I have a client that has a company. Her and her husband are the only employees. The company showed a loss on the schedule C, but the husband was paid a wage over $300,000. The question is can the company make a SEP contribution of $49,000 for the husband even though the business will show a loss? My client took no wages from her company and will show a loss so no profit.

This same client has another company that will have schedule C profit however, there will be no wages paid to her. Can she do a SEP out of this company? To calculate her SEP contribution should we do the calculation before (not including) her self employment tax or should we do the calculation after (including) the self employment tax? I just need to verify this.

Thank you in advance for your help,

Todd