5 U.S.C. § 5517 — Withholding State income taxes

Page 643 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 5517 Editorial Notes AMENDMENTS 2010—Pub. L. 111–145 substituted ‘‘, the Chief Admin- istrative Officer of the House of Representatives, or the Chief of the Capitol Police’’ for ‘‘or the Chief Adminis- trative Officer of the House of Representatives’’. 1996—Pub. L. 104–186 substituted ‘‘Chief Administra- tive Officer’’ for ‘‘Clerk’’. 1970—Pub. L. 91–563 substituted ‘‘jury or witness serv- ice’’ for ‘‘jury service in State courts’’ in section catch- line. Pub. L. 91–563 authorized crediting of amounts re- ceived for jury service in courts in the District of Co- lumbia and in territories or possessions of the United States, included amounts received for service as a wit- ness or when performing official duty under section 6322(b) of this title, and excepted individuals whose pay is disbursed by the Secretary of the Senate or the Clerk of the House of Representatives. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–145 effective as though en- acted as part of section 1018 of Pub. L. 108–7, see section 7(d) of Pub. L. 111–145, set out as a note under section 2107 of this title. § 5516. Withholding District of Columbia income taxes (a) The Secretary of the Treasury, under regu- lations prescribed by the President, shall enter into an agreement with the Mayor of the Dis- trict of Columbia within 120 days of a request for agreement from the Mayor. The agreement shall provide that the head of each agency of the United States shall comply with the require- ments of subchapter II of chapter 15 of title 47, District of Columbia Code, in the case of em- ployees of the agency who are subject to income taxes imposed by that subchapter and whose regular place of employment is within the Dis- trict of Columbia. The agreement may not apply to pay of an employee who is not a resident of the District of Columbia as defined in sub- chapter II of chapter 15 of title 47, District of Columbia Code. In the case of pay for service as a member of the armed forces, the second sen- tence of this subsection shall be applied by sub- stituting ‘‘who are residents of the District of Columbia’’ for ‘‘whose regular place of employ- ment is within the District of Columbia’’. For the purpose of this subsection, ‘‘employee’’ has the meaning given it by section 1551c(z) of title 47, District of Columbia Code. (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 em- ployees to a penalty or liability because of this section. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478; Pub. L. 90–623, § 1(9), Oct. 22, 1968, 82 Stat. 1312; Pub. L. 94–455, title XII, § 1207(a)(2), Oct. 4, 1976, 90 Stat. 1705; Pub. L. 96–54, § 2(a)(30), Aug. 14, 1979, 93 Stat. 383.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. [Uncodified]. Mar. 31, 1956, ch. 154, § 11 ‘‘(k)’’, 70 Stat. 77. Section 2(c) ‘‘(z)’’ of the Act of Mar. 31, 1956, 70 Stat. 68 (section 1551c(z) of title 47, District of Columbia Code) contains a definition of ‘‘employee’’ that is appli- cable to this section. Accordingly, the last sentence of subsection (a) is added to preserve the application of the source law. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. Editorial Notes AMENDMENTS 1979—Subsec. (a). Pub. L. 96–54 substituted ‘‘Mayor’’ for ‘‘Commissioner’’ wherever appearing. 1976—Pub. L. 94–455 struck out ‘‘pay for service as a member of the armed forces, or to’’ after ‘‘The agree- ment may not apply to’’ and inserted provision that in the case of service as a member of the armed forces, the second sentence shall be applied by substituting ‘‘who are residents of the District of Columbia’’ for ‘‘whose regular place of employment is within the District of Columbia’’. 1968—Subsec. (a). Pub. L. 90–623 substituted ‘‘Commis- sioner’’ for ‘‘Commissioners’’ in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–54 effective July 12, 1979, see section 2(b) of Pub. L. 96–54, set out as a note under section 305 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–455, title XII, § 1207(f)(1), Oct. 4, 1976, 90 Stat. 1708, provided that: ‘‘The amendments made by subsection (a) [amending this section and section 5517 of this title] shall apply to wages withheld after the 120-day period following any request for an agreement after the date of the enactment of this Act [Oct. 4, 1976].’’ EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–623 intended to restate without substantive change the law in effect on Oct. 22, 1968, see section 6 of Pub. L. 90–623, set out as a note under section 5334 of this title. § 5517. Withholding State income taxes (a) When a State statute— (1) provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the pay of employ- ees 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 of- ficial. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the State with- holding 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 ap- Page 644 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 5518 plied 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 em- ployees 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 com- monwealth of the United States. (d) For the purpose of this section and sections 5516 and 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 perform- ance of duty under section 502 of title 32, United States Code, by a member of the Na- tional Guard; and (2) participation in scheduled drills or train- ing periods, or service on active duty for train- ing, under section 10147 of title 10, United States Code, by a member of the Ready Re- serve. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478; Pub. L. 94–455, title XII, § 1207(a)(1), (b), (c), Oct. 4, 1976, 90 Stat. 1704, 1705; Pub. L. 100–180, div. A, title V, § 505(1), Dec. 4, 1987, 101 Stat. 1086; Pub. L. 103–337, div. A, title XVI, § 1677(a)(1), Oct. 5, 1994, 108 Stat. 3019; Pub. L. 105–34, title XIV, § 1462(a), Aug. 5, 1997, 111 Stat. 1057.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 84b. July 17, 1952, ch. 940, § 1, 66 Stat. 765. Sept. 23, 1959, Pub. L. 86–371 ‘‘Sec. 1’’, 73 Stat. 653. .................. 5 U.S.C. 84c. July 17, 1952, ch. 940, § 2, 66 Stat. 766. Sept. 23, 1959, Pub. L. 86–371 ‘‘Sec. 2’’, 73 Stat. 653. In subsection (b), the words ‘‘after March 31, 1959’’ are omitted as executed. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. Editorial Notes AMENDMENTS 1997—Subsec. (c). Pub. L. 105–34 substituted ‘‘, territory, possession, or commonwealth’’ for ‘‘or ter- ritory or possession’’. 1994—Subsec. (d)(2). Pub. L. 103–337 substituted ‘‘sec- tion 10147’’ for ‘‘section 270(a)’’. 1987—Subsec. (d). Pub. L. 100–180 struck out ‘‘do not’’ before ‘‘include’’. 1976—Subsec. (a). Pub. L. 94–455, § 1207(a)(1), (c), in- serted in par. (1) provision relating to the grant to em- ployers 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 agree- ment is made’’ for ‘‘whose regular place of Federal em- ployment 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. Subsec. (d). Pub. L. 94–455, § 1207(b), added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Section 1462(b) of Pub. L. 105–34 provided that: ‘‘The amendment made by subsection (a) [amending this sec- tion] shall take effect on January 1, 1998.’’ EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. 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) of Pub. L. 94–455 ap- plicable to wages withheld after the 120-day period fol- lowing any request for an agreement after Oct. 4, 1976, see section 1207(f)(1) of Pub. L. 94–455, set out as a note under section 5516 of this title. Pub. L. 94–455, title XII, § 1207(f)(2), Oct. 4, 1976, 90 Stat. 1708, provided that: ‘‘The amendments made by subsections (b) and (c) [amending this section] shall apply to wages withheld after the 120-day period fol- lowing the date of the enactment of this Act [Oct. 4, 1976].’’ Executive Documents EXECUTIVE ORDER NO. 10407 Ex. Ord. No. 10407, Nov. 7, 1952, 17 F.R. 10132, which re- lated 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. § 5518. Deductions for State retirement systems; National Guard employees When— (1) a State statute provides for the payment of employee contributions to a State employee retirement system or to a State sponsored plan providing retirement, disability, or death benefits, by withholding sums from the pay of State employees and making returns of the sums withheld to State authorities or to the person or organization designated by State au- thorities to receive sums withheld for the pro- gram; and (2) individuals employed by the Army Na- tional Guard and the Air National Guard, ex- cept employees of the National Guard Bureau, are eligible for membership in a State em- ployee retirement system or other State spon- sored plan; the Secretary of Defense, under regulations pre- scribed by the President, shall enter into an agreement with the State within 120 days of a request for agreement from the proper State of- ficial. The agreement shall provide that the De- partment of Defense shall comply with the re- quirements of State statute as to the individ- uals named by paragraph (2) of this section who are eligible for membership in the State em-