ADP Testing

Eligible Employees and their info

Employee Ownership % Salary Employee Contribution

Adam 0 $45,000 $900

Bonita 70 $175,000 $19,500

Charlie 0 $37,500 $0

Denise 0 $42,000 $0

Edward 30 $70,000 $19,500

Frances 0 $150,000 $19,500

George 0 $140,000 $7,000

Henry 0 $85,000 $850

Ingrid 0 $90,000 $900

Jane 0 $40,000 $800

Perform the ADP Test using both methods (including the top 20% election) and report the results.

Next address the four acceptable methods to make corrections, figure the safe harbor option, and make a final recommendation to Bonita and Edward regarding the best option and why.