Basically Posted August 13, 2024 Posted August 13, 2024 In the situation where you have a control group that use one plan.... It seams to reason that each company pays the contribution required for it's own employees... right? I'm talking a straight forward 3% SHNEC. Can Company-A pay Company-B's 3% SHNEC? (curious with this question) Just need confirmation, thanks
CuseFan Posted August 13, 2024 Posted August 13, 2024 I would defer to the company's accountant, but if the consolidated company files a consolidated tax return, then any or all companies within the control group can contribute whatever amounts. However, if A & B file separate tax returns I believe each must contribute and deduct their respective amounts. At least that is my recollection, but again, a qualified tax accountant for the company(ies) should be able to answer definitively. Belgarath, Luke Bailey and acm_acm 3 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Bri Posted August 13, 2024 Posted August 13, 2024 I think the underlying thought there to Cuse's point is that why would/should a company get a deduction for some OTHER company's ordinary business expense. One tax return blurs it all together, separate ones would not. Luke Bailey 1
Basically Posted September 5, 2024 Author Posted September 5, 2024 Thank you. Ya, doesn't make sense for one company to pay another company's contributions. And they are not filing a joint return. Looking at your responses I should have thought of that.
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