Guest AJM 34 Posted October 9, 2007 Posted October 9, 2007 Plan Year 2006 A Highly Compenated Employee terminated on 11/16/2005, but was paid a commision in 2006 (3/24/2006) that was earned in 2005. My question is do I include this employee in my 2006 ADP Test? I am aware of the 2 1/2 month rule, and the commisions were paid 2 1/2 months after severace from employment. I am correct to say they I should not include this employee in my 2006 ADP test?
Tom Poje Posted October 10, 2007 Posted October 10, 2007 that would be my understanding, especially since the person performed no actual service in 2006.
BG5150 Posted October 12, 2007 Posted October 12, 2007 Was he allowed to defer from that "compensation"? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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