1120S Employee SIMPLE IRA Contributions
I am preparing an 1120S Return and would like to know where I need to report the Employee Contributions to the company's SIMPLE IRA plan.
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RandyA
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03/08/10 5:11pm PST
Viewed by asker 03/09/10 7:35pm PST
Viewed by asker 03/09/10 7:35pm PST
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Jay in Georgia
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03/08/10 5:51pm PST
EmployEE contributions to the plan have nothing to do with the 1120S
Accountant Man
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03/08/10 6:58pm PST
EmployEE contributions are deductible as part of employEE wages.
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
RandyA
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03/09/10 7:08am PST
I am getting conflicting guidance. Should the EmployEE contributions be deducted on line 8 - Salaries and Wages or on line 17 Pension and Profit Sharing? I thought line 8 should agree to the total of all employees' (excluding officers) W-2 box 1. However, if we include EmployEE contributions on line 8 of the return then it will not agree with all employees' W-2 box 1. Thanks for your assistance.
Accountant Man
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03/09/10 7:37am PST
Let's say you pay one employee $10,000 in wages, but they choose to have $2,000 withheld for the 401(k). What is payroll, $10,000 or $8,000? It's $10,000, which is probably box 5. That is also the total of F941s for the year.
That's what is payroll on the business return.
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
sjrcpa
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Intuit Moderator
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03/09/10 7:48am PST
Last time I looked at the corporate tax return instructions they said to put the employees salary deferrals on the pension line and wages net of those on the wages line.
The more I know, the more I don't know.
George4Tax
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03/09/10 8:09am PST
Read the instructions again. Page 16 - Pension, .... Enter the deductible contributions ... made by the corporation for its employees .... I agree that the line 7-8 instructions are confusing, but I am sure they are referring to company elective deferrals and not employee.
Hmm??? Could I have been clearer when I asked that question? Did I mark the question solved after it was answered?
sjrcpa
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Intuit Moderator
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03/09/10 8:41am PST
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George, I disagree with you, respectfully. I am not aware of anything called company elective deferrals. The instructions for wages line 8 say
Do not include salaries and wages reported elsewhere on the return, such as ... elective contributions to a section 401(k) cash or deferred arrangement or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan.
Bottom line-total deductions on the return will be the same so it does not really make a difference.
The more I know, the more I don't know.
