How are SEP contributions reported for a S Corporation? What is shown on the 1120S form? What is shown on the S Corporation owner's W-2?

[paylesstax]

The S Corporation has made the contribution to the owner's SEP IRA.

[dmertz]

The S corp gets the deduction by including the SEP contribution on Form 1120S line 17, Pension, profit-sharing, etc., plans.  It's not reportable anywhere on the owner's W-2.

[rob1]

For a CASH basis S-Corp, are SEP contributions deducted from the 1120S Tax Return in the year the contribution is made, or in the year the contribution is for?

For Example, an employee's W2 shows $20,000 wages for 2019. The SEP contribution of $5,000 or 25% is not made until Feb 2020 after the year ended. Is the $5,000 deducted on the 2019 Tax Return or on the 2020 tax return? 

[theodoreable]

dmertz,

Does the K1 show the SEP contribution?  Thanks.

[Critter-3]

As a shareholder in an S corporation, you are not self employed.  Social Security and Medicare taxes are withheld from your pay reported on your W-2.  Your SEP-IRA contribution is also not reportable on your personal tax return because your SEP IRA contribution is made by the S corporation based on your W-2-reported income and deducted as an expense on the S corporation's income tax return.

There is no reason for these to appear on your Schedule K-1 (Form 1120S).  Your Social Security and Medicare withholding are reported on your W-2.  Your SEP-IRA contribution might also be shown on your W-2, but only for your information, not for reporting anywhere on your personal tax return.

The IRA custodian should mail a form 5498 showing the contribution ... these usually show up in May of the following year. 

[Sam Hopi]

This is also my question :

For a CASH basis S-Corp, are SEP contributions deducted from the 1120S Tax Return in the year the contribution is made, or in the year the contribution is for?

For Example, an employee's W2 shows $20,000 wages for 2019. The SEP contribution of $5,000 or 25% is not made until Feb 2020 after the year ended. Is the $5,000 deducted on the 2019 Tax Return or on the 2020 tax return? 

[RobertB4444]

For a cash basis corporation deductions are always taken in the year that the cash is actually spent.  So in your example the SEP contribution is deducted in 2020.

@Sam Hopi