"Doing a Profit Sharing plan. The only reasonable way the test is passing is using the accrued-to-date method. Contribution basis is obviously out, and the regular benefits basis is failing too. The accrued-to-date method is passing. But I want to make sure the compensation used is correct. Does negative income (a loss) get used as part of the average? Or do you use zero for those years? Example: Year 1: 100,000. Year 2: (50,000). Year 3: $100,000. Is my testing comp $50,000 or $66,667?"