Compliance Testing for a Co-Op

We have a client that turned into a co-op, so all 14 employees own an equal percentage of the company (about 7%).  So technically all employees are greater than a 5% owner and therefore an HCE.  Am I correct in saying that there would be no compliance testing?  I just want to make sure.

Thanks!

If the employer is a cooperative described in subchapter T [Internal Revenue Code §§ 1381-1388], consider how that might affect patronage and ownership stakes.

Are you sure there is no owner beyond the employees?

Are you sure the owners have equal stakes?

If not already done, the plan’s administrator with your help might check relevant facts and assumptions with the lawyer who wrote the organizing documents and the accountants who do the cooperative’s financial-statements accounting and income-tax accounting.

If it’s so that the employer has fourteen employee-owners with 7.1429% each, your premise about 5%-owners seems right to me; but I am not knowledgeable about the tax law conditions involved.