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Agents on commission only, how to calculate hours of service?


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Guest IRaceTA
Posted

Have a separate 401(k) plan for a group of Agents and Managers. The agents are paid on a strictly commission basis so how can we calculate their hours of service? Trying to complete the 2003 ADP test and it's failing, want to knock off NHC with less than a year of service. How can I take them off using that rule if I can't determine how many hours the agents work?

Plan document states "The number of hours of service to be credited to an employee for any period shall be governed by section 2530.200b-2(b) and © of the Labor Department Regulations relating to the Employee Retirement Income Security Act of 1974, as amended".

Help?

Kim

Posted

For your specific question, you might want to take a look at 2530.200b-3, which deals with the permitted hourly equivalencies for such situations.

Guest IRaceTA
Posted

Thank you VERY much!

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