Coverage testing when there are a bunch of work-visa employees

I don't like dealing with this issue but we are being referred a chicken/egg farm.  There are maybe 5 US citizen FT employees and maybe 20 foreigners on a work visa.

The sponsor does not want to cover them.  I'm reading that if they have US based wages they are not a non-resident alien.  Well they always have wages in the US.  They come and go frequently.

The plan will exclude those under the "part-time" rule and I realize the implications if they do go over 1000 hours and the LTPT issue.  I will also include exclude by job classification in the document.   What is helpful is that there are no owners or other HCEs to be covered by the plan.

Given no HCEs, I think I'm good on the coverage test by including the 5 US citizen FT employees but excluded the 20+ foreign workers.

Agree? I think I'm solid but don't want any surprises!

Thanks

they are still in your test. the test will pass though because the HCE group will be 0%. 

Agreed, just make sure the plan provisions clearly define the excluded class, say employees on a work visa. That keeps them out regardless of hours and LTPT rules. Coverage and NDT will not be an issue provided no HCE is ever covered.

I have a very similar situation (though less fowl-based)... but the HCE owners do intend to participate.  They also, unurprisingly, don't want to cover the visa employees.  I suppose they're out of cluck?

they can put a class exclusion in the document, and as long as testing passes with those folks as zeros in the test, its fine. same as any other class exclusion. But if the exclusion covers the majority of the NHCE, and all the HCE are in the plan, likely testing won't pass.