What form is used for the employer to pay the excise tax due on excess contributions, and when is it due?

The correct form used for the employer to pay the excise tax due on excess contributions is Form 5330. This form is specifically designed for reporting and paying excise taxes related to certain retirement plans, including 401(k) plans. When a plan has excess contributions, typically referring to contributions that exceed limits imposed by the IRS, the employer is required to report and pay the applicable excise tax using this form.

Additionally, Form 5330 is due 15 months after the end of the plan year in which the excess contributions occurred. This timeframe allows employers to assess their situation and determine the amount of excise tax owed, as well as to make necessary adjustments to correct the excess contributions.

Understanding these requirements is crucial for compliance with IRS regulations regarding retirement plan contributions, thereby avoiding further penalties and ensuring that both the employer and employees remain in good standing under tax laws.