Guest jusducki Posted July 6, 2011 Posted July 6, 2011 Client (Husband/wife) hired an employee who probably never become eligible due to minimum hours. Do I have to switch now from preparing an EZ to a 5500SF because of this ineligible employee? Thanks for your help.
Bird Posted July 6, 2011 Posted July 6, 2011 Still an EZ. It's based on participants in the plan, not employees. Ed Snyder
Guest jusducki Posted July 6, 2011 Posted July 6, 2011 Thanks for giving me the answer I wanted! Still an EZ. It's based on participants in the plan, not employees.
austin3515 Posted July 8, 2011 Posted July 8, 2011 Bird always gives the answer you're looking for--as logn as it coincides with the correct answer! Austin Powers, CPA, QPA, ERPA
K-t-F Posted September 26, 2012 Posted September 26, 2012 Just to clarify further... Is a "participant" an employee who works more than the hour requirement AND has an account balance in the plan? Do you count employees eligible to defer/receive a NEC but are not and do not have a plan balance as a plan participant? Its not easy being green
K2retire Posted September 26, 2012 Posted September 26, 2012 A participant is someone who has met the plan's eligibility requirements and passed their plan entry date. It is unrelated to whether or not the individual has an account balance.
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