How Can I Define A Resident Alien

[RatherBeGolfing]

1 hour ago, Kaizen401k said:

OASDI taxes are paid by all employees.

Nobody who would be excluded by the new amendment has any funds withheld or contributed on behalf them. This is a proactive measure so it doesn't become a problem in the future.

How do places like McDonalds and Jack-In-the-Box take care of this? 

 

By not breaking the law...

[Kaizen401k]

It sounds like you've never been to either. Good for you and your health. They hire people who are not authorized to work in USA, which is illegal.

[K2retire]

There is something very ironic about a business trying to find a legal protection for not covering people that they are hiring illegally. 

[Mike Preston]

I'm about to lose it.  This whole discussion is nothing more than an attempt to implement something which is not very thinly veiled discrimination against a class of human beings least able to protect themselves.  I wouldn't entertain a discussion of how to illegally discriminate against those over 40 (or under age 30 for that matter) and I applaud the courts when they bitch-slap political parties for implementing policies which attempt to disenfranchise and/or marginalize a class of voters.

In the vast majority of cases where a business is found guilty of hiring illegal workers most of those illegal workers will have come from a single country.  And if that isn't prohibited discrimination based on national origin I'm a monkey's uncle. Now don't go nibbling around this issue by trying to say that one can pass muster if the illegal population is evenly split between two different countries.  One can't.  Because discrimination against those who are from a country (any country) other than our own is still illegal.

 

[Kaizen401k]

There are people from that country who are both legal and other. The country they're from is irrelevant, whether they are legally authorized to work is relevant. Age is not a factor as long as they're over 18, anyone who is other than legal obviously can't vote so I don't get why your'e bringing that up?

You've done nothing but criticize when all I've asked for is a better definition of how to exclude employees with invalid SSNs without using those exact words. Can you help with that instead of claiming I'm discriminating against immigrants? 

Immigrants made this country great and will continue to do so. I simply want a way to help my client protect themselves from complexities arising from someone who could disappear at any time enrolling in the 401k.

Thank you GMK and Mojo. I believe you've answered the question and I have everything I need to make the amendment. I sincerely appreciate your help.

[MoJo]

On 1/13/2017 at 6:04 PM, My 2 cents said:

If they are working in this country, legally or not, then for coverage and non-discrimination testing purposes, they are NOT "excludible".

Being "included" for testing purposes is different than being excluded from participation.  Yes, unless there is a "statutory" exclusion, they must be included for testing, but in any event, absent a specific "protected" class designation (through some legislation), you can exclude them from participation.  I've not seen undocumented aliens defined as a protected class anywhere....

Bottom line, if you employ them 1) yes, you have to play by the tax collection rules; 2) you are breaking the law; and 3) you can, if you want to admit to item "2)" you can exclude them from participation (at the risk of testing issues).