Controlled Group

[Guest Mike Schwing]

Owner A - owns 100% of C-Corp. A - is only employee except

for union employees

- owns 100% of Sole Prob B & has two employees

- owns 100% of Sole Prop C & is only employe

Some of Corp. A's union employees also worka small number of hours for Company B on occasion.

The plan is treated as a controlled group of corporations for plan purposes.

The plan document excludes union employees by class; however, do these union employees have to be included for the time they work as non-union employees?

If an employee has to complete a year of service to enter the plan and an employee works 2000 hours as a union ee but only 100 hours as a non-union ee do they qualify under the year of service rule and become eligible for a profit sharing contribution based on their non-union compensation?

[JanetM]

Can't give you a code cite for reference - here is what we do.

Have same situation. But in out case ee's transfer between union and non-union jobs within the control group (weather in same company or different company - treated the same)

Time for vesting is counted from date of hire - for union who transfer to nonunion job - if they have enough service they enter plan immediately. For profit sharing plan contirbution we count only the compensation earned as non union worker.

For the vesting - we use all service. Non union worker who changed to union would still have to work 7 years to be vested.