Electronic Filing of Withholding on Distributions

[Guest SDS_]

In the past we've completed the 8109-B coupon and instructed the client to deposit the federal tax withholding check with the coupon and mail to the Financial Agent. We requested our client to hen return for 1099-R and 945 records a copy of the check written to the financial agent. Effective 12/31/09, we've been informed that paper submissions and 8109-B Coupons will no longer be accepted and the withholding must be filed electronically using EFTPS. I realize this is only a proposed reg at this time however feel it is important to educate my firm as well as our clients between now and then.

Do any of you have thoughts or suggestions on how we can educate and or communicate this new electronic filing to Clients? How can we assist out clients with this new process?

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477

Thanks

[Bird]

Yes, this was raised earlier; I'm not a big one for finding old threads but I think the options are:

1. figure out the new process and help clients get set up and help them use it (ugh)

2. use Penchecks or some other service where you send them a gross check and they do withholding and 1099s

3. just pay up to $2,500 when filing the 945 (seems hard to believe because the old rules said if WH was over $500 it had to be done monthly, but that's how I read it)

[david rigby]

this may be the referenced thread:

http://benefitslink.com/boards/index.php?showtopic=45522