The new withholding tables will tell employers and payroll administrators how much less in federal income taxes to withhold from
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.