OK to spread tax due on noncash award?

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in Office Management,Payroll Management

Q: An employee will receive a noncash award worth $24,000. The federal income taxes owed will exceed the employee’s paycheck. Can the taxes be spread out over multiple pay periods?

A: Yes. You can spread the withholding out over as many pay periods as you want during the same calendar year. The employer is responsible for withholding correctly. You should work with the employee to set up a workable withholding schedule.

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