BN340 – ADP and ACP Tests

About BN340

Run ADP and ACP Tests (BN340) to determine whether a defined contribution plan satisfies the ADP (Actual Deferral Percentage) and ACP (ActualContribution Percentage) tests. This report only includes employees with a work country of US. You can use Highly Compensated Employee (BN305) to determine who should be identified as highly compensated on HR11.1. For each employee, the report lists: compensation as defined on report parameters, the appropriate deferral from BN55.1 (DC/DB Account Balance) for the report option selected, and the percent of contributions for eachemployee. Totals are printed for both the highly compensated and the non-highlycompensated groups. Contribution percents are totaled by highly compensated and non-highly compensated groups then divided by the total number of eligibleemployee in the group. **Processing Effect The ADP test calculates and compares actual deferral percentages for highly compensated and non-highly compensated employees. The ACP testcalculates and compares actual contribution percentages for highly compensatedand non-highly compensated employees. BN340 uses compensation from the Payroll application up to the maximum amount defined in BN12.1 (Benefits Annual Limits) for the plan year. The test can use pre-tax, after tax, and company match contributions. The test includes employees who are eligible for the plan based on the eligibility requirements defined in BN15.1 (Benefit Plan) for the plan. The report shows highly compensated employees followed by non-highly compensated employees. The report lists the employees as highly compensated if you identify them as such on the Plan Test subform of Employee (HR11.1).

Updated files (4)

Referenced files (34)

Program calls

Invoked programs (15)

ACAC, ACTA, API4, HRHI, HRLO, IFAC, IFCU, IFLU, IFOB, IFSG, IFUP, SLSE, SLSU, ZB31, ZB32