FAQ 47: ADP--Employees not included even though they are eligible

Problem: I am running an ADP test on an existing plan. However, I am getting data errors that 3 employees that are making deferrals are not eligible to do so, but they are eligible. What would cause this data error?

Solution: The reason that those three employees, and most likely others, are showing up as ineligible, is due to your coding in the source 1 (deferral) specs and/or Roth Source. The system uses the status codes from the ADP/ACP test setup screen to determine who should be included in the test, but it also looks at the "Hours" requirement and "Contrib groups elig" coded in the source 1 (and Roth or source 3, when applicable) specs to see if they met the eligibility and hours requirement. Since these employees have less than the 1000 hours coded in their records, the system thinks that they are not eligible for the contribution, and thus should not be included in the test. Change the Hours field in the source specs to "1", save the specs, and re-run the test and they should be included.