Per the IRS, one of the qualifications to be eligible for the credit is you had at least one plan participant who was a non-highly compensated employee. By definition, a highly compensated employee is any individual who owned more than 5% of the interest in the business at any time during the year, regardless of how much compensation that person earned or received. Therefore, it is correct that the option isn't available if you enter accurately as a sole proprietor with no employees. Such a situation would not qualify for the credit.
In addition, the auto enrollment tax credit is also dependent upon being an eligible employer - again with at least one plan participant who was a non-highly compensated employee.
@lac528
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