Puerto Rico HCEs

[justatester]

When determining HCEs for a Puerto Rico Test, is there any flexibility in the rounding method? For example, with 16 employees, 1/3 would be 5.33. So should there be 5 HCEs or could there be 6?

Any thoughts, greatly appreciated.

[Tom Poje]

my understanding of the 'old' regs is that the rule read as follows

"HCEs are defined as those eligible employees who are more highly compensated than two-thirds of all eligible employees."

the emphasis being on 'are more'.

if you have 5 HCEs and 11 NHCEs would that satisfy that description? I don't see how that could be considered 'more'