{"id":4297,"date":"2010-10-29T00:01:20","date_gmt":"2010-10-29T04:01:20","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=4297"},"modified":"2010-11-02T11:55:52","modified_gmt":"2010-11-02T15:55:52","slug":"question-of-the-week-what-are-the-2011-highly-compensated-employee-limits","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2010\/10\/question-of-the-week-what-are-the-2011-highly-compensated-employee-limits\/","title":{"rendered":"Question of the Week: What Are the 2011 Highly Compensated Employee Limits?"},"content":{"rendered":"<div class=\"img alignright size-medium wp-image-4324\" style=\"width:300px;\">\r\n\t<a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2010\/10\/Executive-Group.jpg\"><img src=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2010\/10\/Executive-Group-300x199.jpg\" alt=\"What Are the 2011 Highly Compensated Employee Limits?\" width=\"300\" height=\"199\" \/><\/a>\r\n\t<div>What Are the 2011 Highly Compensated Employee Limits?<\/div>\r\n<\/div>This week\u2019s question comes from Cristina, a company president. We\u2019re doing some planning for next year. What are the 2011 Highly Compensated Employee Limits?<\/p>\n<p><strong>IRS Releases 2011 Highly Compensated Employee Limits in IR-2010-108<\/strong><\/p>\n<p>In <a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2010\/10\/ir-2010-108.pdf\" target=\"_blank\">IR-2010-108<\/a>, the <a href=\"http:\/\/www.irs.gov\/\" target=\"_blank\">Internal Revenue Service (IRS)<\/a> announced that for 2011 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.<\/p>\n<p><strong>Highly Compensated Employee Compensation Limit Remains at $110,000<\/strong><\/p>\n<p>For 2011, an HCE is anyone who was a \u201c5-percent owner\u201d at any time during 2010 or 2011 or anyone who received in excess of $110,000 in compensation during 2010 and, if elected by the employer, is in the top twenty percent of employees based upon compensation. The HCE limit was $110,000 for 2008 and 2009.<\/p>\n<p><strong>Look-back Provision Impacts HCE Testing Period<\/strong><\/p>\n<p>Since the law includes a look-back provision, employees who earned more than $110,000 in 2009 are generally considered HCEs for 2010 plan year testing, employees who will earn more than $110,000 in 2010 are generally considered HCEs for 2011 plan year testing, and employees who will earn more than $110,000 in 2011 are generally considered HCEs for 2012 plan year testing.<\/p>\n<p><strong>Contact Vision Payroll for More Information on HCEs<\/strong><\/p>\n<p>Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have questions on changes to the HCE definition for 2010 and 2011 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>What Are the 2011 Highly Compensated Employee Limits? This week\u2019s question comes from Cristina, a company president. We\u2019re doing some planning for next year. What are the 2011 Highly Compensated Employee Limits? IRS Releases 2011 Highly Compensated Employee Limits in IR-2010-108 In IR-2010-108, the Internal Revenue Service (IRS) announced that for 2011 the 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":[431,243,435,1064,1199,433,438,436,428,321,1396,437,432,44],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4297"}],"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=4297"}],"version-history":[{"count":6,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4297\/revisions"}],"predecessor-version":[{"id":4302,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4297\/revisions\/4302"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=4297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=4297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=4297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}