Simplified Method Clause Samples
The Simplified Method clause establishes a streamlined approach for calculating or determining certain contractual obligations or values. Typically, this clause outlines a less complex formula or process for tasks such as payment calculations, performance assessments, or compliance checks, reducing the need for detailed documentation or extensive verification. By providing a straightforward mechanism, the clause minimizes administrative burden and potential disputes, ensuring efficiency and clarity in contract execution.
Simplified Method. An Employee is a Highly Compensated Employee under this simplified method if (i) the Employee is a 5% owner during the Plan Year; (ii) the Employee's compensation for the Plan Year exceeds $75,000 (as adjusted pursuant to Section 415(d) of the Code); (iii) the Employee's compensation for the Plan Year exceeds $50,000 (as adjusted pursuant to Section 415(d) of the Code) and the Employee is in the top-paid group of Employees; or (iv) the Employee is an officer of the Employer and received compensation during the Plan Year that is greater than 50% of the dollar limitation under Code Section 415(b)(1)(A). The lookback provisions of Code Section 414(q) do not apply to determining Highly Compensated Employees under this simplified method. An Employer that applies this simplified method for determining Highly Compensated Employees may choose to apply this method on the basis of the Employer's workforce as of a single day during the Plan Year ("snapshot day"). In applying this simplified method on a snapshot basis, the Employer shall determine who is a Highly Compensated Employee on the basis of the data as of the snapshot day. If the determination of who is a Highly Compensated Employee is made earlier than the last day of the Plan Year, the Employee's compensation that is used to determine an Employee's status must be projected for the Plan Year under a reasonable method established by the Employer. Notwithstanding the foregoing, in addition to those Employees who are determined to be highly compensated on the Plan's snapshot day, as described above, where there are Employees who are not employed on the snapshot day but who are taken into account for purposes of testing under Section 5.6 or 5.10, the Employer must treat as a Highly Compensated Employee any Eligible Employee for the Plan Year who:
(1) terminated prior to the snapshot day and was a Highly Compensated Employee in the prior year;
Simplified Method. If elected by an eligible Employer in the Adoption Agreement, $50,000 (adjusted by the Adjustment Factor) is substituted for $75,000 in paragraph (1)(A) above, and paragraph (1)(B) above does not apply. An Employer is eligible to make this election only if the Employer maintains significant business activities at which it employs Employees in two (or more) separate geographical areas.
Simplified Method. The simplified method is a modality of the actual indirect costs calculation, and is a way of declaring indirect costs which applies to organisations which do not aggregate their indirect costs at a detailed level (centre, department), but can aggregate their indirect costs at the level of the legal entity. It is a system that can be used if the organisation does not have an accounting system with a detailed cost allocation. This simplified method has to be in accordance with their usual accounting and management principles and practices; it does not involve necessarily the introduction of a new method just for FP7 purposes. Beneficiaries are allowed to use it, provided this simplified approach is based on actual costs derived from the financial accounts of the last closed accounting year. Therefore, beneficiaries using the simplified method shall not submit an adjustment covering the difference between the indirect costs derived from the accounts of the last closed financial year and the indirect costs derived from the financial accounts of the project period. Beneficiaries should be in a position to justify and reconcile the results with the accounting records and be able to demonstrate in case of an audit that the indirect costs are fairly allocated to the research activity/projects. Although each legal entity will use its own system, the minimum requirements for it to be considered a simplified method for FP7 purposes are the following;
Simplified Method. The simplified method is a way of declaring indirect costs which applies to organisations which do not aggregate their indirect costs at a detailed level (centre, department), but can aggregate their indirect costs at the level of the legal entity. It is a system that can be used if the organisation does not have an accounting system with a detailed cost allocation. There are no beneficiaries using the simplified method.
Simplified Method. An Employee is a Highly Compensated Employee under this simplified method if (i) the Employee is a 5% owner during the Plan Year;