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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?

mh4
Level 1

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?

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1 Comment 1
qbteachmt
Level 15

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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