In the wake of the Ninth Circuit's Microsoft rulings on the eligibility of independent contractors for benefits under Microsoft's plans, the DOL sued Time in the Southern District of NY last week, alleging that Time's writers and photographers are, in fact, employees, once again eligible for benefits. Time's angry response underscores the gravity of the issues and demonstrates that these questions are not soon likely to go away. See Time's Press Release at:

www.pathfinder.com/corp/tw/pr/labor

102698.html

When an employee severs employment, is he entitled to receive compensation for his earned vacation time? Even if the time would not be available to be used by the employee until the following calendar year? If the answers are yes, I would like to have know how to document the legal rights of the employee.

Thanks

My question concerns wether a defined contribution plan can deduct certain expenses from the plan itself or wether these expenses should be deducted by the plan sponsor/employer.

The employer has two plans: a defined contribution plan and a defined benefit plan. Certain participants of the defined benefit plan are allowed to participate in the defined contribution plan. As a result, some of these participants may receive benefits that exceed the section 415 limitations. Expenses such as plan amendment fees, actuary fees, reporting fees, etc. will need to be incurred to determine whether there is a section 415 problem.

Can the plan deduct these expenses or are these expenses more appropriately deductible by the employer/plan sponsor only?

When a 403(B) employer selects authorized investments can the employer also mandate who must be the broker? Can there be two brokers on the same account with the same investments?

Owner of business A purchases business B

in mid 1999. Business A has a SIMPLE IRA in

place since 1997. Business B has no plan. How are employees of business B treated for eligibility?

Must business B start a SIMPLE in '99?

Our current vacation policy is based upon individual's "year" -- hire mm/dd to hire mm/dd. 2 wks 1-7 yrs; 3 wks 8-13yrs; 4 wks 14-20; 5 wks 21+. This seems somewhat antiquated with labor shortages and need to "attract and retain" being a priority. Want to revamp policy to a calendar year basis - any suggestions?

Any suggestions for content of a handbook for a company of 23 employees? I have done a handbook with such items as mission statement, equal employment opportunity, new employees, harrassment statement/policy, insurance, software licensing, and holiday schedule. Any suggestions on topics I've missed?

I am aTPA - I have prospective client interested in adopting a profit sharing plan and we have a little trouble in determining eligibility criteria. All our plans thusfar have based criteria on hours worked (i.e., 100 hours = 1 year of service), but this company sells carpeting and the majority of the employees are carpet layers. They do not work according to a regular schedule and are paid by the job rather than the hour. We cannot assign a set number of hours worked to each employee.

How do we determine who has a year of service (1,000 hours), or does anyone have any ideas on how we might instead set criteria on an elapsed time basis and how would that work?

Appreciate any input - thanks.

You are missing some really important material if you don't read my messages on "rollover transactions" posted on the 403(B) Message Board.!!

This topic has been closed on the 403(B) message board. Please post your thoughts on the 401(k) board. Thanks, brookdalestsa.

[This message has been edited by brookdalestsa (edited 10-31-98).]

[This message has been edited by brookdalestsa (edited 10-31-98).]

I'm looking for articles about in-service distributions--how many plans allow them, how many participants take advantage of them, pros and cons, etc. Anyone know of a good place to look? Thanks!

dan.marshall@aexp.com

I am looking for information on IRS

rulings concerning a participant's

ability to change a payout option under

a rabbi trust based nqdc plan prior to

the initial payment date. I have heard

that their was a ruling in mid-1997 but

have been unable to verify such.

I have a group that wants to start a 401k plan. The group includs 5 C corps, 1 S corp, and a 501C3. I asked for detailed information about ownership, principals ownership in other businesses and the sharing of employees and capital. They don't percieve a problem & did not provide. Does anyone have information/articles that outlines control group issues?

What is the earliest age you can withdraw

funds without penalty if retired.

As an example: Retire at age 55 and withdraw

money from account.

What code section, reg etc., authorizes these contributions and describes how they are treated for testing and other purposes?

Any suggestions on good reference to correct excess contributions for ADP and ACP after SBJPA 1996? Company makes cutbacks during the course of the year, and it is having hard time projecting those HCEs who will have the highest excess dollar amount (as opposed to percentage).

Assume that you planned to charge $500 per year for 10 participants as a TPA for a cafeteria plan. Could you charge the employees each $25 and agree to charge the employer $250, but not to exceed the employer's "experience gain" for their plan?

Does anyone have software or other suggestions for calculating the maximum contribution amounts for sel-employed businesses, particularly in cases where there are multiple plans with a 401(k) option and an integrated allocation formula.

Practically speaking, what recourse does an employee have who disagrees with the method of ADP cutbacks? Assume the method is incorrect.

My question..

Are you entitled to pay while off work due to a pregnancy with complications such as a combination of health problems which include Diebetes, High blood pressure less than Preclampsia, Carpal Tunnel syndrome, excessive swelling and debilitating pain as a result of pregnancy induced Fibroid tumors, enhanced rhuematoid arthritis due to excessive edema and a Doctors recommendation in two (2) documents stating patients enability to return to work due to the above complications.

Thank You.

Currently, our company asks that employees or their dependents who use tobacco products, pay a higher percentage for their insurance contributions. example: Single non-tobacco user pays $3.35 per week, Singer tobacoo-user pays $10.00 per week. With the implementation of the HIPPA rule, we heard through the "grapevine" that is now discrimatory. Please advise with any legal references. Thank you