S Corp 401(k) Employee and Employer contribution

[jjim]

Hi,

I have a S Corp LLC and opened 410k this year, and contributed employee portion of $22,500 deferred compensation for 2023. 

If the box 1 wage from W2 is $100,000 and as an employer, I contribute 25% of the wage - $25,000

My question is

1. Where do I report the $22,500 deferred compensation on 1120S?

2. Do I report the employer contribution - of $25,000 on form 8881, line 6b?

3. If yes on question #2, do I still report the $25,000 on 1120S line 17a?

Thanks!

[DaveF1006]

Go to federal taxes and then deductions. Go to Compensation and Benefits to report salaries and deferred compensation. After this is done, this is what it will look like in your tax return.

The $22,500 will appear in profit sharing, pension... smart worksheet between lines 16 & 17 in the 1041 and salaries will appear in Line 8. 

Now I assume the $25,000 is the startup costs for the pension plans.  That would go on line 1 of the 8881. Then on line 3 is where you would record the number of employees you pay salaries to and this is a credit based off of your (number of employees) X ($250). The 8881 will compare the two amounts and allocate the smaller amount to the smart worksheet I mentioned earlier.

Then the credit will subtract from the $22,000 amount and report the remainder on line 17 on Form 1041. As an FYI, you would need to go to the forms mode in your return and select open form.  Type in 8881 and this will generate Form 8881 to record the $25,000 pension startup costs and to calculate the credit for the number of employees in the pension plan. The credit will eventually be reported on Schedule K to be distributed to the shareholders,