Tax Division Finance Department 512 City-County Building Detroit, MI 48226 Flint City Income Income Tax Administrator July 1, 1977 Tax Treasury Division 1101 S. Saginaw St. Flint, MI 48502 Grand Rapids City Income Income Tax Administrator July 1, 1977 Tax City Hall Grand Rapids, MI 49502 Lansing City Income Administrator July 1, 1977 Tax City Income Tax 208 E. Michigan Ave. Lansing, MI 48933 Pontiac City Income Income Tax Administrator July 1, 1977 Tax 450 Wide Track Dr. E. Pontiac, MI 48058 Saginaw City Income Administrator July 1, 1977 Tax Income Tax Division Saginaw, MI 48601 MISSOURI Kansas City Earnings and Commissioner of Revenue July 1, 1977 Profits Tax Second Floor City Hall Kansas City, MO 64106 St. Louis City Income Collector of Revenue July 1, 1977 Tax City Hall St. Louis, MO 63103 NEW YORK New York Personal Director July 1, 1977 Income and Finance Earnings Administration Tax 139 Centre St. New York, NY 10013 OHIO Akron City Income Tax Commissioner July 1, 1977 Tax Division of Taxation 7 W. Exchange St. Akron, OH 44308 Brecksville City Income Tax Administrator July 1, 1977 Tax Regional Income Tax Agency 5805 Valley Belt Rd. Independence, OH 44131 Canton City Income Income Tax Director July 1, 1977 Tax City of Canton P.O. Box 8876 Canton, OH 44711 Cincinnati City Income Tax Commissioner July 1, 1977 Tax Income Tax Bureau 420 Plum St. Second Floor Cincinnati, OH 45202 Cleveland Municipal Tax Administrator July 1, 1977 Income Tax Central Collection Agency 1701 Lakeside Ave. Cleveland, OH 44114 Columbus City Income Income Tax Division July 1, 1977 Tax 90 W. Broad St. City Hall Columbus, OH 43215 Dayton City Income Superintendent of July 1, 1977 Tax Taxation Division of Taxation 101 W. Third St. Dayton, OH 45401 Heath City Income Tax Commissioner July 1, 1977 Tax Income Tax Bureau 1287 Hebron Rd. Heath, OH 43055 Kettering City Income Superintendent of July 1, 1977 Tax Taxation Division of Taxation 101 W. Third St. Dayton, OH 45401 Mansfield City Income Income Tax Division July 1, 1977 Tax City Building Room 30 P.O. Box 577 Mansfield, OH 44901 Newark City Income Division of Income Tax June 9, 1989 Tax 40 W. Main St. Newark, OH 43055 Oberlin City Income City Auditor July 1, 1977 Tax 93 S. Main St. Oberlin, OH 44074 Sharonville City Income Tax Commissioner July 1, 1977 Tax 10900 Reading Rd. Sharonville, OH 45241 Springfield Earned Income Income Tax Bureau July 1, 1977 Tax City Building Springfield, OH 45501 Toledo City Income Commissioner of Taxation July 1, 1977 Tax Division of Taxation 321 Superior St. Toledo, OH 43604 Whitehall City Income Tax Commissioner July 1, 1977 Tax 360 S. Yearling Rd. Whitehall, OH 43213 Youngstown City Income Finance Department July 1, 1977 Tax City Hall Youngstown, OH 44503 PENNSYLVANIA Caln Township 1. Earned Earned Income Tax July 1, 1977 Income Tax Collector Central Tax Bureau of Pa., Inc. 205 Barley Sheaf Rd. Thorndale, PA 19372 2. Occupation Tax Collector Privilege Tax Caln Township Municipal Building Municipal Dr. Thorndale, PA 19372 Coolbaugh Township 1. Earned H.A. Berkheimer October 1, 1986 Income Tax Associates 2. Occupation 50 N. Seventh St. Privilege Tax Bangor, PA 18013 Erie 1. City Income Income Tax Collector July 1, 1977 Tax Deputy City Treasurer 2. Occupation Municipal Building Privilege Tax Room 107 Erie, PA 16501 Greene Township Earned Income Executive Directory April 1, 1983 and Net Chambersburg Area Wage Profits Tax Board 140 S. Fourth St. Chambersburg, PA 17201 Fairview Township 1. Earned The West Shore Tax July 1, 1977 Income Tax Bureau 2. Occupation P.O. Box 656 Privilege Tax 1110 Fernwood Ave. Camp Hill, PA 17011 Hampden Township 1. Earned The West Shore Tax July 1, 1977 Income Tax Bureau 2. Occupation P.O. Box 656 Privilege Tax 1110 Fernwood Ave. Camp Hill, PA 17011 Hanover Township 1. Earned H.A. Berkheimer December 2, 1985 Income Tax Associates 2. Occupation 50 N. Seventh St. Privilege Tax Bangor, PA 18013 Harrisburg 1. Earned Executive Director July 1, 1977 Income Tax Capital Area Tax 2. Occupation Collection Bureau Privilege Tax 2301-2303 N. Third St. Harrisburg, PA 17110 Horsham Township Occupation Tax Receiver December 20, 1985 Privilege Tax Horsham Township 1025 Horsham Rd. Horsham, PA 19044 Lancaster 1. Earned Manager July 1, 1977 Income Tax Lancaster County Tax Collection Bureau 230 E. Orange St. Lancaster, PA 17602 2. Occupation Tax Manager Privilege Tax Treasurer's Office 1 Marion Ct. Lancaster, PA 17604 Marshall Township Occupation Tax Collector March 8, 1982 Privilege Tax Marshall Township 5165 Wexford Run Rd. Wexford, PA 15090 North Middleton 1. Earned Administrator Township Income Tax Carlisle Area Tax Bureau August 9, 1977 2. Occupation 16 W. Pomfret St. December 19, 1977 Privilege Tax Carlisle, PA 17013 Philadelphia City Wage Tax Revenue Commissioner July 1, 1977 Department of Collections Municipal Service Building John F. Kennedy Blvd. Philadelphia, PA 19107 Pittsburgh 1. Occupation Tax Tax Supervisor July 1, 1977 2. Municipal Tax Department of City Treasurer City-County Building 414 Grant St. Pittsburgh, PA 15219 Plains Township 1. Earned Don Wilkinson Agency Inc. July 1, 1977 Income Tax 142 Welles St. 2. Occupation Wilkes Barre, PA 18704- Privilege Tax 4949 Reading 1. Earned Administrator July 1, 1977 Income Tax City of Reading 2. Occupation Eighth and Washington Privilege Tax Streets Reading, PA 19601 Scranton 1. Earned Collector of Taxes July 1, 1977 Income Tax 200 Adams Ave. 2. Occupation Scranton, PA 18503 Privilege Tax So.Lebanon Township 1.Occupation Township Manager July 1, 1977 Privilege South Lebanon Township Tax Building September 8, 1980 2. Earned 1800 S. Fifth Ave. Income Tax Lebanon, PA 17042 South Park Township 1.Earned IncomePennsylvania Municipal September 8, 1980 Tax Services Co. 6461 Library Rd. Library, PA 15129 Warminster Township 1. Occupation Occupation Privilege Tax January 15, 1979 Privilege Tax Collector Township Building Henry & Gibson Aves. Warminster, PA 18974 May 9, 1990 2. Earned Central Tax Bureau Income Tax of Penna Inc. Stony Creek Office Center, Building 3 151 W. Marshall St. Norristown, PA 19401 Wilkes Barre 1. Earned H.A. Berkheimer July 1, 1977 Income Tax Associates October 2, 1985 2. Occupation Wilkes Barre, PA 18702 Privilege Tax York Earned Income York Area Earned January 5, 1988 Tax Income Tax Bureau 1415 North Duke Street P.O. Box 1627 York, PA 17405 LIST OF STATES, CITIES, AND COUNTIES WITH OTHER-THAN-STANDARD AGREEMENTS The following list includes the variances from the Standard Agreement* for each State, city, or county that has entered into an Other-Than-Standard Agreement: - State of Hawaii Add the following sentence to 31 CFR 215.8(a): Notwithstanding the definition of the term "compensation" as defined in Section 215.2(d), the term "compensation" as used herein shall also include the cost-of-living allowance referred to in Section 207 of the Independent Offices Appropriations Act, 1949, as amended, 62 Stat. 194 and 1205. - State of Oregon Delete 31 CFR 215.11(a) from the Standard Agreement. *See Appendix 1 to this chapter for text of Standard Agreement. [graphic] FMS Form 7311 [graphic] DD Form 2058