Entering Key Test Criteria
Access the Define Test Criteria form.
Complete these required fields:
Test Name
Test Year/Basis
Compensation Basis
Number of Years Tested
Total Compensation Table
Employee/Employer Contribution Table
Complete the And/Or field.
When you select And, the system requires that an employee pass both criteria records that you enter. When you select Or, the system requires that an employee pass only one criteria record. The system value is And.
Complete these fields in the combinations that you require for the organization:
Compensation Limit
Top Pd
M T
Description
NDT Code
NDT Code Description
NDT Code Value
NDT Value Description
For example, you can enter criteria for Compensation Limit and Top Pd based on rank, or Compensation Limit and Top Pd based on percentage. Alternatively, you can enter criteria for Compensation Limit or NDT Code. You cannot, however, combine Compensation Limit and NDT Code.
To specify the companies that you want included in this test, select Company Selection from the Form menu.
On the Company Selection Overrides form, complete the Co field and click OK.
Leave this field blank to include all companies in the test.
On the Define Test Criteria form, select Pay Type Table from the Form menu to define the compensation or contribution tables and associate pay types with them.
On the Work With PDBA Table for NDT form, click Add.
On the PDBA Tables for NDT form, complete these fields and click OK:
Pay Type Table
From Trans
Thru Trans
On the Work With PDBA Table for NDT form, click Close.
On the Define Test Criteria form, click OK.
Test Name
Enter the UDC 08/TN that identifies a test used to segregate key and non-key employees for the purposes of benefit NDT.
Test Year/Basis
Enter the calendar year for which the rules of an NDT are in effect.
Compensation Basis
Enter a 1to calculate employee compensation based on the calendar year.
Number of Years Tested
Enter a 1 to indicate a test for the current calendar years.
Total Compensation Table
Enter the table that determines an employee's total annual compensation. All PDBAs that make up the employee's compensation should be included in this table setup.
This table is defined in the DBA Pay Type Tables program (P083931).
Employee/Employer Contribution Table
Determines employer and employee 401(k) contributions. All DBAs that make up this contribution should be included in the table setup.
This table is defined in the DBA Pay Type Tables program (P083931).
And/Or
Enter a code to designate whether the test parameters or criteria are based on an AND condition or an OR condition.
Compensation Limit
Enter the minimum amount of annual pay that indicates that an employee is a key employee for the purposes of a benefit NDT. That is, any employee who earns this amount or more is considered a key employee or HCE. The types of pay which contribute to an employee's compensation can be restricted using the compensation pay type table (see data item PTCL). This field can be used in conjunction with the Top Pd field (data item TPP) to specify that an employee must earn a specified amount and be in the top paid group in order to be a key employee.
Top Pd (top paid)
Enter a number that indicates the top paid group of employees who are considered key employees or HCE for a benefit NDT. The number can refer either to a top paid percentage or a top paid number of employees, depending on the code, if any, in the MT (Method for Top Group) field (data item TPM). For example, a value of 20 in this field and % (percent) in the MT field indicates that employees who are among the top paid 20 percent of all employees tested are considered key employees for the test. However, if the MT field is blank, the top paid 20 employees tested are considered key employees.
This field can be used in conjunction with the Amount field (data item CMPL) to specify that an employee must earn a specified amount and be in the top paid group in order to be a key employee.
M T (method)
Enter a qualifier for the Top Paid field (data item TPP) that indicates whether the number is a percentage or a flat amount. A value of % (percent) in this field indicates that top paid refers to a percentage group of employees. A value of blank indicates that top paid refers to employees by their rank (data item ERNK).
Examples:
Top paid 20 using percent method means the top paid 20 percent of employees tested.
Top paid 15 using rank method (blank) means the top paid 15 employees tested.
NDT Code (nondiscrimination testing code)
Enter the NDTcode (K001–K010) you select to use when setting up a test specification. You specify category codes that have been updated in the process of running a previous test.
NDT Code Description (nondiscrimination testing code description)
Enter a user-defined name or remark.
NDT Code Value (nondiscrimination testing code value)
Enter the value of the NDT code in the employee master. For example, values for the Owner/Officer field (K001) are defined in UDC 06/OO. This value enables the description to be printed for the field value.
The values for the remaining NDT codes (K002–K010) are either defined as values for the data item as Y for yes or _ for blank.
NDT Value Description (nondiscrimination testing value description)
Enter a user-defined name or remark.
Co (company)
Enter the company number where the employee records generally reside.
Pay Type Table
Enter the name of the table you defined in UDC 08/TU.
From Trans
Enter the number and description of the PDBA that you want the system to use to calculate the corresponding PDBA. This number is the beginning number in the range that is the basis of the calculation.
Thru Trans
Enter the number and description of the PDBA that you want the system to use to calculate the corresponding PDBA. This number is the ending number in the range that is the basis of the calculation.