A extremely compensated worker (HCE) is an worker who earns greater than a specific amount set by the Inner Income Service (IRS). The HCE threshold is adjusted every year 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 selection of explanation why an employer may wish to establish extremely compensated workers. For instance, HCEs could also be topic to completely different guidelines and laws than different workers. They might even be eligible for various advantages and compensation packages. Moreover, employers might use HCE information to make selections about pay fairness and variety.
