Highly Compensated Employee 2024 Testing

Highly Compensated Employee 2024 Testing. To find out which employees are considered highly compensated employees, the irs has two tests: An employee is an hce based on compensation if he or she was actually paid more than a set dollar limit ($130,000 for 2020 and $125,000 for 2019).

The remaining test is called the top. If you receive compensation in 2024 that’s more than $155,000 and you’re in the top 20% of employees as ranked by compensation, your employer can classify you as a highly compensated.