Simplified Employee Pension Plans
If you are self-employed or own a small business, you may be under the impression that retirement plans are only for large companies. However, a Simplified Employee Pension Plan or SEP IRA might be a good option for you. SEP IRAs are designed to provide a number of advantages. They’re easier to establish, have a significantly lower setup cost and offer simpler reporting requirements. For employees, SEP IRAs offer substantially higher contribution limits than regular IRAs and enables them to accumulate more for retirement.
| Requirements | Employers | Employees |
| Eligibility | Any business owner or self-employed individual. | Employees must be 21 or older to participate, the must have worked for you for 3 of the past 5 years and earned at least $450 from you last year. |
| Contribution Limits | 25% of compensation up to $42,000 per calendar year, per individual. | Employees cannot contribute. However, the employer must contribute the same salary percentage to all eligible employee accounts. |
Electronic Federal Tax Payment System
EFTPS, the Electronic Federal Tax Payment System, is a tax payment system provided FREE by the U.S. Department of Treasury for businesses to pay their federal taxes electronically or by phone. EFTPS is secure, fast, accurate, convenient, easy to use and payments can be scheduled in advance. Visit EFTPS to enroll.
