Identifying Highly Compensated Employees
Journal of Pension Benefits, Vol. 1, No. 4, p. 68, Summer 1994
8 Pages Posted: 28 Sep 2009
Date Written: 1994
Long left undefined in the regulations, Tax Reform Act of 1986 (TRA '86) was supposed to clearly define the term "highly compensated employee." Unfortunately, its complex procedures make identifying highly compensated employees (HCEs) a very difficult process. This article explains the rules and the simplified testing methods recently introduced to alleviate the problem.
Keywords: highly compensated employees (HCEs), Tax Reform Act of 1986 (TRA '86)
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