Payroll Taxes

When is back-up withholding required?

Backup is required whenever one of four criteria are met:

1. When payments for the year are more than $600 and the taxpayer failed to furnish a taxpayer identification number
2. When the taxpayer identification number is incorrect
3. When the employer is notified to do so by the IRS
4. When the payee fails to certify they are not subject to withholding