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An HR Glossary for HR Terms

Glossary of Human Resources Management and Employee Benefit Terms

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Actual Deferred Percentage (ADP)

What is Actual Deferred Percentage (ADP)?

Actual Deferred Percentage (ADP) is the percentage of wages deferred by employees under a salary reduction arrangement (e.g.401(k) plan). The ADP is reviewed to see if a salary reduction arrangement meets the IRS qualification requirements.

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