SJ, Inc. covered the following employees under a qualified plan. Joan, a 9% owner and employee with compensation of $30,000. Lind, a commissioned salesperson with compensation of $160,000 last year (the highest paid employee). Reilly, the chief operating officer, who had compensation of $137,000 last year but was not in the top 20% of paid employees. Garner, the president, who was in the top 20% of paid employees with compensation of $195,000.

Which of the above people would be considered as a highly compensated employee? Why.

Which of the above people would be considered as a key employee? Why.