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 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 need to determine extremely compensated staff. For instance, HCEs could also be topic to completely different guidelines and rules than different staff. They might even be eligible for various advantages and compensation packages. Moreover, employers could use HCE information to make selections about pay fairness and variety.
