True or False: An employee with 2% ownership in one corporation and 4% in another qualifies for the 5-percent owner test.

An employee must own at least 5% of a company's stock to meet the 5-percent owner test. In the scenario presented, the employee holds 2% ownership in one corporation and 4% in another. Even though the employee has stakes in two different companies, the individual ownership in each does not combine to meet the 5% threshold in either corporation. For the test specifically, the focus is on the ownership percentage in the context of each separate entity rather than aggregating ownership across different companies. Therefore, the assertion that the employee qualifies for the 5-percent owner test is false.