Growing employers retain treatment as small employer
(i) In general If— (I) an employer was an eligible employer for any year (a “qualified year”), and (II) such employer establishes a simple cafeteria plan for its employees for such year,
then, notwithstanding the fact the employer fails to meet the requirements of subparagraph (A) for any subsequent year, such employer shall be treated as an eligible employer for such subsequent year with respect to employees (whether or not employees during a qualified year) of any trade or business which was covered by the plan during any qualified year.
(ii) Exception This subparagraph shall cease to apply if the employer employs an average of 200 or more employees on business days during any year preceding any such subsequent year.
(i)In general#
If—
(I) an employer was an eligible employer for any year (a “qualified year”), and
(II) such employer establishes a simple cafeteria plan for its employees for such year,
(i)(I)#
an employer was an eligible employer for any year (a “qualified year”), and
(i)(II)#
such employer establishes a simple cafeteria plan for its employees for such year,
(ii)Exception#
This subparagraph shall cease to apply if the employer employs an average of 200 or more employees on business days during any year preceding any such subsequent year.