409A reporting and computing of interest and penalty amounts

[Guest jigpsu100]

Here's a fun one (at least fun for us benefit geeks). Is an employer responsible for computing and reporting the additional interest? Also, is an employer obligated to report and withhold the penalty amount. We have a situation where an employee will recieve an amount which will be subject to both the additional interest and penalty amount. I just don't know how to handle it. I would appreciate any feedback from anyone that has come across this situation or has a better handle on it than me. Thanks.

[Randy Watson]

This should help with the withholding:

http://benefitslink.com/boards/index.php?s...=0entry116149

[Guest jigpsu100]

Thanks Randy!