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Employer contributed 3% (=$900) for employee who earned 30K. Employee contributed nothing. Is his wage 30K? Medicare wage 30K? What does Box 12 say?
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All wages $30K. Check the retirement plan box. The end.
The more I know the more I don’t know.
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Just so you know, participants in Salary Reduction Simplified Employee Pension (SARSEP) plans established before 1997 were entitled to make elective salary deferral contributions. Now it's only an employer-contributed plan.
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I didn't know that. You mean SEP-IRA plans, code S in Box 12? Employees are no longer eligible to reduce taxable wage in Box 1 if they also contribute unless it's a pre-1997 established plan?
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Code S is for a SIMPLE-IRA, not a SEP.
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I think SARSEPs went away with TRA 86.
The more I know the more I don’t know.
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Right!! I haven't done payroll in decades.
Client can't set this up now, deadline was Oct 1.
