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SMM required?


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Guest Peggy806
Posted

Plan was already cross-tested and had two groups, owners and other employees. Now they are changing to have each employee in his own rate group. Would that require a SMM? The employees are still going to get their gateway contribution.

Posted

I would say yes and SMM is required. I imagine everyone is in their own rate group so that when you fail it is easy to chose who gets more than the gateway to pass, no?

An SMM will avoid that pesty situtaion where ees share info on contributions and one ee wants to know why Jill got 8% of pay but she only got 5% of pay when the SPD says that all NHCEs are in the same group.

Posted

It depends on what the SPD said. With any type of group allocation, ours just makes a vague reference to a "group method" so changes to the groups wouldn't call for a SMM.

Ed Snyder

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