Plan Design - owner w/low pay wants higher contributions

[chuTzPA]

Thinking about plan design. ER has one owner, 40's, minimizes pay.  Would like to start up new plan and willing to increase self pay to allow for contributions.  401k, safe harbor are fine. But this approach does not mesh well with xtested design since ratios are too high to pass. pay too low for integrated formula to function too. thinking about other design considerations.

[Belgarath]

Any family members that can be put on the payroll, but excluded for contribution purposes, to help testing?

Hard to even guess on these situations without detailed census information. Sometimes they just have to bite the bullet and give their employees a decent contribution!

[chuTzPA]

Good idea re family members but alas there are none

[shERPA]

It's a trade-off.  Higher comp = higher contribution for owner/lower NHCE contributions, but also higher payroll taxes.  Also with S corps now wages do not get 199A deduction, but pass thru income does.  So the business owner has to work with CPA to determine the optimum mix of wages, payroll taxes, plan contribution/deduction, ee plan expense and 199A deduction.