Leased Employee Question

[Dougsbpc]

Suppose you have a client that has a few leased employees and you determined that they are substantially full time, at the direction of the recipient etc. In other words they will need to be covered under the employers (recipients) plan.

If the plan sponsor pays $50k per year to the leasing company, it is likely the employee only earns about $40k per year. How does the employer report this to the administrator? Do they need to obtain something from the leasing company showing the real wages of the leased employee (maybe a W-2)?

Thanks.

[sklappy584]

No replies yet?  I had this situation before.  We had to obtain the actual compensation from the leasing company.  It was a pain.  If the leased employees participate in the leasing company 401(k) plan you will also need salary deferral (and 125) information as well.