Final answer:
Employers must begin to withhold and remit taxes when they receive Form 668-W from the IRS with the first payment of wages after receipt of the form. An employer is responsible for deducting taxes based on the W-4 form filled by the employee at the start of their job.The correct option is A.
Step-by-step explanation:
When an employer (ER) receives Form 668-W, which is a levy by the Internal Revenue Service (IRS), they are required to begin withholding accordingly.
The correct answer is: A. With the first payment of wages after receipt of Form 668-W. An employer must comply with the levy and start to withhold the specified amount from their employee's wages from the first wage payment period after receiving the notice from the IRS. This withheld amount must be remitted to the IRS as indicated in the instructions on Form 668-W. Failure to comply with an IRS levy can result in penalties for the employer.
Form 668-W is part of the process by which the IRS collects unpaid taxes directly from a taxpayer's income. An employer is responsible for deducting these taxes based on information the employee provided on their W-4 form when they started employment. The withheld taxes contribute to the payment of local, state, and federal taxes.