Separate Lines of Business

Who would be best to make the determination whether or not we could test two plans of a controlled group under a separate lines of business?   Same ownership- separate companies located 150 miles apart.

Erisa Attorney or clients CPA?

Does that allow you to have one SH plan and one non Safe Harbor plan and what testing would have to be combined?

Pat

The employer must file Form 5310-A to claim QSLOB status after which you would treat each QSLOB as a single employer for coverage and nondiscrimination.  Who the employer deems is most qualified (ERISA counsel or CPA) to help them make that determination is up to the employer. However, if legal counsel is willing and able to render an opinion, I would say that carries more weight than a CPA expressing their opinion. Note geographic differences are only part of the QSLOB criteria.

The other requirements are very important.  I have over the years been shocked at how many QSLOB determinations fall apart on the 50 employee requirement alone. 

Yes, I am worried about the 50 employee rule.     Am I correct that you exclude employees with less that six months of service from the count?  If so we only have 52 eligible with a quarterly entry date, no service.  I thought I also read something about having to have 50 on every day of the plan year?

That is correct, each day of the plan year. 1.414(r)-4(b) "A separate line of business satisfies the 50-employee requirement of § 1.414(r)-1(b)(2)(iv)(B) for a testing year only if on each day of the testing year there are at least 50 employees who provide services to the separate line of business for the testing year and do not provide services to any other separate line of business of the employer for the testing year within the meaning of § 1.414(r)-3(c)(5)."