What does payroll tax form 668-W instruct employers to do?

Payroll tax form 668-W is a notice of levy issued by the Internal Revenue Service (IRS) that instructs employers to withhold certain amounts from an employee's wages to satisfy a tax debt owed by the employee. This form typically arises in situations where the IRS is attempting to collect overdue taxes from individuals, and the employer is required to take action by remitting the withheld amounts to the IRS.

Employers must comply with this directive as it indicates their responsibility to ensure that a portion of the employee's wages is set aside and sent to the IRS, rather than being paid directly to the employee. This process is crucial for fulfilling legal obligations imposed by the IRS and for aiding in the recovery of taxes that are owed. By following the instructions on form 668-W, employers help ensure that they are acting in accordance with tax laws and protecting themselves from potential penalties for failing to comply with levy requirements.

The other options refer to different circumstances and requirements. Exemptions from withholding for foreign income pertain to different forms and regulations, while quarterly reporting of payroll taxes and requesting abatements of penalties involve separate accounting and administrative processes. Thus, the focus of form 668-W is specifically directed towards the withholding and remittance of wages that are levied