945's & 1096's

[austin3515]

Single Employer sponsors 2 plans, a 401(k) and an ESOP. Each has distributions with withholdings for the 2004 Plan Year.

1) When preparing 1096's for the 1099's should one or two 1096's be prepared (ie., one for the taxpayer/employer as a whole, or one for each Plan).

2) Same question for the 945.

3) So in summary is all of this reporting (1099, 1096, 945) performed at the Plan Level or the employer level?

Any thoughts are greatly appreciated.

[pmacduff]

I was under the understanding that in the event of an audit, the distribution $ reported on the 5500 form can then be tied to the 1099-R form $ for balancing. We do the 1096 & 1099-R forms under the name of the Plan anyway, even if using the Employer EIN. However, in the "old days" when there were many Employers with both a Money Purchase and Profit Sharing Plan, we used to combine the 1099-R forms. Upon audit, then or now, we have never had an issue. If you don't have separate Trust ID numbers for reporting, I think you could combine. So I guess my opinion is that you could do it either way! Others?

[austin3515]

We do not have separate EIN's for the trust.

Also, in the 945 instructions early on there is a note that says to ensure the same name and EIN are used consistently. So it seems that the Company's name should show up on the 1099-R? Because only one 1096 should be filed per EIN?

[Guest CAM223]

each plan should have a separate TIN if you are witholding and deposting tax for that plan. The IRS frowns on filing under the EIN. There are penalties for not filing electronically if the tax due under the EIN (FICA, Medicare , FWT and FUTA) are over a certain amount. Why don't you have trust id numbers?

[austin3515]

Life is easier that way. I've never seen a separate TIN for a plan. Is having separate TIN's the norm?

[JanetM]

That is how we always did. The way we (the TPA) could do all the tax reporting and not have the employer/PS screw it up. Leaves a cleaner audit trial in the record keeping and reporting files too.

[austin3515]

After spending a lot of time thinking about this and researching, I'm inclined to agree with you... I think most of my experience has been with Plan's that a 3rd party bank do all the withholding anyway...