FAQ 38: ADP--Not including terminees in quarterly valuation


Why is the ADP test not including anyone who terminated during the first three quarters of the year? It is a quarterly valuation. Some of the persons are coded as status F, some P, but even the status M employees aren't showing up. The deferrals tested are the total for the year, not just the 4th quarter. On the ADP setup screen it says to include all status codes.


The beginning of the plan year in the specs is set to the beginning of the quarter, instead of the beginning of the plan year. Go to the Plan Identification (ID) screen in the plan specs and change the Plan Year Begin field to the correct date. For a calendar year plan, the Plan Year Begin field should be 01/01/YYYY. This date should always be the first of the plan year NOT the first day of the quarter.