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| Definition | : | Actual Deferral Percentage |
| Category | : | Business » Business Terms |
| Country/ Region |
: | United States
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Initialism
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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.
The full form of ADP is Actual Deferral Percentage
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