Ace the Certified Payroll Pro Test 2024 – Payroll Masters, Your Time to Shine!

The main requirement for a benefit plan to qualify for tax-favored status is that it must not discriminate in favor of highly compensated employees. This means that the benefits provided by the plan should be fairly distributed among all employees, including both highly compensated employees and non-highly compensated employees. This rule ensures that the benefit plan is not used solely for the benefit of a select group of employees, which could result in tax implications. Options A, B, and D are incorrect because they do not address the key requirement of non-discrimination towards highly compensated employees. Unlimited benefits, full insurance coverage, or including all eligible employees do not necessarily guarantee compliance with the non-discrimination rule for tax-favored status.