"Phoebe Roberts, EA" <Phoebe[at]cottagesoft.com> wrote:
- quote -

Ah, I see you read it differently than I did. I read it as
only $5,000 total having been paid in June and December.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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Dave Woods <davidwoods[at]verizon.net> wrote:
- quote -

David,

sorry for the confusion. I paid myself a $5,000 salary in
each of June and December, totaling $10,000. A SIMPLE
contribution of $4,000 was made with each payroll run in
June and December. I know the June contribution should have
been deposited into the SIMPLE IRA by July, but that detail
got missed until I did the December payroll.

Thanks for letting me clarify that point.

Steve Quinton

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Dave Woods wrote:
- quote -

I think he paid $5,000 in June and $5,000 in December, for a
total of $10,000, $8,000 of which was deferred. (Or not
deferred, since there was no plan in place, but treated as
if deferred.)

I'd be tempted to wait for the letter saying your W-2s don't
match your 941s, and explain the whole mess then.

Phoebe

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"Steve Quinton" <Steve_Quinton[at]comcast.net> wrote:

- quote -

I am uncertain about the payroll forms as I rarely ever work
in that area, but I am confused as to how you possibly could
have contributed $8,000 of a $5,000 salary for your
ineligible SIMPLE Plan for 2003.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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I own and am the sole employee of an S-Corp. I paid myself
$5,000 in wages in June and December, 2003, and contributed
$8,000 of my pay to a SIMPLE IRA. In the beginning of
January 2004, I filed Form 941, W-2, and 1096 (for W-2) for
the year 2003. When I went to open a SIMPLE plan a week
later (to deposit the contribution), ya, you guessed it, I
was told that the SIMPLE plan had to be established by
October 1st, so a contribution couldn't be made for 2003. I
filed an extension for my S-Corp and personal return until I
could strighten out this mess.

I believe I have to amend my form 941, W-2, and 1096. The
only number I need to correct on the Forms 941 and W-2 is
gross wages, not any of the withholding amounts. But when I
read the instructions for the 941c, it seems that the form
only takes corrections for witholding amounts, and there is
no spot on the form to correct gross wages. Do I file
another 941 for the two quarters and attach them to a Form
941c explaining in part V that the only correction being
made is to the gross wages, and not to any withholding
amounts?

Can someone please tell me how I go about correcting this
error?

Thank you for your help.

Steve Quinton

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