Good Morning!
Have a C Corp with a fiscal year 8/1/17 -7/31/18.
SEP contributions have always been calculated based
on fiscal compensation of employees.
Eligibility requirement is performed services 2 out of 5 years.
Have an employee who started work March 2016.
Q: Would she be eligible August 2018 or March 2018??
Q: Would she be included in the contribution calculation for
the tax year 2017 (8/1/17 thru 7/31/18??
The employer wasn't planning on including her compensation for this
2017 25% contribution...
and to muddy the waters more, C Corp starting matching her 2 contribution
in March 2018.
Any guidance greatly appreciated!!
S