The IRS has developed an extremely helpful one-page tax form that meets all the requirements of a SEP plan. It does not require any special document preparation other than simply filling in a few lines on the form, signing it, and dating it.
Are you eligible to use Form 5305-SEP? To be able to use Form 5305-SEP, you must meet the following requirements:
You should note that even if you fall into one of the categories above, you can still set up a SEP; you just can't use Form 5305-SEP.
Do not file Form 5305-SEP with the IRS. The form is merely intended to help you set up a SEP. You should fill it out, sign it, and date it and keep it with your business records. Once you have filled out the form, you don't have to do anything else with it, which means that you do not have to file Form 5305-SEP with the IRS (in fact, you should not file it with the IRS), and you do not have to file any annual information returns (as most other types of plans are required to do).
Once the plan is set up, you must communicate information about the plan to your employees