Highly Compensated Employee 2024 Test

Highly Compensated Employee 2024 Test. The department of labor’s (dol’s) new rule raises the rate first to $844 a week ($43,888 annualized), then to $1,128 (or $58,656 a year). If you receive compensation in 2024 that's more than $155,000 and you’re in the top 20% of employees as ranked by compensation, your employer can classify.

Adp or actual deferral percentage is an annual test in a 401(k) plan that compares the average salary deferrals of highly compensated employees to that of. Under the new rule, the total annual compensation requirement for hces will increase from $107,432 per year to $132,964 per year on july 1 and will rise to.