I'm the owner of a small business with one employee other than myself, and I'm looking at 401k plans for the business.
A significant amount of this employees total compensation will end up coming from performance bonuses distributed periodically throughout the year;
When I'm looking at potential 401k plans, I can't tell if a given matching percentage will apply just to someone's salary, or also to their bonuses / total amount of compensation... and I'm trying to figure that out before deciding on which matching percentage to offer.
In summary - Are bonuses included as part of 401k matching (For nondescrimination Testing / Safe Harbor?)
UPDATE - I should have added, this is in reference to nondiscrimination testing / safe harbor testing for 401k plans. One of the options is to match 4%, 5% or 6% of someones pay, and I'm not sure whether that includes bonuses or not.