A covered employee is now any employee of the organization
What the document says“the term `covered employee' means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.”
The section rewrites section 4960(c)(2) of the Internal Revenue Code of 1986 so that a covered employee is any employee of an applicable tax-exempt organization or a predecessor, and any former employee of one who was an employee in a taxable year beginning after December 31, 2016.
What the document actually says“the term `covered employee' means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.”
The term covers any worker at such a group. It also covers a former worker. That reaches back to tax years after 2016.
It includes people who worked at a group the body took over. The tax it feeds falls on very high pay. That tax is not indexed here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.