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- Section 125 Nondiscrimination Testing Suite
- Dependent Care Tests
- Dependent Care 55% Average Benefits Test
For the purposes of the Dependent Care Test, "non-taxable benefits" is defined as all pre-tax contributions to the dependent care FSA plan. Additionally, any employee who earned less than $25,000 in the testing year may be excluded.
Highly Compensated Employee:
- A more than 5% owner; or
- An employee with annual compensation more than the “Highly Compensated Employee” threshold for the prior year
- If elected by the employer, an employee in the “Top-Paid group”
| Non-taxable benefits paid to Highly Compensated EE's: | |
| Number of Highly Compensated Employees: | |
| Average Benefits paid to Highly Compensated EE's (calculated): | |
| Non-taxable benefits paid to Non-Highly Compensated EE's: | |
| Number of Non-Highly Compensated Employees included*: | |
| Average Benefits paid to Non-Highly Compensated EE's (calculated): | |
| Average Benefit Percentage Ratio (calculated): | |
| Result: |
Please note that Sentinel does not keep record of the testing conducted through this portal. Print the results of each test to retain for your records.
Highly Compensated Individual (HCI):
- An Officer during preceding plan year (or current plan year in the case of the first year of employment)
- A more-than 5% owner of the employer during the preceding or current plan year
- An employee with annual compensation more than the “Highly Compensated Employee” specified dollar threshold for the preceding year (or current plan year in the case of the first year of employment)
- For 2022, an employee with compensation over $130,000 in 2021
- Spouse or dependent of any of the above
