Common use of Tax Withholding and Reporting Clause in Contracts

Tax Withholding and Reporting. The Bank shall withhold any taxes that, in its reasonable judgment, are required to be withheld, including but not limited to taxes owed under Section 409A of the Code and regulations thereunder and employment (e.g. FICA) taxes due to be paid by the Bank pursuant to Code Section 3121(v) (i.e., FICA taxes on the present value of payments hereunder which are no longer subject to vesting). The Executive acknowledges that the Bank’s sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies). Further, the Bank shall satisfy all applicable reporting requirements including those under Section 409A of the Code and regulations thereunder. Executive agrees that appropriate amounts for withholding may be deducted from the cash salary, bonus or other payments due to the Executive by the Bank to satisfy the employee-portion of such obligations. If insufficient cash wages are available or if the Executive so desires, Executive shall remit payment in cash for the withholding amounts. The following Section 8.18 shall be added to the Agreement immediately following Section 8.17: