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Printable Form Instructions 990-PF Hillsboro Oregon: What You Should Know
These contributions will be treated as “qualified contributions” for purposes of § 404(m), and so may be deducted in determining the amount of the employee's salary deduction and the amount of any wage reduction. Note that the employer of the employee (the person who makes the contribution)(s) must deduct the contributions at the time the employer deducts wages and not the time of tax receipt. Example 1, 2017: Assume a single employee who makes 50,000 in taxable compensation. The contributions to the Scarlett Foundation are 15,000 of which 5,000 is made during the calendar year (August 1) and 100 during December (March 31). A single contributor's taxable compensation is 50,000. In addition, no employer or employee contributions are made during calendar year 2025 to any charitable corporation, trust, or other entity (whether incorporated or not). This is because no compensation of any dollar amount during 2025 and any portion of 2025 is taxable. Therefore, the contributions will not be treated as excluded wages for purposes of Section 4941. See, Notice 2017-27, which may be obtained by calling the Treasury website: Example 2: Assume an employee of a corporation who makes 1 million in taxable compensation. The corporation does not make contributions for a calendar year during which the employee was employed because, at the time the contributions were made, the employee was employed full-time. There is no taxable compensation for the corporation for January 2025 and February 2025 because the employee was not employed during that period of time. Because no taxable compensation was recorded during those months, no contribution was made toward any charitable corporation, trust, or other entity during either a calendar year of those months or during 2017. Therefore, the contributions will be treated as excluded wages for purposes of Section 4941. See, Notice 2017-27, which may be obtained by calling the Treasury website: A. B.
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