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Definition of Compensation to Determine SEP Contribution


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IRS Publication 560, page 4, provides a general (and broad) definition of compensation. One key word is that the employer "can" define it to include their entire list of items (wages, fees, and other). "Can" means there is a choice available to exclude items as long as it's not discriminatory.

So I would say yes, you can exclude fringe benefits. Probably go with "wages and salary".

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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