Las Vegas, NV 89107
Salt Lake City, Utah 84047
To follow-up to our last post, here are some more details on the end-of-year retirement plan census required by the Internal Revenue Service and Department of Labor. It consists of names, compensation, relevant dates (hire, birth, termination) and number of hours worked for all employees who were employed during the year, not just those actively participating in the plan.
Compensation typically includes gross compensation reported on Form W-2, unless the plan specifically excludes certain types of compensation for plan purposes. You will need to refer to your specific plan document(s) to determine which items to include as plan compensation. We recommend the preparation of a compensation reconciliation starting with gross compensation and ending with plan compensation, which shows the various applicable adjustments.
It is important to identify owners and officers of the employer on the census. This information is needed to help determine highly compensated employees (HCEs) for purposes of the nondiscrimination tests and key employees for the top heavy test. It is also important to identify which employees are relatives of any owners, since they may be considered owners through stock attribution rules.
Contact us to learn more about how this census information is used and what tests are performed on your employee benefit plan.
EMPLOYEE BENEFIT PLANS