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can someone help me understand where the 16%, 0%, 6.67%, 5%, and 0% come from in the solution? Aztec Clay Distributor is a family owned
can someone help me understand where the 16%, 0%, 6.67%, 5%, and 0% come from in the solution?
Aztec Clay Distributor is a family owned business that is owned by Alice, Bill, Chad and Zion. Alice and Bill are over 50 . Zon is not an employee, rather a silent or somewhat silent partner. Alice and Bil are mamied and Chad is their 25-year-old son who has a degree in Soll Science from Dhaka University in Bangladesh. Aztec sponsors a 401(k) plan. The employee census information is in the chart below. Assuming the company did not elect the exception to the definition of highly compensated employees, the average ADP of the highly compensated employees can be no greater than what percent? - A)7.53\%. - Rationale.The non-highly compensalod employees are Frank, Ginger, Haley, Inish and Jen. The ADP for the NHCEs equals 5.53%[16%+0%+ 6.67%+5%+0%]+51 Adding 2 percentage points equals 7.53%. Chad is HC since he is attributed ownership from his parents: - B) 8.32% - C) 8.65% - D) 11.98% Step by Step Solution
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