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Mar 1 2006, 01:10 PM
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#1
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Registered User Group: Registered Posts: 26 Joined: 5-December 00 Member No.: 5,848 |
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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Mar 1 2006, 03:29 PM
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#2
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Moderator Group: Sitewide Moderator Posts: 3,933 Joined: 26-August 98 From: Florida (land of hot humid summers) Member No.: 1,560 |
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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