WILLIAM DONALD SCHAEFER, Governor

Ch. 2

2. IF THERE IS A SEPARATE TABLE FOR
NONRESIDENTS, AN ADJUSTMENT IS MADE TO ALLOW THE EXHAUSTION OF
EXEMPTIONS FOR A NONRESIDENT BEFORE ANY INCOME TAX IS WITHHELD.

(3) THE TOTAL AMOUNTS REQUIRED UNDER THE TABLES TO BE
WITHHELD DURING A TAXABLE YEAR SHALL APPROXIMATE, AS CLOSELY AS
POSSIBLE, THE TOTAL STATE INCOME TAX DUE ON THE WAGES FOR THE
YEAR.

(D)  INCOME TAX PERCENTAGE WITHHOLDING SCHEDULE.

(1)  THE COMPTROLLER MAY PREPARE INCOME TAX PERCENTAGE
WITHHOLDING SCHEDULES THAT SHOW THE PERCENT OF INCOME TAX TO BE
WITHHELD FROM WAGES. THE COMPTROLLER MAY PREPARE SEPARATE
SCHEDULES FOR RESIDENTS AND NONRESIDENTS.

(2)  THE OPTIONAL PERCENTAGE WITHHOLDING SCHEDULES
SHALL PROVIDE FOR:

(I)  WAGES FOR EACH WITHHOLDING PERIOD ALLOWABLE
UNDER § 10-809 OF THIS ARTICLE; AND

(II)  THE PERCENT OF STATE INCOME TAX REQUIRED
TO BE WITHHELD FOR THE WITHHOLDING PERIOD, AFTER:

1.  AN ADJUSTMENT IS MADE FOR THE
EXEMPTIONS FOR THE PERIOD; AND

2.   IF THERE IS A SEPARATE SCHEDULE FOR
NONRESIDENTS, AN ADJUSTMENT IS MADE TO ALLOW THE EXHAUSTION OF
EXEMPTIONS FOR A NONRESIDENT BEFORE ANY INCOME TAX IS WITHHELD.

(3)  THE TOTAL PERCENTAGES REQUIRED UNDER THE
SCHEDULES TO BE WITHHELD DURING A TAXABLE YEAR SHALL APPROXIMATE,
AS CLOSELY AS POSSIBLE, THE STATE INCOME TAX DUE ON THE WAGES FOR
THE YEAR.

(E)  USE OF TABLES OR SCHEDULES.

AT THE OPTION OF THE EMPLOYER, WITHHOLDINGS MAY BE MADE
USING EITHER THE WITHHOLDING TABLES OR THE PERCENTAGE WITHHOLDING
SCHEDULE.

REVISOR'S NOTE: Subsection (a)(1) of this section is new
language used as the standard introductory language to
a definition section.

Subsection (a)(2), (3), and (4) of this section is new
language added to incorporate, by reference, the
definitions of the terms "nonresident", "resident",
and "wages", respectively.

Subsections (b), (c), (d)(1) and (2)(i)2., and (e) of
this section are new language derived without
substantive change from former Art. 81, § 312(e) and

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