Common use of Payroll Taxes and Reporting of Compensation Clause in Contracts

Payroll Taxes and Reporting of Compensation. Pursuant to the alternative procedure prescribed by Section 5 of Revenue Procedure 84-17, (a) Parent and ElderCare shall report on a "predecessor-successor" basis with respect to each ElderCare Individual; (b) ElderCare shall assume Parent's entire obligation to prepare, file and furnish Forms W-2 for the calendar year in which the Distribution occurs, and process garnishments and wage assignments with respect to each ElderCare Individual; (c) Parent shall be relieved of any obligation to provide Forms W-2 and process garnishments and wage assignments to each ElderCare Individual for the calendar year in which the Distribution occurs; and (d) Parent and ElderCare will work in good faith to adopt similar procedures under applicable state or local laws and will cooperate with each other in preparing filings and forms relating to such procedures.