414(s) related and bonuses being tested

Hi

I have a request for a combo proposal and was given base and bonus salaries separately. In general, I do not exclude bonuses but here some bonuses are higher than the base salaries. Never had to deal with 414(s) issues before.

Sponsor is a partnership with 2 partners.

The other employees are all a mixture of HCE and NHCE.

Only the employees have bonuses and partners do not.

So, if I exclude the bonuses for all non-owner employees (HCEs and NHCEs), do i have 414(s) issues due to the 2 partners getting just k-1's?

Thank you

You may or may not.  The partners will just be 100% in the 414(s) test.

Just run the test.  Can't be too hard.

Wouldn't the partner's earned income need to be adjusted for 414s testing?  See Treas. Reg. 1.414(s)-1(g)