FAQ 294: 410b--Match test not excluding terminees with less than 500 hours


I've been running coverage testing and I noticed that the coverage test isn't pulling out the status code "N" employees as excludables. I've attached the pdf printout. There are 12 employees who have terminated with less than 500 hours. Under the 410(b) for match why wouldn't these employees be listed as terminated with less than 500 hours?


I would guess that the Source 3 matching specs are coded incorrectly for those eligible for a contribution. Your specs should indicate that Groups 34 with 1000 hours are eligible for a contribution, but I would guess that they say 34678 and 1 hour. In order for terminees <500 hours to be excludable, they have to have been ineligible for a contribution. If you change your specs, it should run as you expect.