FAQ 998: HCE/Key - Terminated owner but family members still working


This plan has a termd owner but the son is still working there. They are linked as family but the owner isn't showing up on the HCE run at all and the son is not showing as HCE/Key.


Since this is a terminated owner, remove the Terminated date (TERMIN)in the DATE screen and code the owner with a Participation Status code as 'I - Inactive'. By removing the date of termination and changing the status code to 'I' the system will handle the family attribution issues when it comes to HCE and Key determination.

Owners who are no longer employed, we look at as inactive employees since they likely have some influence on the company but no longer draw income.