Use the Benefit Plan section in the System Data area of the Admin/Config menu to add a Benefit Plan. There are three steps:
Step 1: Click on the Add Benefit Plan button and enter basic information about the plan.
Category –Used to segregate the different types of benefits such as medical, dental, vision, life insurance, etc. for purposes of selection and reporting. Choose from a list of options.
Plan Type –Used to describe the type of plan (ex. PPO, HMO, etc. for Medical plans). Choose from a list of options or enter a new type. Any new type entered will be added to the list of options for future selection.
Status – Used to keep track of the status of each plan. Choose from a list of options that are set up in the Benefit Status area in the System Data section of the Admin/Config menu.
Plan Name – A descriptive name used to identify the plan for internal use.
Notes – Additional information as needed.
Step 2: Enter details of the plan
Enrollment Name – Official plan name.
Plan ID – Official plan ID.
Carrier – Name of the provider of the benefit plan.
Inception Year – The year the plan was originally offered.
Open Enrollment Start Date – Date when employee enrollment or employee changes can be made.
Open Enrollment End Date – Date when changes or employee enrollment ends.
Pay Frequency – Used to define the timing for the benefit payments (such as monthly, bi-weekly, etc.). Choose from a list of options that are defined in the Pay Information as part of System Data. This is set up as a default for the plan but can be overridden at the employee level depending on circumstances.
# of Payments – Used to calculate the benefit payment amount per pay frequency. This is set up as a default for the plan but can be overridden at the employee level depending on circumstances.
Step 3: Enter the rate information in the Rate Management section.
Pick-up Type – The default setting used to identify how the benefit is paid (Employee paid, Employer paid or shared). Select from the list of options. This amount can be overridden at the employee level.
Premium Rate Type – Used to identify whether the premium rate entered is an annual total, a per pay total, a percentage value, etc. Choose from the list of options.
Incremental Amount – Used primarily for life and AD&D insurance to indicate the allowable block of insurance. It is used for system calculations so it must be entered if there is a corresponding rate schedule. For example, the insurance could be purchased in blocks of $5000. If applicable, enter the amount.
Max Coverage – Used primarily for life and AD&D insurance to indicate the maximum amount of insurance that can be purchased. This is for information only.
Coverage Type – Used to identify the benefit coverage option such as Employee, Family, etc. Choose from a list of options. Coverage type options are set up in the Benefit Setup section.
Coverage Tier – Used to identify the level of benefit. Enter a short name or description such as Basic, Extended, $1000 (i.e. an amount). This can be used to differentiate between two or more tiers of premiums for a single coverage type. Even if there is only one premium rate, you must enter a Coverage Tier such as Basic or Standard. Coverage Tiers can also be set up in the System Data section of the Admin/Config menu
Employee Premium – The default dollar amount, percentage, or rate the Employee pays for the benefit at for the corresponding Coverage Type and Tier. This amount can be overridden at the employee level. This value needs to correspond to the Premium Type selected above. If the Premium Type is defined as an annual total, then an annual dollar amount must be entered. If it is defined as a monthly total, then a monthly dollar amount must be entered. If it defined as a percentage of salary, then a percent must be entered. If it is defined as a multiplier, then the rate must be entered.
Employer Premium – The default dollar amount, percentage, or rate the Employer pays for the benefit at for the corresponding Coverage Type and Tier. This amount can be overridden at the employee level. This value needs to correspond to the Premium Type selected above. If the Premium Type is defined as an annual total, then an annual dollar amount must be entered. If it is defined as a monthly total, then a monthly dollar amount must be entered. If it defined as a percentage of salary, then a percent must be entered. If it is defined as a multiplier, then the rate must be entered.
Default Tax Rate – Used to identify whether the benefit is paid with pre-tax or post-tax dollars. Select one of the two designated options.