Jump to content

HCE definition, re-hire


Recommended Posts

Posted

We re-hired an EE midway through 2004 who had always been classified as HCE. However, since we don't have her salary history for the last years, and in 2004 she didn't make over 90K do we need to list her as NHCE for testing? It doesn't seem right, I like any insights. Thanks.

Posted

why would it not seem right? The rules only say what was the person's comp in the lookback year (unless the person is also a 5% owner) it does not matter if they were an HCE or not in prior year. and just because they only worked part of the year you do not annualize comp.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use