Compass Retirement Consulting Group, Inc.
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Nova 401(k) Associates
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Retirement Plan Legal Specialist Pentegra
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Central Pension Fund of the IUOE
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Retirement, LLC
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Nicholas Pension Consultants
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Central Pension Fund of the IUOE
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Retirement Plan Relationship Manager ERISA Services, Inc.
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Prime Pensions, Inc.
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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
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Bates & Company
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Carpenter Morse Group
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Trucker Huss, A Professional Corporation
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United 401(k) Plans, Inc.
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Question 82: Company R decides to put all of its employees, including the owner-president of the company, on the payroll of a staffing firm. It previously sponsored a top heavy plan, which was terminated. The staffing firm has a plan that is not top heavy. Can Company R's employees become a part of the staffing firm's plan without providing top heavy minimum contributions? |
Answer: Let's start with the notion that it is 99.5% likely that as a matter of law the owner of the company legally is not an "employee" of the staffing firm. The Professional and Executive Leasing case from the '80s makes that abundantly clear. So top heavy minimum contributions are the least of your worries. (These issues are discussed in more detail in Chapter 4 of my book, Who's the Employer?.) |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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