Highly Compensated Employee 2024 Definition In Telugu. Officers making over $225,000 in 2024 (up from $215,000 for 2023) owners holding more than 5% of the stock. Highly compensated employees (hces) are employees who earn more than the irs maximum allowable compensation for a 401 (k) of $155,000 ($150,000 for 2023), or who own more than 5% of a business.

The irs defines a highly compensated, or “key,” employee according to the following criteria: $135,000 if the preceding year is 2022, $150,000(if the preceding year is 2023 and $155,000 is 2024 if the preceding year.