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Level 2
March 6, 2024

To qualify for the small employer auto-enrollment tax credit (FORM 8881, part 2), do you need to have at least one NON-highly compensated employee?

  • March 6, 2024
  • 1 reply
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To qualify for the small employer auto-enrollment tax credit (FORM 8881, part 2), do you need to have at least one NON-highly compensated employee? I know you need to have at least one NON-highly compensated employee for the credit for small employer pension plan start-up costs credit, but what about the auto-enrollment tax credit?

    1 reply

    qbteachmt
    Level 15
    March 6, 2024

    There's nothing about compensation in that section:

    https://www.irs.gov/pub/irs-pdf/i8881.pdf

    You can follow the definitions for "eligible" plan and employer, if you want to dive deeper.

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