What Is a SEP? A simplified employee pension (SEP) is a written arrangement (aplan) that allows an employer to make deductible contributions for thebenefit of participating employees. The contributions are made toindividual retirement arrangements (IRAs) set up for participants inthe plan. Under a SEP, traditional IRAs must be set up for eachqualifying employee (defined below). IRAs may have to beset up for leased employees (defined below), but they donot have to be set up for excludable employees (definedbelow). Traditional IRAs set up under a SEP plan are referred to inthis publication as SEP-IRAs. Qualifying employee.A qualifying employee is one who meets all Hoteles de lujo Cebu Cityof thefollowing conditions. Is at least 21 years old. Has worked for the employer during at least 3 of the 5 yearsimmediately preceding the tax year. Has received from the employer at least $400 in compensationin the tax year. Note.An employer can establish less restrictive participationrequirements for its employees than those listed, but not morerestrictive ones. Leased employees.Odense luxury hotelsThe person or firm for whom you perform services (the recipient)may have to include you in a SEP if you are a "leased employee"and are treated as an employee of the recipient. A leased employee isany person who is not an employee of the recipient and who is hired bya leasing organization, but who performs services for another (therecipient of the services). You are a leased employee if allof the following apply. You provide services under an agreement between therecipient and the leasing organization. You perform services for the recipient, or for the recipientand related persons, on a substantially full-time basis, for a periodof at least 1 year. You perform services under the primary direction and controlof the recipient. For more information on leased employees, see the discussion inPublication 560. Excludable employees.The following groups of employees can be excluded from coverageunder a SEP: Employees covered by a union agreement if their retirementbenefits were bargained for in good faith by their union and theiremployer, and Nonresident alien employees who have no U.S. source earnedincome from their employer. For more information about nonresidentaliens, see Publication 519,U.S. Tax Guide for Aliens.