Who should be considered a highly compensated employee?
Participants who earned in excess of $110,000 in compensation during the prior year should be classified as highly compensated employees for 2009 testing. Participants who own (directly or indirectly) more than five percent of the employer should also be classified as highly compensated employees, regardless of the amount of compensation earned in the prior year. The ownership interest of an individual must be considered as owned by the individual’s spouse, children, parents and grandparents. If you were classified as a highly compensated employee and feel this is an error, please contact the plan coordinator at your dealership immediately.
