Leased Employees and Small or Large Plan

[KateSmithPA]

I have a feeling this is a stupid question but I am going to ask it anyway.

Are leased employees counted in the beginning of year participant count for purposes of determining if a plan is a large plan or a small plan?

Thank you.

[ETA Consulting LLC]

Sure, but you have to remain cognizant of the definition of "leased employee". Until an individual meets the "performing services on substantially a full-time basis for a year" condition, they are not considered employees of the recipient.

Good Luck!