[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(o)-1]

[Page 244]
 
                       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(o)-1  Extension of withholding to supplemental unemployment 
compensation benefits.

    (a) In general. Withholding of income tax is required under section 
3402(o) with respect to payments of supplemental unemployment 
compensation benefits made after December 31, 1970, which are treated 
under paragraph (b)(14) of Sec. 31.3401(a)-1 as if they were wages.
    (b) Withholding exemption certificates. For purposes of section 
3402(f) (2) and (3) and the regulations thereunder (relating to 
withholding exemption certificates), in the case of supplemental 
unemployment compensation benefits an employment relationship shall be 
considered to commence with either the date on which such benefits begin 
to accrue or January 1, 1971, whichever is later, and the withholding 
exemption certificate furnished the employer with respect to such 
commencement of employment shall be considered the first certificate 
furnished the employer. The withholding exemption certificate furnished 
by the employee to his former employer (with whom his employment has 
been involuntarily terminated, within the meaning of paragraph 
(b)(14)(ii) of Sec. 31.3401(a)-1) shall be treated as meeting the 
requirements of section 3402(f)(2)(A) and the regulations thereunder if 
such former employer furnishes such certificate to the employee's 
current employer, as defined in paragraph (g) of Sec. 31.340(d)-1, or 
if such former employer is the agent of such current employer with 
respect to the employee's withholding exemption certificate. However, 
the preceding sentence shall not be applicable if such employee 
furnishes a new withholding exemption certificate to such current 
employer (or his agent), provided that such withholding exemption 
certificate meets the requirements of section 3402(f)(2)(A) and the 
regulations thereunder. See the definitions of payroll period in 
paragraph (c) of Sec. 31.3401(b)-1 and of employee in paragraph (g) of 
Sec. 31.3401(c)-1.

[T.D. 7068, 35 FR 17329, Nov. 11, 1970, as amended by T.D. 7803, 47 FR 
3546, Jan. 26, 1982]