NDT Employee Testing

Make learning and teaching more effective with active participation and student collaboration

About NDT Employee Testing

As an employer or human resources professional for a small or medium-sized business (SMB), there are many compliance considerations to be aware of, especially regarding employee benefits and taxation. One such consideration is nondiscrimination testing (NDT) for certain benefits offerings.

 

This will explain what nondiscrimination testing is, when you should complete it, why it’s important for your organization, and what happens if you encounter testing failures.

Why Hansen NDA?

Our NDT Employee Testing technicians utilize the latest technology and are qualified, certified (e.g. ASNT, API certified), and able to perform inspections to any code, standard, or specification. More importantly, we are consultative in nature. Whether we are nested at your site full-time, or simply called out to your site as needed, we take the time to understand what you are wanting to inspect to ensure we utilize the best method to identify potential issues.

Who is considered a highly-compensated employee?

NDT relies on comparing HCEs and NHCEs. The IRS has clear guidelines on which employees should be considered HCEs.

Interest organization

They own more than 5% of the interest in the organization at any time during the current or preceding year

Annual compensation

They receive more than $155,000 in annual compensation from the organization in the current or preceding year (as of 2024)

IRS permits

The IRS permits you to consider any eligible employees in the top 20% of workers by compensation as HCEs

When should NDT Employee Testing be done?

NDTs are annual tests. These reports are due to the IRS by the final day of the plan year. It’s a good idea to conduct your tests before this date so that you have time to take corrective action to comply with IRS guidelines. Otherwise, you won’t have time to correct any errors that are found.

NDT ensures that your retirement and Section 125 plans are fair to all employees. Since these plans have tax advantages, the IRS enforces NDT so that an organization’s benefits don’t unfairly compensate employers and certain key employees.

Questios About NDT Employee Testing

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. est laborum.

How Can We Help?

Safety, reliability, and compliance obligations can be the difference between a sustainable and profitable business and one that is not.