Sole Prop Calculation Software

[Guest tmv12345]

Is anyone familiar with software used to calculate the Sole Prop? I'd like to license a version, but am having trouble finding vendors.

[Lori Friedman]

Are you looking for software to calculate the net income eligible for a retirement plan contribution? Unless I'm missing something about your question, all you need to do is take Schedule C net income and subtract the 50% self-employment tax deduction from Form 1040, Line 27. Also, the I.R.C. Sec. 404 amount is limited to .25/1.25 = .20

[Guest mjb]

The calculation for the tax deduction for self employeds is available for free on p 21 of IRS pub 560. Why would anyone pay for it?

[Mike Preston]

You might want to peruse this thread:

http://benefitslink.com/boards/index.php?s...amp;#entry88861

[Peter Gulia]

The widely recognized expert is Gary Lesser. His software is the choice of CPAs, TPAs, and others who need to solve this math for small business owners.

From benefitslink.com/software.html

QP-SEP IllustratorTM - Used for designing retirement plans and allocating contributions under SEPs, SARSEPs, profit sharing, and money purchase pension plans for corporations, partnerships, and self-employed individuals. Automatically calculates net earned income, self-employment tax, integration spreads, actual deferral percentage (ADP), top-heaviness, future value, and limitations on contributions and their deductibility. Ineligible owner and guaranteed payment partner situations can also be handled. Other factors, such as outside W-2 income and self-employment gains and losses, are also taken into account. Client files can be printed, saved, and recalled. Handles up to 18 corporate employees (or 8 owners and 10 nonowners if unincorporated). Larger sizes, up to 2,000 employees, are available. More information and an online order form is available (click here)

[Gary Lesser]

MJB,

Unless the nonowner contributions amounts are known, one-half of the SE tax is unknown. Therefore, the "1/2 of the SE tax deduction" must be determined on the fly (as the pla is being designed-generally arount the owner or owners. The IRS worksheets only works after the plan has been designed.

You may find the attached software program, QP-SEP Illustrator, helpfull. The 2006 version is attached.

GSL Galactic Consulting Software Installation

(For all Microsoft Windows®-based operating systems, including “Vista”)

Install to hard drive. Run (open or execute) GSL-QPSEP to install QP-SEP (Cor-Sar and Keo-Sar) programs. Accept all defaults. Program will install two icons on your desktop. Click on the desktop icon to launch desired program. Your screen may go blank for a few seconds while program loads (this is normal). Once Title screen loads, press any key to exit Title screen and enter input screen. Press [Alt]+Q at any time thereafter to Exit program.

Designed to be used for: Designing retirement plans and allocating contributions under SEPs, SARSEPs, profit sharing, and money purchase pension plans for corporations, partnerships, and self-employed individuals.

Key features: Automatically calculates net earned income, self-employment tax, integration spreads, actual deferral percentage (ADP), top-heaviness, and limitations on contributions and their deductibility. Ineligible owner and guaranteed payment partner situations can also be handled. Other factors, such as outside W-2 income and self-employment gains and losses, are also taken into account (if entered). Top-heaviness is based on document type entered, e.g., model or prototype. Client illustrations can be printed, saved, and recalled.

Starting the program: To operate program or to view the instructions after installation, click the Start button, select Programs, open (click on) the GSL-QPSEP and click (open) the icon for the program you wish to run (COR-SAR for corporations, or KEO-SAR for unincorporated entities) or to view or print the instructions and other information charts. The program can also be started directly by clicking the yellow and red "COR-SAR" or "KEO-SAR" icon on your desktop.

For support call me at 317-254-0385.

GSL_QPSEP.ZIP