Irs Highly Compensated 2024. We'll define what it means to be an hce, explore the. The internal revenue service (irs) defines hces as individuals receiving a total annual compensation exceeding $155,000 in 2024 or $150,000 in 2023.
Owned more than 5% of the interest in the business at any time during the year or the preceding year, regardless of how much. The threshold for determining who is a highly compensated employee under section 414(q)(1)(b) increases to $155,000 (from $150,000).