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Test Question:

ABC, Inc. has two employees; John and Jane. John and Jane are not related. John owns 95% of the ABC, Inc. and Jane owns 5% of the company. John received a salary of $60,000 during 2012 and Jane received a salary of $115,000 in 2012.

Who are the HCE(s) in 2013?

A) John

B) Jane

C) John and Jane

D) Neither John nor Jane

There are some very important concepts in this question.


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years ago (2007) I worked on a plan that we did some preliminary testing.

one individual owned exactly 5% and was deferring 15%. Based on whatever data they sent- maybe it was 9 months of comp,

their projected comp was 100,000.14

I told them I don't care how they handle it, just make sure that the person's comp did not go over the 100,000, even if the person comes to work in the morning and finds 14 pennies sitting on his desk one day.

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  • 3 weeks later...

I agree that it is not fair to the QPA to have to take and pass both ERPA exams to become an ERPA, but an ERPA is automatically designated as a QPA.

Having obtained both designations, I can honestly say the ERPA exams were much easier.

I can certainly understand the IRS' position that they want all their EAs to start on an equal footing, but that doesn't mean I have to like it.

Oh, and by the way, I'm the moderator of this message board.

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  • 1 year later...

I am self employed as an Enrolled Agent. I am considering the ERPA designation. Is it worth it? what are the pros and cons? For those who are EAs, how would you compare the exams? easier or harder?

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  • 4 months later...

But the tests themselves have changed quite a bit as well. I got my QPA in 1991. You think it's the same test today? Of course not. But I don't "rank" people based on when they earned the designation.

I do. I am not saying that my approach is better, but I would like to see more depth of understanding from members who hold these designations. It is typically not there in recent designees; at least the ones I come across.

Congrats. You know how to use funding methods to calculate benefits that are no longer applicable

Just kidding but I agree it's definitely changed. Got my CPC a few years back and the exam frankly was a joke compared to the old format.


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