SEP IRA Retirement Contribution Bookkeeping Question
SEP IRA Retirement Contribution
I have a questions about SEP IRAs retirement plans that are similar to 401Ks except that the company makes 100% of the contributions.
There are numerous requirements that are well documented elsewhere on the Internet, but I can't seem to find any assistance regarding how to handle SEP IRA contributions from a bookkeeping standpoint.
It seems like there are two main scenarios:
* A SEP IRA contribution made for the current fiscal year
* A SEP IRA contribution made for the previous fiscal year
In the first case, my assumption is that I'd create a "SEP IRA Contributions" expense account and debit it for any contributions made for the current fiscal year. Is that correct?
In the second case, my assumption is that I should use a different expense account for contributions made for the previous fiscal year, maybe call it "Previous FY SEP IRA Contributions"
Am I even close here? Are there standard names that should be given to these accounts?
Wrong Form of the Social Security
There are 2 business and I have been doing my income tax by a bookkeeper. The other business went with another accountant and he said that he had found a form of that business with his social security that he had made that money. I was under the assumption that it was all in my name. I paid income tax on that form, form because I had placed that bid and every time they paid for that work and paid income tax on it. Now the account says that it is all wrong. What is my liabilty on that?