Plan Compensation

[retbenser]

Given a S-corp. The owner's spouse is getting W-2 and 1099 (I am not sure if this is possible).

Question: Is it possible to include both W-2 and 1099 as Plan Compensation (as either Sec 3401 comp or Sec 415 comp)?

Thanks.

[SoCalActuary]

If the 1099 is for services to a separate entity, and not as S-Corp K-1 income, then the separate entity needs its own tax filing, netting out expenses and SE Tax. If that entity also is an adopting employer, then the net profits can be considered.