SEP for S Corp

[DaveinTexas]

Let me see if I have this correct:

Single owner S Corp with wages of $94,900.

He wants to contribute $13,000 to his SEP for 2006.
I have read the pub 560, but still do not understand if it is already too late to make this contribution or if the contribution must be made by this March 15th, the due date of the S Corp.

If it is not too late, the S Corp will contribute the $13,000, subject to FIT, SS and Medicare, and FUTA. Deduct the contribution on his 2006 1120S. Does this add to his wages for 2006 or 2007? Or is it already too late to make a contribution for 2006.

More backround: This SEP was established in early 2005.

TIA

[OldJack]

An officer/shareholder of a S-corp is an employee and not self-employed. The SEP contribution is based upon W2 gross including fringe benefits that may have been added to gross. A SEP contribution made by an S-corp is not added to wages of the employee/shareholder and not subject to payroll taxes. A SEP contribution of a S-corp is deducted on page 1 of the 1120S as long as it is paid by the 1120S due date, including extensions. Nothing regarding a SEP contribution goes on the shareholders 1040.

[DaveinTexas]

thanks

You're right; I was reading about SARSEPs when I read about the contribution is subject to payroll taxes.

Sorry. Thank you for the information; that is a great help.