SEP Fiscal year Employee Eligibility

Technical topics regarding tax preparation.
#1
Posts:
171
Joined:
30-May-2014 9:29am
Location:
Murfreesboro TN
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
 

#2
sjrcpa  
Posts:
6563
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
haydengulf wrote: C Corp starting matching her 2 contributionin March 2018.
Matching what contributionn?

What does the SEP adoption agreement say about eligibility?
 


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