What a Doozy!

[BOB W]

Employer ..........

...........doesn't get a deduction for employee contributions to a 401k, only employer matching funds, if any. So nothing would appear on the Corporate return relating to the $15,000.

To protect the 401k plan as a total plan, you should issue a W-2, and all that is involved to get to the W-2, for the officers.

[BOB W]

Look to........

.... the 2005 checks. This was probably a last minute decision after the year closed.

[Bees Knees]

...........doesn't get a deduction for employee contributions to a 401k, only employer matching funds, if any. So nothing would appear on the Corporate return relating to the $15,000.

The employee contributions would be deducted under gross wages.

[BOB W]

Clearification..

There is no SEPARATE deduction for employee contributions because it is part of their gross payroll.

Don't get picky Bees...........

[Bees Knees]

Well, that is my point. j2kp0t says its not on the return. Maybe it is on the return. Maybe they stuck it under misc supplies or something.....

[BOB W]

Yes,....

this slipshoud way that the return/books was handled leaves questions galore. But it is probably as simple as the owners not knowing proper proceedure and the accountant not being told of the contribution.

Probably another case of "QB by management" and the trial balance given to someone willing to prepare the corp return well after the year closed and they felt nothing else could be done about Officer Payroll. ( I'm giving the accountant some credit for knowing what should be done.)