July 23, 2020
If our only reduction was due to one death, will we be able to qualify for the EZ?
Posted by Armanino Financial Advisory Team
That would qualify as an FTE Exception, so you would meet the second sub-test in the second criterion of the EZ Form qualification tests. However, you must also meet the first sub-test in that criterion that you did not reduce annual salary or hourly wage of any employee by more than 25% during the Covered Period as compared to Q1 2020.