highly compensated employee
- highly compensated employee
-
highly compensated employee (HCE)
USA
Any employee who either:
• Was a 5% owner of the employer at any time during the year or the preceding year.
• Had compensation in excess of $110,000 (in 2010) as indexed, in the preceding year and, if the employer so elects, was in the top-paid group of employees for the preceding year.
Special rules apply for aggregating entities for determining the employer, the compensation to be used in the determination, treating former employees as highly compensated and for excluding certain types of employees (IRC 414(q) and Treas. Reg. 1.414(q)-1T).
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
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