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Question: 1 / 400

What is the required number of hours a temporary employee must work to receive benefits under a client's retirement plan according to the "leased employee" rule?

1,000 hours

1,200 hours

1,500 hours

The correct number of hours a temporary employee must work to qualify for benefits under a client's retirement plan, based on the "leased employee" rule, is 1,500 hours. This specific requirement is in place to ensure that employees who are considered "leased" or "temporary" have a minimum level of involvement with the employer to warrant eligibility for plan benefits.

The "leased employee" rule is a part of Internal Revenue Service (IRS) guidelines that recognize certain temporary employees as leased employees, thereby extending specific employee benefits to them, depending on their work hours. The requirement of 1,500 hours is designed to align with ensuring that only those who have a substantial and prolonged engagement with the employer qualify, thereby preventing short-term or sporadic workers from gaining access to benefits that are intended for employees who have a meaningful relationship with the organization.

The other hour requirements listed do not match the IRS standard for leased employees, which is set at the 1,500-hour threshold, highlighting the importance of understanding these specific regulations and their implications for temporary workforce management.

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2,000 hours

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