HCE Determination

I was debating this with someone, so I just wanted to get some clarity.  Company of 10 EE with 4 who were "highly": 1) Owner, 2) Owner's spouse (despite only making $50k) 3 & 4) Regular employees.

If we were going to determine HCE with the Top 20% (meaning 2 HCE) who would be considered?  Would it just be the owner and his spouse due to attribution?  Or would it be the owner, the highest paid non-owner and the spouse?

Thanks in advance!

I've always liked this guide.

https://www.tasconline.com/uploads/KB/Flexsystem/FX055 Top Paid Group_042318.pdf

There are two HCE tests.

Ownership.  If you are in this group, you are an HCE.

Compensation.  If you are in this group, you are an HCE. 

You only need to be in one of the groups.  You can be in both.  And, indeed, many owners are, but not necessarily.

If I understand your specific fact you have 10 ees so TPG is 2 employees and piggy packing on Bill Preston and BG5150 for the OPs case

The Two that have the highest compensation out of 1, 2, 3, 4 are HCE because they are in the TPG

Then look at owners 1 and 2 if they are both of the employees in your TPG then you are done and have 2 HCEs, if they are not in your TPG group add them to the HCE pool because 5% owners are always HCEs and you will have 3 or 4 HCEs even though are using the TPG group.