Simplified Employee Pension Law and Legal Definition
Simplified Employee Pension (SEP) is an employee assistance program. According to this program, tax-deductible contributions are made solely by the employer on employees’ retirement savings. Employers will be eligible for tax deductions up to 25% of all participants' compensation. Sole proprietorships, partnerships, limited liability corporations (LLCs), or incorporated businesses, including subchapter S corporations, can establish SEP plans. Participation should be allowed to employees who have completed 21 years of age and has performed any service for the employer in up to 3 of the immediately preceding 5 years.
Legal Definition list
Related Legal Terms
- Actuarial Experience [Employee Retirement]
- Actuarial Services [Employee Retirement]
- Administrative Employee
- Administrator of an Employee Benefit Plan
- Affected Employees
- Affidavit for Suspension of Fee/Cost
- Alien Employees
- Allotment from Federal Employee
- American Federation of Government Employees (AFGE)
- At-Will Employee
