SECTION 4. STANDARD

PROCEDURE FOR PREDECESSORS AND SUCCESSORS

.01 In general . Under the standard procedure, the predecessor performs all the reporting duties for the wages and other compensation it pays. These duties include the filing of quarterly Forms 941 and the furnishing and filing of Forms W–2. In connection with the successor’s acquisition of property and hiring of employees from the predecessor, as described in section 1.01, the predecessor may cease to pay any wages required to be reported on Form 941 (for example, the predecessor may go out of business). In that case, the predecessor must file the Form 941 for the quarter of the acquisition as a final Form 941. If the predecessor does not cease to pay any wages required to be reported on Form 941, (for example, the predecessor remains in business) a final Form 941 is not required. Instead, the predecessor would file its quarterly Form 941 for the quarter of the acquisition. The successor, under the standard procedure, performs all the reporting duties for the wages and other compensation it pays.

.02 Forms W–2 . (1) In general . If, under the circumstances described in section 1.01, the predecessor is not required to file a final Form 941, the predecessor and successor both must furnish Forms W–2 to their respective employees on or before January 31 of the following calendar year. However, if an employee, whose employment is ter

minated before the close of the calendar year, requests the Form W–2 earlier, the Form W–2 must be furnished on or before the 30th day after the written request or the 30th day after the final payment of wages to the employee, whichever is later. The predecessor and successor must file Forms W–2 (Copy A) for their respective employees with SSA on or before the last day of February (or March 31 if filed electronically) of the following calendar year.

(2) Expedited Forms W–2 . If, under the circumstances described in section 1.01, the predecessor is required to file a final Form 941, the predecessor must furnish Forms W–2 to its former employees on an expedited basis. Forms W–2 must be furnished on or before the date required for filing the final Form 941 (generally one month after the end of the quarter). However, if an employee, whose employment is terminated before the close of the calendar year, requests the Form W–2 earlier, the predecessor must furnish Form W–2 on or before the 30th day after the written request or the 30th day after the final payment of wages to the employee, whichever is later. The predecessor must also file Forms W–2 (Copy A) with SSA on an expedited basis. The Forms W–2 (Copy A) must be filed on or before the last day of the second calendar month following the period for which the final Form 941 is required to be filed. .03 Forms W–4 . The predecessor must keep on file the Forms W–4 provided by its former employees. The transferred employees must provide the successor with new Forms W–4 as the successor now becomes responsible for deducting and withholding tax from wages paid to the transferred employees.

.04 Forms W–5 . The predecessor must also keep on file the Forms W–5 provided by its former employees. The transferred employees must provide the successor with new Forms W–5 for the current year.