I'm advising a multiple employer plan (MEP) in which unrelated ERs participate. One person works for two of these unrelated ERs. As to one such ER she is an HCE by virtue of ownership interest. She is not an owner in the other ER and does not earn enough from that other ER to be an HCE.

In testing these two ERs separately, is she considered an HCE for both ERs or just the ER in which she has the ownership interest that renders her an HCE? I'm thinking that she'd be an HCE only with respect to the owner in which she has an ownership interest, as that is consistent with the notion of separate testing in the first place. However, I'm wondering if anyone knows of a rule/ruling where consistency did not win out?

Since no one else replied, I will say that I agree with your "notion of separate testing" for this purpose. I wish I could give you a cite supporting that position, but as you have probably found, there is very little in the way of clear guidance for issues like this under MEPs. I also note that how you determine key employees is another area that I find to be "grey". Do we have an issue of separate testing here also? Anyway, hope this helps (I suspect not.).