Leased Employees

[Guest Celtics]

All of a company's employees (including the owner) are leased employees. During the first 10 months of the year, they are leased thru Company A. Company A pays the employees and submits taxes on their behalf. The employees participate in the Leased Company's MEP Plan. The employer funds the MEP with a 7.50% contribution. During the last 2 months of the year, the employees are leased thru a different leasing company that does not have a plan. If the employer also maintains a plan, can he offset any required and/or discretionary contributions that are due to his own plan by the contributions he made to the MEP?