The new withholding tables will tell employers and payroll administrators how much less in federal income taxes to
withhold from workers' wages.
counterpart and is intended to equal withholding tax that a Canadian corporation would
withhold from dividends paid to foreign shareholders.
The successor must keep the transferred Forms W-4 and W-5 on file, and deduct and
withhold from the wages it pays to the acquired employees according to the information supplied on those forms, until an employee submits a revised form.
Penalties for failure to
withhold from eligible rollover distributions made after Dec.
3405(b)(2) requires the payor of any nonperiodic distribution to
withhold from such distribution 10% for distributions that are not qualified total distributions, and an amount determined under IRS tables for qualified total distributions.