Resolution 138
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RES 0 L UTI 0 N
N O. 138
RESOLUTION PROVIDING FOR THE ADMINISTRATION
OF THE CURRENT TAX PAYMENT ACT OF 1943.
WHEREAS, the Current Tax Payment Act of 1943 provides
for the collection of income taxes at the source by employers;
arid,
WH:EREAS, 'lJIWlicipal employees are subject to the tax,
and municipalities are made withholding agents and required to
withhold such tax and to return and pay over the proceeds thereof
to the Federal Government; and,
VffiEREAS, the withholding applies to all wages paid on
or after July I, 1943, except wages paid during the calendar year
1943 with respect to a payroll period beginning before July 1, 1943;
~nd,
WHEREAS, deductions, at the option of the employer, may
be computed on the wages paid at any payroLl period, or upon the
basis of wage bracket withholding tables eet forth in Section 1622
(c) (1) of the Act; NOW, THEREFORE:
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The Common Council of the City of Gilroy does hereby
resolve as follows:
That, beginning with the first payroll period cownencing
after July 1, 1943, and on every payrool thereafter, the City Clerk
is hereby authorized and direct to deduct and withhold from the
wages or salary paid to each officer or employee of the City the
amount required by the Current Tax Payment &ct of 1943 based on
a tax equal to the greater of the following: (1) 20 per centum of
the excess of each payment of such wages over the family status
withholding exemption allowable under subsetion (b) (1) (A) of the
Act, or (2) 3 per centum of the excess of each payment of such
wages over the Victory tax withholding exemption allowable under
subsection (b) (1) (B) of the Act.
The City Clerk 'at the time of making up the payroll or
immediately thereafter, shall transfer fhe monies deducted therefrom
under the provisions of this resolution to the City Treasurer-for
deposit in a separate account in the Bank of America National Trust
& Savings Association, a corporation, Gilroy Branch, Gilroy, California,
designated "+ncome Tax Account, held for the benefit of the Commissioner
of Internal hevenue." The monies accumulated from such withholdings
shall ,be paid by the City Treasurer to the United States Collection
of Internal Hevenue for the District in which this City is located
on or before the last day of the month fOllowing the close of each
guarter of the calendar year, or where the withholding is more than
~lOO.OO a month, within ten days after the close of each calendar
month.
On or before January 31 of each year subsequent to 1943,
or when the last payment of wages is made, if employment is terminated
before the close of the calendar year, the City Clerk shall furnish
to each employee with respect to his employment during the calendar
year, a written statement showing the wages paid to him for the
period covered and the amount of the tax withheld and paid in respect
to such wages. A duplicate of such statement shall be made and ,
filed in accordance with regulations prescribed by the Commissioner
of Internal Revenue. The aforesaid officer shall keep such records
and make such reports to the Commissioner of Internal Revenue of
wages paid and the tax collected and paid with l'espect thereto as
the Commissioner may require and prescribe under the provisions ,of
said Act ."
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The taxes to be withheld and collected under this re'solut:l.on
shall not apply to any taxable year commencing af'ter the date of
cessation of hostilities in the present war and the account established
for the receiving of the tax funds hereunder shall be closed with the
last payment of the funds withheld to the Federal Government.
ADOPTED AND PASSED this 2nd day of
by the following votes:
AUiust
, 1943,
AYES:
Councilmen:George M.Maaon,Nat Heiner,.r.H.Wentworth,
David V.Stout.
NOES:
Councilmen: None
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AI'::SEN T: COUflcllmen: Ge orge A. Mart in, J ame a Batt era by .
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Mayor
Attest:
c].~. @ay;
City Clerk: