Control Group - Restaurants

[coleboy]

Hi,

We are taking over a control group of restaurants that were formerly under a PEO plan. They said that this plan is only covering employees at their headquarters plus restaurant managers. Eligibility is 3 months of service.Is it possible to set up a plan this way and not include the other employees ie waitstaff,cooks, dishwashers, etc?

 

 

[Lou S.]

If it passes nondiscrimination test you can.

[K2]

Hard to imagine that it would pass coverage

 

[Doghouse]

I have a plan that is similar to this - the trick is that none of the people are HCE's.

[ESOP Guy]

It MIGHT pass coverage if you test all the Otherwise Excludedables as a separate group and just about all the excluded people don't ever stay a year.  Restaurants have terrible turnover so it is possible if you test the people in those two groups..  But if the demographics change on you there better be a plan for a coverage/discrimination failure. 

 

[My 2 cents]

33 minutes ago, ESOP Guy said:

It MIGHT pass coverage if you test all the Otherwise Excludedables as a separate group and just about all the excluded people don't ever stay a year.  Restaurants have terrible turnover so it is possible if you test the people in those two groups..  But if the demographics change on you there better be a plan for a coverage/discrimination failure. 

 

I don't work on ESOPs.  Is Excludedables an ESOP term?

[ESOP Guy]

I have heard people use it in training sessions back in my 401(k) days. 

Although I do see I also spelled it wrong.