What is Non-Discrimination Testing?

Tax regulations stipulate that cafeteria plans must avoid showing preferential treatment to highly compensated employees. That’s where Non-Discrimination Testing (NDT) comes into play. NDT is a series of mathematical evaluations applied to cafeteria plans. These assessments play a crucial role in ensuring that the plans remain fair and do not unduly favor individuals with higher compensation, including owners, officers, or their relatives. All employers who offer and welfare benefits to their employees are required by the IRS to conduct NDTs annually.

Who should perform Non-Discrimination Testing?

Tax regulations stipulate that cafeteria plans must avoid showing preferential treatment to highly compensated employees. Non-Discrimination Testing becomes the solution—a series of mathematical evaluations applied to cafeteria plans. These assessments play a crucial role in ensuring that the plans remain fair and do not unduly favor individuals with higher compensation, including owners, officers, or their relatives.

Non-Discrimination Testing Options

BASIC

Non-Discrimination Testing
  • Eligibility Test

  • Concentration Test

  • Benefits Test

  • Dependent Care Average Benefits Test

  • Dependent Care Owner's Test

PREMIUM

Non-Discrimination Testing
  • Eligibility Test

  • Concentration Test

  • Benefits Test

  • Dependent Care Average Benefits Test

  • Dependent Care Owner's Test

  • Employer self-service options: Facilitate tests at your convenience.

  • Direct access to run tests

  • Complete NDT solution: Your all-in-one solution to staying compliant with NDT.