Company Withholding Clause Samples
The Company Withholding clause establishes the company's right and obligation to withhold certain amounts from payments made to employees, contractors, or other payees, typically to comply with tax or legal requirements. In practice, this means the company may deduct income taxes, social security contributions, or other mandated withholdings from salaries, bonuses, or other compensation before disbursing funds. This clause ensures the company fulfills its legal obligations regarding tax and statutory deductions, thereby protecting both the company and the payee from potential penalties or liabilities arising from non-compliance.
Company Withholding. Notwithstanding anything contained in this Agreement to the contrary, in the event that, according to the determinations in the paragraph above, an Excise Tax will be imposed on any Payment or Payments, the Company shall pay to the applicable government taxing authorities as Excise Tax withholding, the amount of the Excise Tax that the Company has actually withheld from the Payment or Payments.
Company Withholding. Notwithstanding anything contained in this Agreement to the contrary, in the event that, according to the determination of the Executive or his advisor pursuant to Paragraph 3.7 hereof, a Golden Parachute Excise Tax will be imposed on any Termination Payment or Payments, the Company shall pay to the applicable government taxing authorities as Golden Parachute Excise Tax withholding, the amount of the Golden Parachute Excise Tax that the Company has actually withheld from the Termination Payment or Payments.
Company Withholding. Should the Company be required, pursuant to the Code, the laws of any state or any other provision of law, to withhold any amount from amounts otherwise distributable to any Member or on the basis of income allocable to any Member, the Company shall withhold those amounts, and any amounts so withheld shall be deemed to have been distributed to that Member under this Agreement. If any sums are withheld pursuant to this provision, the Company shall remit the sums so withheld to, and file the required forms with, the Internal Revenue Service, or the appropriate authority of any such state or other applicable government agency. In the event of any claimed over-withholding, a Member shall be limited to an action against the Internal Revenue Service, or the appropriate authority of any such state or other applicable government agency for refund, and each Member hereby waives any claim or right of action against the Company on account of such withholding. Furthermore, if the amounts required to be withheld exceed the amounts which would otherwise have been distributed to a Member, the excess withholding shall constitute a loan from the Company to such Member, and the Member shall pay such amount to the Company within ten (10) business days after notice from the Company. If the loan is not paid within that time, such failure shall constitute a default by that Member, and the Member shall be liable for interest on the amount of such loan from the date of notice until paid at an annual rate equal to the lesser of eighteen percent (18%) or the highest rate permitted by law. This loan shall be repaid in full within ten (10) business days after demand (and for this purpose any Member other than the Member on whose account such loan was made may unilaterally make such demand for and on behalf of the Company), and if no demand is made or the loan is not repaid, the loan shall be repaid, without prejudice to any other remedies at law or in equity that the Company may have, out of distributions to which the debtor Member would otherwise subsequently be entitled under this Agreement.