ABC company has two employees. One employee is the sole owner of the company. The other employee
Question:
ABC company has two employees. One employee is the sole owner of the company. The other employee is 35 years old and has worked over 1,000 hours for the last 3 years. This employee's salary during this period had been $68,000/year. The employees are not related. The company's net earnings for 2022 was $1.0 Million. Which of the following statements is most accurate:
1. The employer must either provide a $6,000/year raise or offer a qualified plan to all non-highly compensate employees in order to avoid penalties under the Internal Revenue Code.
2. An employer must provide contributions of at least $6,000/year for all qualified employees
3. None of these choices
4. The employer must offer a qualified plan to all non-highly compensate employees in order to avoid penalties under the Internal Revenue Code.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill