Who writes off the amount put into a SEP, the business or the employee?

2 Answers

  • Anonymous
    9 months ago

    The employer deducts contributions made with the employer's money. 

    The employee's taxable income is reduced by the amount of contribution that comes from their own wages/salary. 

  • Eva
    Lv 7
    9 months ago

    Who contributed the money? If the business paid it without deducting it from the employee's paycheck, the business deducts it as an employee benefit. If it was a post tax deduction from the employee's paycheck, the employee deducts it.

Still have questions? Get your answers by asking now.