DOT is last day or first day of PY questions

Two separate questions: (PY 7/1 to 6/30)

1)  PSP has last day requirement only.  If someone's last day worked is 6/30, do they a PS allocation?  Why or why not?

2) For 5500 participant count.  If last day worked is 7/1, are they considered 'active' for 5500 purposes at BOY?  Why or why not?

IMHO: 

1) Participant receives a PS allocation because they worked on the last day 06/30 and

2) They are working (actively employed?) on the first day of the plan year (07/01) so I say they are included as ACTIVE in the 5500 parrticipant count. 

I don't think it's entirely clear either way. The document we use actually has a checkbox for whether or not a participant who terminates employment on the last day of the year will be considered to be actively employed on the last day of the year for purposes of satisfying allocation conditions.

I am with pmacduff on this one: Yes to PS allocation, and Yes on active status.

Agree with C. B. Zeller on the plan document. Our provider also utilizes a box for whether a terminated participant is counted as employed for PS purposes if they terminated on the last day. I'd say, if there's nothing in your document on that, best to count as satisfying the last day condition since they technically were employed on the last day, even if only for a portion of that day.

Not so sure about the 5500, but if there's any doubt it's probably best to just count them as active.

I don't see how someone who is being paid for work on 6/30 isn't employed on that day for the last day allocation. 

If the document says "no"  in the fact set like described in other comments I can live with that plan provision.  However, if there is no explicit provision like that how can you ever say someone being paid to work on 6/30 wasn't employed.  

The harder one is what will happen in 2022 which 12/31 will fall on a weekend.   If the place of employment is not open on weekends and the person works on the last Friday of the year are they employed if that is there termination day?  Or do they have to write the letter of resignation to day they terminate as of 12/31?  

ESOP Guy we actually had that come up in a large plan audit (the whole 12/31/last day thing).  In our case, the plan had been consistant in current and prior years whereby they counted anyone employed on the last "working" day of the year when the office was open as being "employed" on the last day and gave them an allocation.  The client had someone term on 12/30 (it wasn't the last working day that plan year) and they didn't get an allocation.  The auditors had no problem with it. 

While I know it can be dependent on which auditor you get, I've always advised the client to be consistant and as you mention - follow the plan doc!