FAQ 349: HCE--Top paid group election tie breaker


I am running a HCE determination calculation in ASC and I am showing three employees with the same compensation but only one is considered an HCE. Their compensation history for prior years are the same and the employee's last name isn't at the beginning of the alphabet. I just need to know so I can explain to the client why one employee is HCE but the others are not.


The tie breaker when compensation is the same is Date of Hire - oldest hire is brought in as HCE.