(1) Notwithstanding any other provision of this chapter, an employer is not required to deduct and withhold any tax under this chapter upon a payment of wages to an employee if there is in effect with respect to such payment a withholding exemption certificate (in such form and containing such other information as the commission may prescribe) furnished to the employer by the employee, certifying that the employee:

1. (a) incurred no liability for income tax imposed under this chapter for his immediately preceding taxable year; and
2. (b) anticipates that he will incur no liability for income tax imposed under this chapter for his current taxable year.