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 variety of the reason why an employer may need to determine extremely compensated workers. For instance, HCEs could also be topic to totally different guidelines and laws than different workers. They could even be eligible for various advantages and compensation packages. Moreover, employers could use HCE information to make selections about pay fairness and variety.
