FAQ 621: HCE--Officer not showing as key employee


One employee is showing as a key employee and another is not, even though they are both officers.


1. The Determination Date on the HCE/key setup screen determines whether a person is key/HCE or not. In general, it defaults to the prior plan year end. The key employees need to have officer codes and compensation in both the current year record and in their history record for the previous plan year.

2. If you don't want to run the key employee determination as of the prior plan year, change the Determination Date on the setup screen to the end of the current plan year and make sure all employees are correctly coded for officer status, ownership %, family and lineal descendant/spouse codes on the Name and Identification screen in the employee record.