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Guest Keith N

Leased EE's - HCE definition

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Guest Keith N

If a leased employee is not considered to be an employee for pension purposes until they complete a year of service, does the compensation which they earned during that first year count in determining if they are an HCE in year 2 or is year 2 considered there first year of service and therefore they could not be and HCE in year 2. For example if a leasted EE earned 100K in year 1 and therefore they would be considered an EE in year 2, would they be considered an HCE in year 2?

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