are sep contributions deductible
How much of the SEP contributions are deductible? The most you can deduct on your businessâs tax return for contributions to your employeesâ SEP-IRAs is the lesser of your contributions or 25% of compensation. (Compensation considered for each employee is limited and subject to annual cost-of-living adjustments).he same limits on contributions made to employeesâ SEP-IRAs also apply to contributions if you are self-employed. However, special rules apply when figuring the maximum deductible contribution.