Which of the following factors does NOT determine a leased employee?

A leased employee is defined in the context of retirement plans and tax regulations, particularly under Internal Revenue Code Section 414(n). For an individual to be considered a leased employee, certain criteria must be met.

The key criteria include providing services full-time for a specific duration (generally over one year) and receiving a fee for those services from the recipient employer. Control over the individual’s services also plays a role, as it indicates whether the recipient employer has significant authority over how the work is performed, reflecting an employer-employee relationship under certain conditions.

Being directly employed by the recipient employer is what distinguishes a leased employee from a standard employee. If the individual is directly employed by the recipient employer, they are not classified as a leased employee. Instead, they would be considered regular employees of the organization.

Therefore, the correct answer is the factor that states being employed directly by the recipient employer does not determine a leased employee, as leased employees are not considered direct employees of that employer but rather work under a leasing arrangement.