|Definition||:||Actual Deferral Percentage|
|Category||:||Business » Business Terms|
What does ADP mean?
Actual Deferral Percentage (ADP) is an annual test that applies to employee salary deferral or 401(k) contributions. ADP compares the average salary deferrals of Highly Compensated Employees (HCE) to that of non-highly compensated employees (NHCE). It ensures that contributions made by NHCE are proportional to contributions made for HCE.
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Frequently Asked Questions (FAQ)
What is the full form of ADP Test?
The full form of ADP is Actual Deferral Percentage
What are the full forms of ADP in Business?
What are the full forms of ADP in the United States?
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