Running bonuses through SEPs. (simplified employee pensions): An article from: The Tax Adviser Review
This digital document is an article from The Tax Adviser, published by American Institute of CPA's on August 1, 1994. The length of the article is 447 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: Employers can use simplified employee pensions (SEPs) to avoid paying FICA taxes on employee bonuses and distributing the contributions to the SEPs immediately. Early distributions from the SEPs are subject to a 10% early withdrawal penalty for employees under 59 1/2 years old, but for most employees the penalty will be a smaller percentage than withholding taxes would have been. SEPs would also allow employees to maintain tax deferral of their bonuses, and the employer could deduct contributions not paid out by year's end.
Citation Details
Title: Running bonuses through SEPs. (simplified employee pensions)
Author: John M. Peterson
Publication:The Tax Adviser (Magazine/Journal)
Date: August 1, 1994
Publisher: American Institute of CPA's
Volume: 25 Issue: n8 Page: 487(2)
Distributed by Thomson Gale
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