Here is a simple explanation of the 5 employee restriction.

If you have a farm and grow a crop, lets say tomatoes as an example. You can have as many workers as you need to plant, maintain, and harvest the crop. You can use as many employees as you need to box and ship those crops (tomatoes). When you take them inside and make ketchup or soup, you are now considered value added (since you are adding value to the original crop).

We are not adding value to the crop. We are only planting, maintaining, harvesting, and shipping a crop. Someone else, somewhere else, may in the future add value, but we are not.