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Accounting, Payroll & Pension Issues/Pension withholdings
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Question
I recently paid out some pensions to some of our firefighters. I deducted the Social Security and Federal taxes. I know that I need to send them a 1099R. But how do I get the deductions to the IRS. Do I send it with my regular withholding payments?
You will need to obtain IRS Form 8109-B. You complete the form and a check. You then take the form and check to your bank for them to transmit to the IRS. You must take it to the bank where the check is being drawn.
I do not believe you should have withheld Social Security tax on the pension payment.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Allen
Expertise
Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience
Over 35years experience in the pension field
Organizations
Various actuarial organizations
Education/Credentials
MBA and various professional certifications
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