Common use of Payroll Reporting and Withholding Clause in Contracts

Payroll Reporting and Withholding. (a) Form W-2 Reporting. Choice and Manor Care hereby adopt the "alternative procedure" for preparing and filing IRS Forms W-2 (Wage and Tax Statements), as described in Section 5 of Revenue Procedure 84-77, 1984-2 IRS Cumulative Bulletin 753 ("Rev. Proc. 84-77"). Under this procedure Choice as the successor employer shall provide all required Forms W-2 to all Choice Individuals reflecting all wages paid and taxes withheld by both Manor Care as the predecessor and Choice as the successor employer for the entire year during which the Distribution takes place. Manor Care shall provide all required Forms W-2 to all Retained Individuals reflecting all wages and taxes paid and withheld by Manor Care before, on and after the Distribution Date. In connection with the aforesaid agreement under Rev. Proc. 84-77, each business unit or business operation of Manor Care shall be assigned to either Manor Care or Choice, depending upon whether it is a Retained Business or Choice Business, and each Retained Individual or Choice Individual associated with such business unit or business operation shall be assigned for payroll reporting purposes to Manor Care or Choice, as the case may be.

Payroll Reporting and Withholding. (a) Form W-2 Reporting. Choice and Manor Care Sunburst hereby adopt the ------------------ "alternative procedure" for preparing and filing IRS Forms W-2 (Wage and Tax Statements), as described in Section 5 of Revenue Procedure 84-77, 1984-2 IRS Cumulative Bulletin 753 ("Rev. Proc. 84-77"). Under this procedure Choice as the successor employer shall provide all required Forms W-2 to all Choice Individuals reflecting all wages paid and taxes withheld by both Manor Care Sunburst as the predecessor and Choice as the successor employer for the entire year during which the Distribution takes place. Manor Care Sunburst shall provide all required Forms W-2 to all Retained Individuals reflecting all wages and taxes paid and withheld by Manor Care Sunburst before, on and after the Distribution Date. In connection with the aforesaid agreement under Rev. Proc. 84-77, each business unit or business operation of Manor Care Sunburst shall be assigned to either Manor Care Sunburst or Choice, depending upon whether it is a Retained Business or Choice Business, and each Retained Individual or Choice Individual associated with such business unit or business operation shall be assigned for payroll reporting purposes to Manor Care Sunburst or Choice, as the case may be.