2024 Highly Compensated Employee. It will go up to $155,000 in 2024. However, hces may face additional limits:
If you receive compensation in 2024 that’s more than $155,000 and you’re in the top 20% of employees as ranked by compensation, your employer can classify you as a highly compensated. The compensation covers recurring salaries from an employer and commissions, overtime payments, bonuses, and salary deferrals made towards 401 (k)s and cafeteria plans.
Effective January 1, 2025, The Final Rule Increases The Minimum Salary Required For These Exemptions To $1,128 Per Week.
Or, regardless of ownership, if an employee earned more than $155,000 in 2024 (up from $150,000 in 2023).
The Threshold For Determining Who Is A Highly Compensated Employee Under Section 414(Q)(1)(B) Increases To $155,000 (From $150,000).
The final rule will increase the standard salary level and the highly compensated employee total annual compensation threshold on the rule’s effective date on july 1, 2024, and on january 1, 2025, when changes in the methodologies used to calculate these levels become applicable.
Owners Earning Over $155,000 In 2024, Not Adjusted For Inflation, (Up From $150,000 In 2023) And Holding More Than 1%
This comprehensive analysis delves into the intricacies of their compensation structure, industry trends, job functions, and geographic locations, providing valuable.
An Employee May Qualify As A Highly Compensated Executive Employee, For Example, If The Employee Customarily And Regularly Directs The Work Of Two Or More Other Employees, Even Though The Employee Does Not Meet All Of The Other Requirements For The Executive Exemption Under § 541.100.
Also certain family members of those who are 5% owners are considered hces.
