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> Top 20%
RJF
post Mar 1 2006, 01:10 PM
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I know that Relius calculates how many will be counted in the top 20% for the following year, but does the system actually tell you who gets to be excluded in the ADP test as a HCE? In other words by hand, I know who is included and who is not so is it up to me to code them as an NHCE so they won't show up as a HCE?
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Tom Poje
post Mar 1 2006, 03:29 PM
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when you create a new plan year, the system will grab the highest paid people and do everything for you. (hopefully you have updated your table if there has been a change in the comp limit)
if you look in census/compliance under highly compensated - prior year you will see a bunch of different possibilities.
now, areas where you may have to 'switch' something -
rounding - any reasonable may be used, so if 20% was 6.6, there would be nothing to stop you from always rounding down. not sure what Relius does. this might make a difference in testing.
ties - if two ees have the same comp, you gotta pick someone (preferrably the guy deferring 0?)
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