Employee?

[Guest padmin]

A real estate management firm manages several properties and sponsors an immediate eligibility 401k plan for its employees. Several of the managed properties have an on site-custodian that works for the building and the building owners. As these custodians are the only employees in the building the managment company provides payroll services for the building owners for these custodians. ( They are on the management co payroll but not considered ees) Are these custodians now employees of the management company and thus eligible for the plan? Any help would be appreciated.

[Guest Sieve]

If they truly are not employees of the management company, then they will not be eligible for the management company's plan. Looks to me like the management company is just acting as a common paymaster--i.e., paying the salary of someone employed by another.

[PLAN MAN]

Do these custodians receive W-2 wages? If yes, what employer is identified on the W-2? Who takes a deduction for the wages paid?

[GBurns]

I do not understand who the custodians work for. Who interviewed and employed them ?

If the custodians work for the "building and building owners", what is left for the property management company to do ?

I cannot see how the property management company can manage the properties without the custodians being either ICs or employees of the management company.

If the property management company provides "payroll services" for the building owners, does that mean that the cmpany gets reimbursed for the payroll specifically ?

[Guest padmin]

I do not understand who the custodians work for. Who interviewed and employed them ?

If the custodians work for the "building and building owners", what is left for the property management company to do ?

I cannot see how the property management company can manage the properties without the custodians being either ICs or employees of the management company.

If the property management company provides "payroll services" for the building owners, does that mean that the cmpany gets reimbursed for the payroll specifically ?

Apparently the property owners reimburse the managment company for these payroll services over and above the management contract