2016 is coming to a close which means you will receive the annual census request from your TPA soon. The census request is used to report any business changes that have occurred in the previous year and provide employee census data for annual testing. It’s crucial to report accurate information because missing/incorrect ownership and employee data may affect test results, and inaccurate tests could lead to complicated corrections and possible penalties.
The Census Request Overview provides detailed explanations regarding compensation (one of the most important pieces of information reported!), contributions reported, your employees’ personal/employment data, highly compensated & key employees, and mergers/acquisitions. If you have questions regarding your plan’s definition of compensation or other items asked for on the census, contact your TPA. Asking the question now may avoid fixing an inaccurate test later.