Contributions provided to leased employees under a recipient employer’s plan can be taken into account when performing compliance testing for the leasing organization’s plan.

A multiple employer plan, sponsored by the leasing organization, may include all the leasing organization’s recipients.

Substantially full-time service means 1,500 hours in a 12-month period (or 75% of the customary hours in that job position, if less).

When a common law employee becomes a leased employee there is no severance from employment.

Whether the recipient has the right to hire or fire an individual is a relevant factor in the primary direction or control test in determining whether the individual is a leased employee.

Both a multiple employer plan sponsored by a leasing organization and a single-employer plan sponsored by a recipient would aggregate contributions from both the leasing organization and the recipient for computing the IRC §415 limit.

Years of service with both the leasing organization and the recipient are aggregated if they both are participating employers in the same multiple employer plan.

Years of service with both the leasing organization, during which the employee is leased to the recipient, and with the recipient are aggregated if the recipient maintains a single-employer plan and the individual meet the leased employee requirements with respect to the recipient.

The leased employee is included in the recipient and the leasing organizations single-employer plans for HCE determination.

A multiple employer plan, sponsored by the leasing organization, must perform coverage testing separately for the leasing organization and the recipient.