Insurance Agent Compensation

[R. Butler]

Large insurance company pays compensation to both the agent directly and to an S-Corp. owned by the agent.

Agent partiicpates in the insurance companies plan based on the wages paid direclty to him by the insurance company

Agent wants the S-Corp. to adopt a SEP and receive a SEP contribution based on his W-2 wages that he pays himself from the SEP.

Any reason he can't do that? I don't see an issue right off, but that pay scenario confuses me.

Thanks in advance for any guidance