— Due to the Department of Labor
(DOL) going "paperless" as of January 1, all businesses with a pension plan and/or a 401k may face up to $15,000 in fines for not having an e-mail address to file forms electronically, according to a press release
According to the release, groups concerned that some business owners may have difficulty accessing the Internet have approached the DOL seeking to allow tax preparers to electronically file on behalf of the client, but the DOL has said employers are not to share ID and password information with a third party.
Brett Goldstein, a pension administrator and president of The Pension Department, said: "The law is designed to save the government money by reducing manual operations.
Unfortunately, 20-28 percent of small businesses don''t use e-mail. The new e-filing requirement will be burdensome to small business owners who will have to spend time away from their business to e-file."
Goldstein also said that this may discourage business owners from offering a pension plan or 401k to workers.
Goldstein added: "To assume that every business in America
has access to the Internet and knows how to use it or wants to is ridiculous. I have several clients that refuse to use the Internet or e-mail. If this petition is not accepted by the Department of Labor, I will have to tell my clients that I can no longer service them."