A extremely compensated worker (HCE) is an worker who earns greater than a certain quantity set by the Inner 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 may wish to determine extremely compensated workers. For instance, HCEs could also be topic to completely different guidelines and rules than different workers. They could even be eligible for various advantages and compensation packages. Moreover, employers might use HCE knowledge to make selections about pay fairness and variety.
