My company is in the process of implementing Vendor Backup Withholding for the first time. Where can I find some information regarding this topic?
“There is information on backup withholding in the Form 1099 General Instructions beginning on page 11. For U.S. companies, the backup withholding rate is 28 percent (watch this as that rate is scheduled to sunset at the end of 2010). Backup withholding is reported on IRS Form 945 see instructions for Form 945 here and the form 945 here. The IRS Guideline to Backup Withholding for Missing and Incorrect Names and TINs, is publication 1281. You must deposit withheld federal income tax, including backup withholding, by using EFTPS (electronic federal tax payment system) or by depositing at an authorized institution using Form 8109, Federal Tax Deposit Coupon. Some taxpayers are required to use EFTPS to deposit their taxes (see the instructions for Form 945). You must deposit quarterly, monthly or weekly, depending on frequency and amount of withholding. You report backup withholding annually via Form 945 (by January 31). On The Accounts Payable Network, you might find the following useful
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