[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR215.8]

[Page 64]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 215--WITHHOLDING OF DISTRICT OF COLUMBIA, STATE, CITY AND COUNTY INCOME OR EMPLOYMENT TAXES BY FEDERAL AGENCIES--Table of Contents
 
                      Subpart C--Standard Agreement
 
Sec. 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.

(Pub. L. 95-365, 92 Stat. 599 (5 U.S.C. 5520))

[42 FR 33731, July 1, 1977, as amended at 44 FR 4670, Jan. 23, 1979]