I'm not sure what the whole story is, but I got a call from a broker asking if a company can put in a plan to cover its employees if 100% of the employees are leased. If they meet the definition of leased employee under 414(n), then they are basically treated as employees of the recipient for plan purposes, right?

The employer wants to cover the employees under the plan. Are there any issues?

You are on the right track. Most of the problems come from trying to exclude leased employees.

They are normally included. Derrin Watson's book "Who's the Employer?" has a great section on this. And so does the ERISA Outline bu Sal Tripodi.