Quantech and Sole Proprietors

[Guest AlCal]

Recently purchased Relius Adm System and attended training seminar. Encountered several unexpected problems, such as:

1. Apparently the program can not solve for net compensation in the case of a Sole Proprietor or Partnership.

2. Because the above, it seems impossible to run New Comp PSP for such plan sponsors.

Multiple conversations w/technical support confirmed the above.

Can hardly describe our frustration and disappointment. If anyone was able to run plans for SP or Partnerships....pleaseet us know how did you manage it. Thanx...AC

[Tom Poje]

I have to ask Mr. Baker about this one. I have an excel sheet, you can plug in the amount of contribution to others and then the spreadsheet will figure out the salary for the owner / partner in a profit sharing scenario. You didn't indicate whether this was by class or by formula, but it can be done in combo with excel if needed.However, I don't see that xls is an acceptable format so I can't put the file out here yet.

Other than that, If the owners are above 170,000 (200,000 next year) then it is a moot point

[Guest AlCal]

It is incomprehensible to me that a program with Quantech's fame is unable (or in the best case must be tricked) into performing some of the very common calculations. I'm still hoping from sombody to let me know how a New Comp for a sole proprietor or partnership can be handled without spending agonizing hours over an excel spreadsheet.And how about net comp if employer match, and how about safe harbor 401(k)/New Comp.

I feel that we must have been warned about all these shortcomings before we bought the program. At any rate we need some help and the technical support is apparently not able to guide us.

We really need all the help and guidance we can get; October 15 is around the corner!

Thanks.....AC

[Tom Poje]

best I can do is an excel sheet.

I have used this to verify Relius calculation on sole proprietors / partners (again, not in cross testing, but then I never had one of those)

Dave fixed it up so i can put on an xls file.

super!

[Guest AlCal]

Thank you Tom: I already downloaded your "ideal salary" spreadsheet, though I don't know yet how and if it can be used for sole prop/partnerships class allocation. Any ideea? You really did not have any similar situation?

Thanks....AC

[Tom Poje]

let suppose the year is 2002. I would start with a 5% contribution to the rank and file. determine the amount of contribution to that group and then enter that value in the spreadsheet. Then you can enter whatever % you want for the owner and the system will do the rest for you.

it is kind og hard to describe how exactly I would do it without sitting down with someone, just to make sure we were on the same wavelength. sorry. of course, this doesn't guarantee passing the nondiscrim test, but I think I sent you my nondiscrim notes as well. once you have determined an initial e-bar, you can calculate how to adjust in order to pass the tests. You would be surprised how easy this really becomes. Actually, you become lazy and simply set the routine up in another spreadsheet. there was a decent one under the cross testing board for this purpose.

(I know, why doesn't the software do it - well, maybe someday)

[TPAVP]

Our firm is the TPA on several New Comp plans with Quantech and have not run into any problems. If you are allocating a class allocation, you have to set up divisions for each class, then assign the division to the specific participants on the Status and Service Screen in Cenus. The 401(a)(4) Test seems to work fine.

You can also have Quantech calculate compensation on partners. You set up your plan specs on the Compensation Screen to "Compute Ideal Salaries" and mark whether you want it with or without FICA. You will need to key the gross earnings for the partnership. You then go to the Cenus and key in each partners portion of ownership. Quantech will prorate the salaries based on that information.

I'm not sure if that is specifically what you are asking about, but maybe it will help a little.