US Internal Revenue Code Section 3402 Income Tax Withholding at Source (26 USC 3402) 3402p-voluntary-withholding: Withhold on specified federal payments and unemployment compensation at the request of the payee at the permitted percentages, and on other payments under voluntary agreements

What does 3402p-voluntary-withholding require?

Where a request is in effect, a specified federal payment (social security benefits, certain crop insurance proceeds and Commodity Credit Corporation loans, and other federal-law payments the Secretary names) is treated as wages and withheld at the percentage the payee specified from the permitted set (seven per cent, the rates of the three lowest brackets, or others the regulations allow); unemployment compensation is withheld at ten per cent on request. The Secretary may by regulation permit voluntary withholding on remuneration that is not wages and on other payments where the payer and the payee agree in the prescribed form, in which case the amounts are treated as wages while the agreement is in force. The payee request rules follow those for annuities, and Form W-4V is the vehicle for federal payments.