Tom Poje Posted December 18, 1998 Posted December 18, 1998 Nondiscrimination Module The NHCE concentration % may be incorrect. Terminees with less than 500 hours are being included in the concentration test, but not in the ratio percentage test. example: 3 nhces, 1 hce. one NHCE terminated with less than 500 hrs, one nhce terminated > 500 hrs. terminees do not receive allocation. while cross testing I get a ratio % of 1/2 divided by 1/1 but my concentration % is showing as 3/4 = 75%. It should be 2/3 = 66%, or at least that is my understanding of the regs. This may cause a plan to say it passes, when in reality it fails. This is the rate group report on an HCE. .............. create new plan from existing plan (including employees) have a profit sharing plan. created a money purchase plan, and copied existing employees. Status code and status date do not get copied, so have to re-key terminees status code and date! also, participants who I deleted from the prior year magically reappeared! so I had to delete them from the money purchase. ......... census request I am sometimes 'rented' out, so to speak, to do Quantech training. No, I am not working for Quantech, this started as part of something I do for the Southern Users Group. Anyway, I was discussing the top-paid group calculation for HCEs. One of the items involved is hours - the system checks to make sure ees worked an average of 17 1/2 hours a week. (e.g. an ee who quits 1/5 with 20 hours is considered in the top paid group count because he averaged over 17 /12 hours a week. [assuming he is over age 21, and has worked at least 6 months in prior year]) One of the trainees pointed out that the census request asks for the following codes: 0 = <500 hrs 1=>500 but < 1000 hrs 2= >= 1000 hrs I hadn't thought about it before, be he is correct, if all you go by is a simple code like that rather than actually hours, your top paid group count will be incorrect. Most of the time this won't make a difference, but be careful because it might! see the trainer gets trained! this is not a bug, but something to watch out for. The other problems have been reported to Quantech, but I figure this is a good spot to make other people aware of 'possible' bugs. I call them possible bugs, because there is always a chance I coded something wrong, although in the examples cited this seems doubtful.
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