Hi to all. I need a help walk through how to file 8881 for a S-Corp. Also I would like to understand simply what line 7 and 8 mean : 

7- Credit for small employer pension plan startup costs from partnerships and S corporations

8 -Add lines 5, 6g, and 7. Partnerships and S corporations, report this amount on Schedule K. All others,
report this amount on Form 3800, Part III, line 1j 

What is thehe first step? and so on..

I was wondering while the setup costs are incurred in the first year and it has been done and employees contribute ongoing basis how come this tax credit is spread over three consecutive years? it means employer can apply this credit for 3 years if employer run this set-up one more time after the first year in the next year and third year? Assume the cost is $4500 and the max of credit is $5000, for the rest should apply in the next year? Or something else?

And should employer have contribution in Auto-enrollment plan? In this form line 1 to 5 is 

I do not know why when I complete this form 1-5, the cost deducted from line 17?

And If employer did not have any number in line 17,  RED ERROR popes up. 

What does mean Auto-enrollment? Is there any way to set-up plans?