possible missed deferral opportunity

Company sends out an email to all employees before the entry dates to notify them that it is time to enroll or change their elections.   Eligibility is one year (1,000 hours) and then enter on 1/1 or 7/1 following.    A key employee's wife who is part time, was eligible for the plan as of 7/1/2020.    She did not enroll in the plan, and administrator missed her in the 2020 safe harbor calculation because of her part time status and didn't realize she worked more than 1,000 hours in 2019, she worked 936 hours in 2020.   Her date of hire was 1/7/2019 and she worked 1, 039 hours in 2019.

Is the email that was sent enough proof that she was notified? or is a corrective contribution needed.   They don't individually notify anyone  and never have had an issue. 

Not an answer to your question, but a best practice is to require anyone who does not want to participate to affirmatively make that election in some fashion.  If they don't make an election, keep bugging them.

So company email is sent to all employees and it is up to the employee to figure out if they are eligible to enter as of the next entry date and then take action? Is that considered notification? I could make the argument if I had to but would not be overly comfortable/confident that it would fly. You mention SH - does the plan provide the notice (or did they stop)? The SH notice - if sent and if this person rec'd - is likely a better argument for notification of deferral eligibility.

Agree with BG on best practice.

Yes, they are still proving the annual safe harbor notice and they email that to all the employees too 

Is the company tracking that the e-mails are successfully delivered and read?

that i'm not sure of, but the plan has always been clean and no problems.   The administrator seems to be on top of things and have never had any issues.    

5 hours ago, Chippy said:

Is the email that was sent enough proof that she was notified?

This is a question for the employer's counsel, IMO.  Is the employer reasonably certain the information was received?  Are the notices sent to company e-mails or personal e-mails?  If they are going to a home address, they must give consent first, I believe.

notices are sent to company emails.    Does it make a difference that this is the wife of a senior partner?