{"id":1901,"date":"2009-10-18T14:24:46","date_gmt":"2009-10-18T18:24:46","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=1901"},"modified":"2011-10-20T15:56:12","modified_gmt":"2011-10-20T19:56:12","slug":"irs-announces-2010-highly-compensated-employee-limitation","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/10\/irs-announces-2010-highly-compensated-employee-limitation\/","title":{"rendered":"IRS Announces 2010 Highly Compensated Employee Limitation"},"content":{"rendered":"<p>In <a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2009\/10\/ir-2009-094.pdf\" target=\"_blank\">IR-2009-094<\/a>, the <a href=\"http:\/\/www.irs.gov\/\" target=\"_blank\">Internal Revenue Service (IRS)<\/a> announced that for 2010 the Highly Compensated Employee Limitation under <a href=\"http:\/\/frwebgate.access.gpo.gov\/cgi-bin\/getdoc.cgi?dbname=browse_usc&amp;docid=Cite:+26USC414\" target=\"_blank\">\u00a7414(q)(1)(B)<\/a> of the Internal Revenue Code of 1986 will remain unchanged. Non-discrimination testing in some types of retirement plans limits the deferral rate of \u201chighly compensated employees\u201d (HCEs) based upon the deferral rate (ADP) of the \u201cnon-highly compensated employees\u201d. For 2010, an HCE is anyone who was a \u201c5-percent owner\u201d at any time during 2009 or 2010 or anyone who received in excess of $110,000 in compensation during 2009 and, if elected by the employer, is in the top twenty percent of employees based upon compensation. The HCE limit was $100,000 for 2008 plan testing and $105,000 for 2009 plan testing. Since the law includes a look-back provision, employees who earned more than $105,000 in 2008 are generally considered HCEs for 2009 plan year testing, employees who will earn more than $110,000 in 2009 are generally considered HCEs for 2010 plan year testing, and employees who will earn more than $110,000 in 2010 are generally considered HCEs for 2011 plan year testing. Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have questions on changes to the HCE definition for 2009 and 2010 or get further information at <a href=\"https:\/\/old.visionpayroll.com\/kb\/important-facts-and-figures\/\" target=\"_blank\">Important Facts and Figures<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In IR-2009-094, the Internal Revenue Service (IRS) announced that for 2010 the Highly Compensated Employee Limitation under \u00a7414(q)(1)(B) of the Internal Revenue Code of 1986 will remain unchanged. Non-discrimination testing in some types of retirement plans limits the deferral rate of \u201chighly compensated employees\u201d (HCEs) based upon the deferral rate (ADP) of the \u201cnon-highly compensated [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[430,431,17,243,435,1064,433,438,436,428,321,1063,437,432],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1901"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=1901"}],"version-history":[{"count":8,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1901\/revisions"}],"predecessor-version":[{"id":1905,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1901\/revisions\/1905"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=1901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=1901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=1901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}