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Accounting, Payroll & Pension Issues/Is SEP IRA contirubtion required for a subcontractor?
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Question
I am a LLC and am planning to subcontractor work to another individual (incorporated as a business). Do I need to include their employee(s) in my SEP IRA plan?
Thanks!
Ashwin
You have to include an "employee" in your SEP. If you withhold taxes and Social Security and report the payments on a W-2, he is considered an employee. If the individual is an independent contractor, you report on a 1099 and he is not an employee.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Allen
Expertise
Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience
Over 35years experience in the pension field
Organizations
Various actuarial organizations
Education/Credentials
MBA and various professional certifications
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