en is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of rorked for Ken full time for the last four years. The office assistant earns
$33,400 per year, and each drafter earns
$43 arnings from self-employment (after deducting all expenses and one-half of self-employment taxes) are
$383,400. Ke thether to establish a SEP plan and has a few questions. Assume that all the employees are at least 21 years old.
lequired:
3. Is he eligible to establish a SEP plan?
?
Answer is complete and correct.
_(_())_(_())
b. Is he required to cover his employees under the plan?
? Answer is complete and correct.
_(_())_(_())