Prior Year ADP Testing

[Guest Robb Muse]

When we completed the ADP test last year we utilized our right to exclude eligible participants who were not eligible by statuatory requirements (1 yr. & age 21). This moved the ADP % from 5.03% up to 5.33%. If we are using the prior year testing method when completing this year's test which ADP % can I use? Does it matter?

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Robb

[MWeddell]

Notice 98-1 says you use the prior year NHCE percentage computed in the manner for how the prior year test was actually performed (or at least that's my paraphrase of it). Hence, 5.33% if the correct answer in your situation.

[LCARUSI]

5.33% if you are testing <21/1 separately again. If you are combining them into a single test, I think you would use 5.03%.