[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR31.3402(i)-1]

[Page 235-236]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents
 
              Subpart E_Collection of Income Tax at Source
 
Sec. 31.3402(i)-1  Additional withholding.

    (a) In addition to the tax required to be deducted and withheld in 
accordance with the provisions of section 3402, the employer and 
employee may agree that an additional amount shall be withheld from the 
employee's wages. The agreement shall be in writing and shall be in such 
form as the employer may prescribe. The agreement shall be effective for 
such period as the employer and employee mutually agree upon. However, 
unless the agreement provides for an earlier termination, either the 
employer or the employee, by furnishing a written notice to the other, 
may terminate the agreement effective with respect to the first payment 
of wages made on or after the first ``status determination date'' (see 
paragraph (d) of Sec. 31.3402(f)(3)-1) which occurs at least 30 days 
after the date on which such notice if furnished.
    (b) The amount deducted and withheld pursuant to an agreement 
between the employer and employee shall be considered as tax required to 
be deducted and withheld under section 3402. All provisions of law and 
regulations applicable with respect to the tax required to be deducted 
and withheld under section 3402 shall be applicable with respect to any 
amount deducted and withheld pursuant to the agreement.
    (c) This section is applicable only to agreements made before 
October 1,

[[Page 236]]

1981. Any such agreement shall remain in effect in accordance with 
paragraph (a). See Sec. 31.3402 (i)-2 for rules relating to increases 
in withholding after September 30, 1981.

(Secs. 3402(i) and (m) and 7805 of the Internal Revenue Code of 1954 (26 
U.S.C. 3402 (i) and (m), 95 Stat. 172, 184; 26 U.S.C. 7805, 68A Stat. 
917))

[T.D. 65l6, 25 FR 13108, Dec. 20, 1960, as amended by T.D. 7065, 35 FR 
16540, Oct. 23, 1970; T.D. 7915, 48 FR 44074, Sept. 27, 1983]