Top-Heavy "Compensation"

[Guest EMC]

If a non-key employee becomes employed and at the same time immediately becomes a participant in a top-heavy plan mid-year, what compensation is used to determine that non-key employee's top-heavy minimimum contribution? His/her compensation only from the date of hire/entry?

[John A]

Are you asking if compensation with a different, unrelated employer should be used? If the employee participates immediately on hire, you certainly would use all compensation from hire date. What compensation would there be prior to hire date?