Key Employee vs. Officer
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What is a key employee? Are vice presidents officers as well as key employees, or just officers?
Answer
Code Section 416(i).
A key employee is an employee who at any time during the year is:
(1) an officer of the employer having an annual compensation greater than $150,000 (for 2008), indexed for inflation;
(2) a 5-percent owner of the employer; or
(3) a 1-percent owner of the employer having an annual compensation from the employer of more than $150,000.
Cite: Code Section 416(i).
I believe the $150K goes to $160K for 2009.
Answer
If this is on the Form 990, they have to meet three tests.
1) Make more than $150,000
2) Have responsibilities as described in the 990 instructions (see page 49)
3) Is one of th e20 employees with the highest reportable compensation from the organization and related organizations.
Comment
Archie gave the definition for pension plans. If you need to know for another reason, there may be a different definition.