Listing Highly Compensated Employees

Define the criteria that the report uses to determine which employees are highly compensated and then run the report to list employees who meet that criteria. Once you have the highly compensated employees identified, set the Highly Compensated field on the Plan Test tab of Employee (HR11.1). This information is used when you run the ADP and ACP Tests (BN340). Performing the ADP and ACP Tests

Note: The application does not use the annual salary from the Pay subform on Employee (HR11.1) to determine compensation. Rather the application uses payroll history for the dates designated.

To list highly compensated employees

  1. Access Highly Compensated Employees (BN305).
  2. In the Parameters section, use the following guidelines:
    Plan Start Date

    Type the plan's start date. This is a required field. The application uses payroll records for the year beginning on this date to determine actual employee compensation.

  3. In the Preceding and Current Year section, use the following guidelines to enter field values:
    Pay Class

    Select Pay Class to limit the Pay Types to include in Compensation 1, Compensation 2, or Officer Compensation Amounts. If Blank, include all types of Pay in the Compensation Amount.

    Compensation 1

    Type an amount of compensation to select employees who received compensation greater than this amount as highly compensated employees.

    Compensation 2

    This field works with the Top-paid Percent field to determine which employees are highly compensated. Type an amount of compensation to select employees who received compensation greater than this amount. An employee is considered highly compensated if the employee's compensation exceeds this amount and the employee is in the percent group of employees specified in the Top-paid Percent field.

    Top-paid Percent

    Type the percent of top-paid employees who are considered to be highly compensated and who received compensation greater than the amount specified in the Compensation 2 field.

    Officer Compensation

    Type an amount of compensation to select employees who are identified as officers in the Benefits subform of Employee (HR11.1) and who received compensation greater than this amount. If you leave this field blank, all officers will be listed on the report.

  4. From the Current Year section, use the following guidelines to enter field values:
    Number of Employees

    To select a specified number of highest paid employees in the company, type the number of top-paid employees you want listed. For example, if you type 100 the report lists the 100 top-paid employees in the company.

    Employee Sequence

    Select a value to override the default print order defined in HR00.1 (Company).

    If you select Alpha, employees list by name. If you select Numeric, employees list by number. If you leave this blank, employees list in the order defined in Company (HR00.1).

    Update

    Select Report Only so that the program lists the employees that will be updated so you can review them. Select Update so that the program automatically updates the Highly Compensated field value on the Employee Record (HR11) and lists the Highly Compensated employees.

  5. Select the Add form function.
  6. Submit the report.
  7. Access Employee (HR11.1) and set the Highly Compensated field flag on the Plan Test tab for each employee identified from the report.