FAQ 456: ADP--Location showing incorrect prior ADP % for one location

Problem:

I have a multiple employer plan with 6 companies. Two of the companies are a controlled group and need to be tested together. This is the first year on ASC for this plan. The ADP/ACP test uses prior year NHCE percentage. I have used location codes to identify the companies and to enter the prior year year ADP and ACP percentages. If I run the ADP/ACP test separately for each company, the correct NHCE percentage is used for the combined companies (which I have entered on the Locations screen in the specs for each company). However, when I run the test and select both companies, the percentage is different and incorrect for the ADP. The ACP is still correct. What do I need to do to get the correct NHCE prior year ADP percentage for my combined testing for the 2 companies?


Solution:

Check the TESTADP and ADPCOUNT screens in the Values section of the plan specs. The test is pulling prior test percents from these screens instead of from the expanded location screen. Zero out the values on the TESTADP and ADPCOUNT screens and the test should use the percentages coded on the Locations screen.