Schedule MEP, and Working Owner

Question from Schedule MEP

2e Does the plan include any individuals not participating through an employer or who are individual working owners?  Yes or No

Does anyone have information on the working owner questions on Part II of the Schedule MEP? 

I have read the instructions to the schedule, as well as the referenced CFR. 

Assuming a small 'closed' MEP of business entities, where each entity is a participating employer on the legal plan documents. 

Entity A - S-Corp has two owners who are part of the plan, along with a number of employees. 

Entity B - LLC, no S-corp election, one member owner, no other employees, self employment earnings, also participates in the plan

Entity C - sole proprietor, no other employees, self employment earnings, also participates in the plan. 

Entity D - LLC, no S-corp election, one member owner, several other employees that are part of the plan, owner has self employment earnings and also participates in the plan

I would think the answer would be yes for all. The definition of working owner doesn't preclude the business from having other employees, so even Entity A has a "working owner" two in fact. Am I understanding this correctly? 

If there is a MEP and the owners are NOT part of the plan (do not have earned income, no contributions etc) then I would guess the answer to the question on the schedule would be No. 

I appreciate any light someone can shed. Thanks! 

Here’s the rule’s defined term for “working owner”: 29 C.F.R. § 2510.3-55(d)(2) https://www.ecfr.gov/current/title-29/part-2510/section-2510.3-55#p-2510.3-55(d)(2). (In reading the rule, recall that it’s an interpretation of ERISA title I’s definition for an employer.)

Observe that an owner need not have any minimum hours of service to be treated as a working owner. It’s enough that an owner has wages from the employer or self-employment income from the deemed employer.

A confusion might result from the compound question’s use of a negative and a disjunctive.

And that’s ignoring the sentence’s logically inconsistent uses of plurals and singulars.

Although my thinking might be worthless and is useless, I concur with your thinking that A, B, C, and D each describes a “working owner” as the rule defines that term.

Is there time to ask the Office of the Chief Accountant what EBSA seeks with this question?
 

Thank you Peter. It is heartening to know someone else noticed many of the same things and that you concur with my conclusion. With 2023 as the first year with an actual MEP schedule, and not an attachment, I had not given the particulars of some of the questions much thought before now. 

I have never tried contacting OCA, and honestly don't know how fruitful it would be for me. But if someone else wants to try, I would be interested to hear what information they receive. 

Here is their contact information for anyone curious. 

https://www.dol.gov/agencies/ebsa/about-ebsa/about-us/organization-chart#oca

I can attest to the fact from long experience that Michael is a good man--

I would call him or Scott or Marcus as they each could probably help you.

BOB