All current and terminated employees must be included in your employee census report, regardless of whether they will be immediately eligible to participate in the plan. We use this information to determine eligibility to enroll in the plan and perform IRS-mandated ADP, ACP, Top Heavy, and coverage testing for your plan. Having complete and accurate records also helps us ensure we can assist with responding to a request by the IRS or DOL in the event of a claim by the dismissed employee or an audit of your plan, which may require records dating up to six years back. Don’t worry, dismissed/inactive employees who are not otherwise eligible to participate in, or who were not previously eligible or enrolled in your Guideline 401(k) plan will not receive an enrollment invitation from us, or other proactive communications.
If a dismissed employee is showing up on your Guideline roster as “active,” please reference this support article entitled “How do I update the status of a terminated employee in Guideline.”