Gross Comp for HCE's?

[Guest richez]

To determine HCE's, I've been instructed to use "gross compensation". Does this include things like moving expenses, company use of vehicle, life insurance, etc? We have an employer who payrolls totalled $80K in compensation, but these additional items will put him over $90K.

[Archimage]

You use 415 compensation to determine HCEs so yes would include those additional items.

[E as in ERISA]

It's usually your 415© definition of compensation under the plan. Generally includes any taxable amounts. Therefore, qualified moving expenses are usually excluded; nonqualifed included. Company use of a vehicle under an accountable expense reimbursement plan would usually be excluded; under a nonaccountable plan included. Excess group life insurance is usually included (but excluded if they define compensation based on that for withholding).

[Archimage]

Basically if these benefits are taxable income then they are included. As "E" noted, the problem will be figuring out whether or not the moving expenses are qualified or nonqualifed and whether or not the reimbursements are non-accountable or accountable.