Non-Discrimination Testing (NDT)
Whether you have a full Cafeteria Plan, Flexible Spending Account (FSA) or a Premium Only Plan (POP), the Internal Revenue Service (IRS) requires annual Non-Discrimination Testing of employees at the end of each plan year. FlexNDT™ administration offers a complete compliance testing curriculum for each type of plan:
What Types of Section 125 Non-Discrimination Testing of Employees are Available?
- 25% Key Employee Concentration Test – Ensures of all the pre-tax dollars being spent through the Cafeteria Plan, no more than 25% is being spent by Key Employees
- Eligibility Test - Ensures enough non-highly compensated employees are eligible to participate in the Cafeteria Plan
- Eligibility Test – Ensures that enough non-highly compensated employees are benefiting from the plan
- Eligibility Test – Ensure enough non-highly compensated employees are eligible to participate in the Dependent Care plan
- 55% Average Benefits Test - Ensures that, on average, highly compensated employee elections are in proportion to non-highly compensated employee elections
- 5% Owners Test – Ensures that any participants who own more than 5% of the shares of the employer are not disproportionably benefiting from the plan
Contact your experts at Flex today for more information on FlexNDT administration testing.