The IRS has updated yet another form you encounter in Payroll, so it’s important to make sure you’re using the correct version.
For 2159, Payroll Deduction Agreement, was revised in July 2018.
As a reminder, the form is used when an employee attempts to make an arrangement with the IRS to pay back taxes and other payments owed through payroll deductions.
Employers must approve the agreement before it’s put in place by completing the “Employer” section of the form, which requires the name and number of a contact person.
The employee may include a letter from the IRS with the request. After signing off on the arrangement, employers must return all parts of the form listed in that letter to the agency.
Once you start sending payments to the IRS, each one should include the employee’s name and Social Security Number. If known, also list any related tax periods and forms.
More info: irs.gov/pub/irs-pdf/f2159.pdf