A extremely compensated worker (HCE) is an worker who earns greater than a specific amount set by the Inside Income Service (IRS). The HCE threshold is adjusted annually for inflation. For 2023, the HCE threshold is $135,000. A extremely compensated worker 2025 is an worker who earns greater than $135,000 in 2025.
There are a selection of explanation why an employer would possibly need to determine extremely compensated staff. For instance, HCEs could also be topic to totally different guidelines and rules than different staff. They could even be eligible for various advantages and compensation packages. Moreover, employers might use HCE knowledge to make choices about pay fairness and variety.
