FAQ 134: ADP--Prior year percentages do not match input percents

Problem:

The ADP test is not doing prior year testing correctly. It is not picking up the non-HCE percentages that I input in the plan specs.


Solution:

On the ADP Counts (ADPCOUNT) screen in the Values section of the plan specs, there are figures in the statutorily excludable fields as it must have been run on a disaggregated basis last year. The law requires a proration of the percents if running a non-disaggregated test this year, which is what the system is doing. If those counts are not correct, delete them and then it will use the percentages that are input in the Prior Year's Non-HCE "ADP" and "ACP" fields.