When an employer receives Form 668-W from the IRS, when must they begin to withhold and remit?

The correct choice is that the employer must begin to withhold and remit with the first payment of wages after receipt of Form 668-W. This form is a "Notice of Levy on Wages, Salary, and Other Income" issued by the IRS to collect unpaid taxes. The moment the employer receives this notice, they are obligated to take immediate action regarding withholding the specified amount from the employee's wages.

Form 668-W essentially directs the employer to withhold a certain percentage of the employee's wages to satisfy the levy, and this withholding must occur as soon as the employer processes the next payment following the receipt of the form. This underscores the urgency of compliance with IRS levies, as failure to withhold can lead to significant penalties for the employer.

The other options imply a delay in the withholding process, which does not align with the requirement for immediate action upon receipt of the Form 668-W. Compliance with IRS levies is critical, making the prompt initiation of withholding essential for employers.