A third-party not acting as an agent has specific responsibilities for transferring tax liabilities. They:
Must withhold and deposit the employee’s FICA (A ✅ )
Must notify the employer of FICA paid (D ✅ )
Must provide a detailed statement by January 15th (C ✅ )
However, FIT withholding is optional for non-agent third parties , and if the employer is to assume liability, they will handle FIT themselves. Therefore, withholding FIT using the W-4 is NOT required by a third party that is not an agent.
✅ Correct answer is B
[References:, IRS Publication 15-A – Employer’s Supplemental Tax Guide, APA Payroll Source – Chapter on Third-Party Sick Pay, ]
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