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Hi,
Can anyone help?
I have a S Corp client had set up the 401k contribution of $23000 for the two owners for 2025, but had no W2 salary processed by Paychex.
There were 4 other seasonal parttime workers all had <1000 hours in 2025.
We have contacted the paychex and their 3rd party 401k Admin to issue a W2, to inclue the employee's contribution on W2, but they do not respond. They said will report to up manager.........
Anyone has experience of that?
thanks!
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With no W-2 wages the shareholders cannot make elective deferrals and are not eligible for employer contributions.
The more I know the more I don’t know.
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Are these people shareholders, or shareholder-employees? It would be matter if they worked for the business, in other words.
If they worked and took distributions in lieu of payroll, you might want to fix that.
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