What Is Section 414(q)? Understanding “Highly Compensated Employees” for Tax and Payroll Purposes
Overview When tax law or employee benefit plans mention “highly compensated employees” (HCEs), they’re referring to a definition set by Internal Revenue Code § 414(q). This definition is essential for employers, tax professionals, and business owners—especially now that it’s being referenced in new federal laws like the One Big Beautiful Bill, which uses HCE limits…