Internal Revenue Code Section 318 focuses onhighly compensated employees, key employees, and disqualified individuals inemployee stock ownership plans. This section also identifies related companies that are part of an affiliated service group.3 The section stipulates that an individual owns what their sp...
Highly Compensated Employee Exemption To qualify for the highly compensated employee exemption, employees must pass the same three tests, but the duties test is somewhat simplified. These employees must: Perform primary duties consisting of office or non-manual work. Regularly perform at least one of...
Highly-compensated employees Computer Professional Administrative Executive Non-exempt employees, in contrast, earn hourly wages. Non-exempt employees must receive minimum wages that align with the federal or statewage laws. Unlike exempt employees, non-exempt employees qualify to receive overtime pay whe...
From the participant's perspective, NQDC plans offer a reduced tax burden and a retirement savings bonus. This is especially valued byhighly compensated employeesbecause qualified 401(k) plans have annual contribution limits.12On the downside, the money in NQDC plans does not have the same pro...
Deferred Compensation Plans, also known as non-qualified deferred compensation plans, are retirement benefits offered by some employers to key executives or highly compensated employees. These plans allow participants to defer a portion of their income, typically on a pre-tax basis, to be received ...
Exempt employees are those who qualify for exemption under one of the following: Executive, administrative, or professional exemption Computer exemption Outside sales exemption Highly compensated employee exemption Let’s say a nonexempt employee works 45 hours per week and receives an hourly pay of...
Ultimately, it's important for employees to understand their job duties and compensation structure to make an informed decision. Can highly compensated employees (HCEs) ever be eligible for overtime pay? The Supreme Court has held that HCEs are eligible for overtime payment if their compensation...
However, the FLSA provides an exemption from both minimum wage and overtime pay for individuals who are employed as bona fide executive, administrative, professional, outside sales, certain highly compensated employees, and certain computer professional employees. The law also includes exemptions for ...
Highly compensated employee exemption FLSA highly-compensated employeesare those who receive a high salary. To qualify, an employee must meet both of the following requirements: Receive annual compensation totaling $107,432 or more Perform at leastoneof the executive, administrative, or professional dut...
Compensation thresholds for Key Employees and Highly Compensated Employees increased from $150,000 in 2023 to $155,000 in 2024. Key employee income thresholds also increased from $215,000 in 2023 to $225,000 in 2024. This means potentially substantial changes to your ACP, ADP, or Top-Heavy ...