A extremely compensated worker (HCE) is an worker who earns greater than a certain quantity 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 variety of the explanation why an employer would possibly wish to determine extremely compensated workers. For instance, HCEs could also be topic to totally different guidelines and rules than different workers. They might even be eligible for various advantages and compensation packages. Moreover, employers could use HCE knowledge to make choices about pay fairness and variety.
