Related Company and Compensation for ADP Test

100% owner of plan sponsor owns a second company 100% which is not a participating employer to the plan.   He says there are no employees who would meet the plan's eligibility.  The ADP test fails for 2022 (which includes data only for the covered company.).  He wants to add his compensation from the non-sponsoring company which would help the test.  I believe the answer clearly is no.

(And yes we will get the census for non-sponsoring company to check this out.)

Tom

Our basic plan document includes this in the Plan Compensation section "Plan Compensation generally includes amounts an Employee earns with a Participating Employer and amounts earned with a Related Employer (even if the Related Employer has not executed a Participating Employer Adoption Page under the Adoption Agreement). However, the Employer may elect under AA §5-3(h) to exclude all amounts earned with a Related Employer that has not executed a Participating Employer Adoption Page."

I'm pretty sure it's in other document providers BPDs as well. It's my understanding that this allows that compensation to be included for testing without it having to adopt.

If there are NHCEs, that's a different issue.