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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.
Don't yell at us; we're volunteers
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yes, business owners, but did not set up 401k properly. Miscommunication between the payroll company and 3rd party 401k administrator
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yes, I found out the 401k was set as Sch C or sole proprietor business, not for S Corp.
So not it is in the process of withdrew contribution and close 401k acct
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just correction the previous response:
"not" should be "NOW"
