Setting Up a Benefit Plan

To maintain the client's group benefit, retirement, flexible spending, employer match, and HSA match plans, use the Benefit Plan Setup form.

Note: To quickly access the Client Benefit Plan Import form, select Import Client Benefit Plans. (Set the Plan Class to Group Benefit to view this quick link.) You can use the Client Benefit Plan Import form to import the client benefit plan. After that, you must set up a data file and a benefit import definition.

Benefit plans must first be set up at the system level. When this is done, each plan offered by the client is established in Benefit Plan Setup.

Note:  If your organization is using Benefits Enrollment, the forms for flexible spending plans will display in enrollments only if the plans are set up in Benefit Plan Setup and in the Benefits tab in Client Details. see Setting Up Client Benefits for more information.

You can access benefit-related features and settings using the Actions menu:

• Viewing the Audit Log
• Using a Default Benefit Plan Template
• Viewing Employees Assigned to a Benefit Plan
• Maintaining Benefit Eligibility Groups
• Setting Up Employee Enrollment Conditions
• Establishing Eligibility by Benefit Group: Displays only when you select Flexible Spending in the Plan Class drop-down and select the Use Benefit Groups option.
• Clone Benefits: Creates new benefit plans for this client based on the plans for another client.

Establishing Basic Information

Establish the basic information for the plan in the Benefit Plan Setup panel.

Note:  Different panels display on this form depending on the selected Plan Class. Refer to the appropriate panel descriptions for the plan you are editing.

To establish basic information about a plan:

1. Open the Basic Plan Setup panel.
2. Set the following parameters.
Use this option To define this
Plan Class The plan class (required): this determines the other panels that display on the form.
Plan ID

The ID of the benefit plan you want to create or view (required). The system displays the plan information on the rest of the form.

Note:   

• You cannot delete a benefit plan using the Benefit Plan Setup form if there are existing benefit rules for that Plan ID for the client as this will orphan the associated benefit rules and can cause payroll errors along with other issues. If you try to delete a benefit plan from the Benefit Plan Setup form and if there are existing benefit rules for that Plan ID for the client, you will receive an error stating There are Benefit Rules assigned to this benefit plan. Please remove all rule references. You can only delete a benefit plan from the Benefit Plan Setup form if there are no existing benefit rules for that Plan ID for the client or after you have removed all the benefit rules for that Plan ID for the client.
• You cannot delete a benefit plan using the Benefit Plan Setup form if there are associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Active, Terminated, or COBRA as this will orphan the associated Employee Benefit Enrollment records and can cause payroll errors along with other issues.
• If you try to delete a benefit plan from the Benefit Plan Setup form and if there are associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Active, Terminated, or COBRA, you will receive an error stating This plan cannot be deleted. There are employees assigned to this benefit plan with enrollment history. Example: Employee Enrollment for Employee ID [XXXXX] and Effective Date [XX/XX/XXXX].
• If you try to delete a benefit plan from the Benefit Plan Setup form and if there are associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Pending, Waived, or Eligible, you will receive a warning stating There are employees assigned to this benefit plan with an enrollment status of pending, waived and/or eligible. Do you wish to continue?
• Click Yes to delete the selected Plan ID.
• Click No to return to the Benefit Plan Setup form with the selected Plan ID and associated data populated.
• You can only delete a benefit plan from the Benefit Plan Setup form if there are no associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Active, Terminated, or COBRA.
Status The status of the selected plan (required).
Start Date

The date when the plan becomes active (required).

Employees can enroll in the plan only with an effective date on or after this date.

Stop Date

The date when coverage under this plan ends. This applies only when the plan is no longer offered.

Employees cannot enroll in the plan after this date.

Plan Anniversary Override Month and Day

Displays only if you select Plan Class as Retirement. This field allows users to override Plan Anniversary Month selection made for this field on the Retirement Plans form.

Note:  While using Plan Anniversary in the calculation of the Next Auto Escalation Date, the system uses the value defined in the Plan Anniversary Override Month and Day field on the Benefit Plan Setup form. If the plan anniversary override value is not defined, then the system uses the value defined in the Plan Anniversary Month and Day field on the Retirement Plans form.

If both the above mentioned fields are left blank, then the system uses the value defined in the Start Date field on the Benefit Plan Setup form as the plan anniversary date.

Deemed ROTH Override

Allow you to override Deemed ROTH selection made on the Retirement Plans form. Additionally, the selection that you make in the Deemed ROTH field on the Retirement Plans form is displayed as read-only next to the Deemed ROTH Override field.

This drop-down field has the following options:

• -Select- - This option uses the same logic as the No (Default) option.
• No (Default) - Pre-tax Catchup contributions is taken as pre-tax until total pre-tax contributions equals the 402G limit. Once the 402G limit is reached, no further Pre-tax or Pre-tax Catchup will be taken for contributions.
• Pre-tax Catchup to ROTH Catchup after 402(g) limit - This option will be available with the January release. Currently, this selection this option uses the logic of No (default) option.
• Pre-tax Catchup to ROTH Catchup before 402(g) limit - Pre-tax Catchup contributions will be taken as a ROTH Catchup regardless of whether the total pre-tax contributions equal the 402G limit.
• Pre-tax to ROTH and Pre-tax Catchup to ROTH Catchup after 402(g) limit - Pre-tax and Pre-tax Catchup contributions may be taken up to the point when total pre-tax contributions equal the 402G limit. At this point, all pre-tax elections will be taken as ROTH and all Pre-tax Catchup will be taken as ROTH Catchup contributions.

TPA Plan ID Override

If required, the TPA Plan ID Override code to associate with this benefit plan.

Use Benefit Groups

This field allows you to determine employee eligibility by benefit group. Selecting this checkbox displays the Benefit Groups configured with eligibility for the selected Plan ID. When this checkbox is selected, the existing Eligibility Criteria section is not displayed on the form. Additionally, you can access the Eligibility by Benefit Group modal form by clicking the Eligibility by Benefit Group option under the Actions menu. This modal form displays the same fields that are displayed in the Eligibility Criteria section.

This option is available only when Flexible Spending or HSA Contribution is selected in the Plan Class list.

High Deductible Plan

Indicates whether or not a plan is an HDHP plan.

Note:  Please note the following:

• This field is displayed only when you select Plan Class as Group Benefit.
• The value displayed in this field will be based on the current setup defined on the Group Benefit Plans form.

Additionally, please note the following validations:

• If on the Group Benefit Plans form, the Insurance Class is Medical and the High Deductible Plan field is:
• Checked: then on the Benefit Plan Setup form, the High Deductible Plan field displays Yes.
• Unchecked: then on the Benefit Plan Setup form, the High Deductible Plan field displays No.
• If on the Group Benefit Plans form, the Insurance Class is set to any option other than Medical, then on the Benefit Plan Setup form, the High Deductible Plan field displays N/A.

Exempt take on employees from Minimum Days of Service Requirement

When you select Plan Class as:

• Retirement: and you select the Exempt take on employees from Minimum Days of Service Requirement checkbox, then the system waives the waiting period for take-on employees.
• Employer Match: and you select the Exempt take on employees from Minimum Days of Service Requirement checkbox, then the system waives the waiting period for 401(k) employer match so that employees can continue receiving contributions without interruption.

Note:  Please note the following:

• This checkbox is an optional field and the default is set to unchecked.
• This option is only functional when the last hire date and the PEO start date are not same.
• A read-only field named Global level Setting displays to inform you of the Global level setup. Any Client level settings for the Exempt take on employees from Minimum Days of Service Requirement field will override the Global level setting.
• If this field is checked, then on the Calculate 401k Eligibility form, while calculating the 401k eligibility, the logic to override the eligibility rules for take-on employees so that they are eligible for their 401k contributions and/or match as soon as they start with the new company without requiring them to meet the defined waiting period is taken into consideration.
• Similarly, on the Benefit Utilities form, while running the SH2 Auto Enroll utility, the same logic as defined above is taken into consideration.

View Deduction/Bill Codes

When you select the Group Benefit option in the Plan Class, along with selecting the Plan ID and Status, selecting this link opens the Plan Deduction and Billing Codes form. This read-only form displays the deduction and billing codes used for the selected plan in a grid format. The column headers include Code, Description, Deduction Type, and Rebate Bill Code.

In addition, this form displays whether the plan is set up as a Section 125 plan, which assists in determining the deduction code for most enrollees.

Note: The Section 125 Eligible field is enabled on the Group Benefit Plans form.

View Benefit Rules

Click this hyperlink to open the Benefit Rules modal form and view the list of Benefit Rules and their effective dates for the Plan ID indicated on the Benefit Plan Setup form.

On the modal form that is displayed:

• If a benefit rule does not exist for the on the given Plan ID and Benefit Group combo, then the Effective Date column displays Not Found.
• For effective dates greater than the current system date, the Effective Date column displays the future date along with Future written next to the date.
• Click the date in the Effective Date column to open the Benefit Rules form to view the rule with the pre-populated data in the fields such as Benefit Group, Benefit Plan, and the Effective Date.
• In the Effective Date column, click the Not Found hyperlink to open the Benefit Rules form with the Benefit Group and Benefit Plan values pre-populated so that you can enter a new rule for the given plan or the group and add an effective date.

Click the Setup New Rule hyperlink to open the Benefit Rules form and view the preselected Benefit Plan.

The View rules that are not found checkbox allows you to filter the benefit group that has the value of Not Found in the Effective Date column.
3. Click Save.

Establishing Rate Information

To establish rate information for Group Benefit plans, use the Group Benefits Setup panel.

To establish rate information for group benefit plans:

1. Open the Group Benefits Setup panel.
2. Set the following parameters.
Use this option To define this
Billing Rate Group The assigned Billing Rate Group for this plan, if it is a billing rate plan. When you click the Billing Rate Group hyperlink, the selector will only display the active billing rate groups assigned to the Plan on the Benefit Plan Setup form.
Premium Rate Group The assigned Premium Rate Group for this plan, if it is a premium rate plan. When you click the Premium Rate Group hyperlink, the selector will only display the active premium rate groups assigned to the Plan on the Benefit Plan Setup form.
Pending Rate Group

The Pending Billing Rate Group for this plan, if appropriate. When you click the Pending Rate Group hyperlink, the selector will only display those billing rate groups assigned to the Plan on the Benefit Plan Setup form which have an Effective Date tied to the Billing Rate Group.

• When the custom feature code named PENDING-BILL-RATE-GLOBAL is NOT assigned to the System Parameters form for a client, then on the Benefit Plan Setup form, under the Group Benefits Setup section, the Pending Rate Group field will display as Pending Billing Rate Group.
Pending Rate Group Effective Date

The date when the pending billing rate group becomes effective.

• When the custom feature code named PENDING-BILL-RATE-GLOBAL is NOT assigned to the System Parameters form for a client, then on the Benefit Plan Setup form, under the Group Benefits Setup section, the Pending Rate Group Effective Date field will now display as Pending Rate Group Effective Date.

Pend Prem Rate Group

The Pending Premium Rate Group for this plan, if appropriate. When you click the Pend Prem Rate Group hyperlink, the selector will only display those premium rate groups assigned to the Plan on the Benefit Plan Setup form which have an Effective Date tied to the Premium Rate Group.

• When the custom feature code named PENDING-BILL-RATE-GLOBAL is assigned to the System Parameters form for a client, then on the Benefit Plan Setup form, under the Group Benefits Setup section, the Pend Prem Rate Group field will display as Pending Premium Rate Group.

Pend Prem Rate Group Effective Date

The date when the pending premium rate group becomes effective.

• When the custom feature code named PENDING-BILL-RATE-GLOBAL is assigned to the System Parameters form for a client, then on the Benefit Plan Setup form, under the Group Benefits Setup section, the Pend Prem Rate Group Effective Date field will display as Pending Premium Rate Group Effective Date.
Rule Template The Rule Template to use to calculate eligibility, coverage, and employee contributions if there is no client- or plan-specific rule.
One Month Prepay

Whether to bill the client and deduct the amounts from the employees for the next month in the current month. For example, bill and deduct in July for August.
Add One Month For Prepay

Whether the system should check for and use any new rates and rules in the upcoming month. For example, during a July payroll, PrismHR would check if there are rules and rates that go into effect in August.

• The field One Month Prepay must be flagged in order for you to flag the Add One Month For Prepay field.
• If the One Month Prepay field is not flagged and you try to flag the Add One Month For Prepay field, you will receive a warning message stating One Month Prepay must be selected to use this option.
• If the fields One Month Prepay and Add One Month For Prepay were initially flagged and the field One Month Prepay is now unflagged, you will receive a warning message stating Removing One Month Prepay will automatically remove Add One Month For Prepay.
• Click OK - Add One Month For Prepay field will get unflagged.
• Click Cancel - The One Month Prepay and Add One Month For Prepay fields will remain as flagged.

Annual Periods

The Annual Periods to use to calculate the employee deduction amount, either 48 or 52 deduction periods.

Coverage Ends On

The date coverage ends when an employee is terminated. You can select a specific date (for example, 16th Day of the Month) from the drop-down menu, or the following:

• Employee's Date of Termination: Coverage ends on the date the employee is terminated.
• End of Month following Termination: Coverage ends at the end of the month in which the employee is terminated.
• Employee's Term Date if prior to 15th of Month else End of Month: If the employee's termination is before the 15th of the month, coverage ends on the date the employee was terminated. If the employee's termination is on or after the 15th of the month, coverage ends at the end of the month in which the employee is terminated.

This field becomes a non-mandatory field if the Coverage Ends On field is defined at the global level on the Group Benefit Plans form. However, you can select any options to set the Coverage Ends On and this will act as an override to the global level setting.

When you select any Coverage Ends On option on the Group Benefit Plan form, then that option is displayed with a Default tag in parenthesis in the Coverage Ends On field on the Benefit Plan Setup form. This setting provides visibility to help you identify the setting that is being used at the global or the system level.

Use Billing Wash Rule?

Whether the system applies the billing wash rule to the group benefit plan for new hires and terminated employees.

The Use Billing Wash Rule? is now a drop-down has two options:

• Select Yes to enable it, and when enabled, the Wash Rule Date On/Before field displays. You can select for the system to apply the wash rule on or before the 10th Day of the Month through the 20th Day of the Month, or at End of Month.
• Select No to not apply the wash rule at the global level.

When you select any option in the Use Billing Wash Rule? field on the Group Benefit Plan form, then that option is displayed with a Default tag in parenthesis in the Use Billing Wash Rule? field on the Benefit Plan Setup form. This setting provides visibility to help you identify the setting that is being used at the global or the system level.

For examples on applying the billing wash rule, see Applying the Billing Wash Rule.

Cafe Plan Eligible

Whether this benefit is eligible for the client's cafe plan. For example, this option is selected if the client offers $1500 to cover benefit plans and this plan qualifies.

Benefit Billing Frequency

When plan billing occurs. If you select one of the monthly options, PrismHR bills the client the whole portion at the beginning of the month, and then gives credits for the other pay periods in that month. If you do not make a selection, the system uses the pay period.

Payroll Deduction Frequency

Whether to override the employee's normal pay period payroll deduction frequency. The standard is each pay period.

Payroll Deduction Frequency

If instructed by the PrismHR Customer Support Team, the frequency for calculating premiums.

Premium Calculation Month/Day

The month and day to use to calculate plan premiums.

Client Plan Renewal Month/Day

Allow you to provide a plan renewal date for a benefit plan. Select is the default option in both the month and day drop-down lists. A tool-tip is provided with a message stating This field will be used as an override to the date specified on the Group Benefit Plans form. If one exists for the Benefit Plan selected, the Group Benefit Renewal date will be displayed. which explains the functionality of this field.

Note:  Please note the following:

• This field is used as an override to the date specified on the Group Benefit Plans form (if one exists for the Benefit Plan selected).
• On the Group Benefit Plans form, when you assign a value to the Plan Renewal Month field, then that value is displayed as read-only field to the right of the Client Plan Renewal Month/Day field with a label named Group Benefit Renewal on the Benefit Plan Setup form.

Network Selection Rule

Network Selection Rule: For future development. Does not currently impact the functionality of PrismHR.

Carrier Account

A Carrier Account. It does not need to be one of those entered in Group Benefit Plans, but if it is you must enter the same risk factors in the Risk Factor panel.

Max Days Back Dating

Client-level limit (in days) for back-dating coverage start/end dates.

Note: If the Max Days Back Dating field does not have a value defined on the Benefit Plan Setup form, but has a value defined for this field on the Group Benefit Plans form, then the system uses the value defined on the Group Benefit Plans form as default.

Auto Enrollment

Whether to enable automatic enrollment and set employee waive options for this benefit plan.

This option depends upon other settings in the system; see Setting Up Waive Options for more information.

• If selected, the employee auto enrolls in the benefit plan and does not have the option to waive coverage.
• If not selected, the employee has the option to waive coverage in the benefit plan.

Note: Please note the following:

• On the Group Benefit Plans form, if you set Auto Enroll field to No, and then if you select the Auto Enrollment checkbox then a warning pop-up stating Benefit Plan <The selected Plan ID> is flagged as Auto Enroll ‘No’ on the Group Benefit Plans form. This will override the value assigned on the Benefit Plan Setup form. is displayed. A warning message stating This plan is flagged as Auto Enroll ‘No’ on the Group Benefit Plans form. This will override the value assigned on the Benefit Plan Setup form. is also displayed below the selected Plan ID.
• On the Group Benefit Plans form, if you set Auto Enroll field to Yes, and then if you select the Auto Enrollment checkbox then a message stating This plan is setup to auto enroll is displayed.

Suppress O/E Auto Term

Whether to prevent the posting procedure from terminating enrollments that are active in that benefit plan.

Suppress Benefit Adjustment on Employee Termination

Whether the client wants to suppress benefit adjustments that would normally have been created due to payroll timing if an employee is terminated.

The Suppress Automatic Benefit Adjustment field in the Benefits tab in the Client Details form overrides this field and must also be selected for this setting to go into effect.

Default Network ID

The Default Network ID that the system uses as a default for employees who enroll in the plan.

Rule Date to Use for Take-On

A date that is greater than the PEO start date. This avoids a PEO start date that is less than the benefit rule date (causing employees to not be offered benefits),

Earliest Premium Rate Date to Use

Earliest Billing Rate Date to Use

The available premium and billing rate effective dates set up at the system level for the group benefit plan. If the date you want is not available in the list, set up the effective date and rates at the group benefit plan level.

If you have clients with multiple benefit plan billing and premium rates, select these dates to offer those clients interim rates before the next open enrollment date.

Setting Up Fringe Benefit Pay Codes

To treat a client-paid portion of this benefit as a fringe benefit, use The Fringe Benefit Pay Codes panel. The system automatically adds the pay code and amount to the Other Earnings section of the calculated regular pay vouchers.

To set up a fringe benefit pay code:

1. Open the Fringe Benefit Pay Codes panel.
2. Set the following parameters.
Use this option To define this
Fringe Benefit Pay Code Each Fringe Benefit Pay Code to add to the calculated regular pay vouchers.
Add to Retirement Pay Whether to include the pay code in 401(k) wages when calculating retirement benefits.

Only apply to S-Corp Principal Employees

Whether only S-Corp Principal employees will have the client benefit portion treated as a fringe benefit. Otherwise, this portion is treated as a normal deduction.

Note the following:

• If you enable this field, on the Benefit Plan setup only employees who the system designates as an S-Corp Principal employee will have the client-paid portion of the benefit treated as a fringe benefit through the payroll process. (If they are not an S-Corp Principal employee then the employer portion is not treated as a fringe benefit.)
• If you do not enable this field, on the Benefit Plan setup the system performs as usual and treats the client-paid portion of that benefit as a fringe benefit, assigning it to the defined fringe benefit Pay Code through the payroll process.
• The system performs an additional validation during payroll calculation, which checks each employee who is enrolled in the benefit plan to determine if they are an S-Corp Principal. Employees enrolled in the benefit plan who the system designates as an S-Corp Principal must have the client paid portion of that benefit assigned to the defined fringe benefit pay code and listed in Other Payments on their payroll voucher.

Defining Risk Factors

To enter data about risk factors (if necessary), use the Risk Factor panel. The global settings determine whether the risk factor is standard or extended precision, and whether it applies to premiums, billing, or both.

To set up information about risk factors:

1. Open the Risk Factor panel.
2. Set the following parameters.
Use this option To define this
Effective Date The date when the premium risk factor goes into effect.
Premium Risk Factor

The Premium Risk Factor to use as a multiplier when calculating the benefit premiums (both cost and billing) for each unique client/benefit plan combination.

The Premium Risk Factor amount is applied to the calculated premium for the benefit.

If the system uses standard risk factors, the system limits it to two decimal places. (If you enter more, the system rounds it off to two digits.)

Admin Surcharge

Currently this field is suppressed to only allow a blank value. If a user attempts to enter a value in this field, the system displays the following message:

The Admin Surcharge feature is not available in this release.

This field will be available in a future release.

Applying the Hawaii 1.5% Rule

Note:  The Hawaii 1.5% Rule section will only display on the Benefit Plan Setup form for Plan Class selected as Group Benefit. For all other Plan Class, this section will not display on the Benefit Plan Setup form.

To apply Hawaii's Prepaid Health Care Act 1.5% health insurance premium rate to selected benefit groups, use the Hawaii 1.5% Rule panel.

See Using the Hawaii 1.5% Rule for detailed information on how the system processes this calculation. This calculation is not available in Benefits Enrollment.

You can select the Exclude Plan When Calculating Medical Premium Limit option in the Special Options panel in Group Benefit Plans to exclude benefit plans from the Hawaii medical contribution calculation at the system-level.

To apply Hawaii's Prepaid Health Care Act 1.5% rate to selected benefit groups:

1. Open the Hawaii 1.5% Rule panel.
2. Set the following parameters.
Use this option To define this
Benefit Group Each Benefit Group to which the Hawaii 1.5% rule applies. The Group Name displays.
HI 1.5% Rule Applies Whether to apply the Hawaii 1.5% rule to the selected benefit group, otherwise select No.

Defining Participation Requirements at the Client Level

To establish participation requirements ensuring that client and employee enrollments follow carrier guidelines at the client level, use the Participation Requirements panel.

To establish participation requirements criteria:

1. Select a Participation Requirement Option:
• No
• Yes: Enables the Participation Requirement Start Date and Participation Requirement Percentage fields.
• Use System Default: Uses the values defined at the system level. See Defining Participation Requirements at the System Level.
2. In the Participation Requirement Start Date field, enter the date clients must meet the participation requirement.
3. Enter a Participation Requirement Percentage. The value must be a number from 1 to 100.

Establishing Eligibility Criteria

To establish employment type and benefit eligibility requirements for Retirement, Flexible Spending, Employer Match, or HSA Match plans, use the Eligibility Criteria panel.

If you are setting up a flexible spending plan and select the Use Benefit Groups option, this panel does not display. You must set up eligibility criteria in the Eligibility by Benefit Group form, accessible in the Actions menu.

To establish eligibility criteria:

1. Open the Eligibility Criteria panel.
2. Set the following parameters.
Use this option To define this
Employment Status Class Each employment Status Class that is eligible for this benefit plan. If employees of all status classifications are eligible, you do not need to select any statuses.
Employment Type(s) The employment type or types that are eligible for this plan. If employees of all employment types are eligible, you do not need to select any types.

Minimum Age

The minimum age required to be eligible for this plan.

Minimum Days/Months of Service

The minimum days/months of service required to be eligible for this plan. Use the drop-down to select Days or Months.

Minimum Annual Hours

The minimum annual hours of service required to be eligible for this plan.

Eligibility Days From

Whether to count eligibility days from the Hire Date or Status Date for benefit rules calculation of the FSA/HSA Effective Date.

• Hire Date: The employee's original hire date.

If the Eligibility Days From option is set to Hire Date, and the life event Source of Effective Date is set to Benefit Rules, the employee eligibility date is based on the original hire date plus any waiting period.

• Status Date: The Life Event Date.

If the Eligibility Days From option is set to Status Date, and the life event Source of Effective Date is set to Benefit Rules, the employee eligibility date is based on the original Life Event Date plus any waiting period.

Note:  If you select a Plan Class of either Retirement or Employer Match, then the Eligibility Days From field will remain disabled.

Eligibility Date Used

The Eligibility Date Used determines how the system calculates the date employees meet eligibility requirements for this plan.

• Calculated Eligibility Date: The first day of calculated eligibility.
• First of Month after Calculated Date: The first of the month after the date of calculated eligibility.
• First of Quarter after Calculated Date: The first day of the next quarter after the date of calculated eligibility.
• First Semi-Annual after Calculated Date: The first of January or first of July after the date of calculated eligibility.
• If Calculated is 1st of month, use that else next 1st of month: If the calculated date is the first of a month, the system uses that. If it is another day in the month, it uses the first of the following month.

Auto Enrollment

Whether to override the flag at the plan level. If you select this option, you must enter the Auto Enrollment Percent. This field is disabled if a retirement plan is configured with the Employee Deferral Deduction Code flagged to Prohibit Deductions on the Retirement Plans form.

Note:  The Auto Enroll option applies only to Retirement and Employer Match plans.

Auto Enrollment Percent

If automatic enrollment is enabled, this is the deferral percentage at which employees will be automatically enrolled. If you enter a value which is NOT >=3 and <=10, and the Auto Escalator field below is checked then you will get a warning message stating Auto Enrollment Percent must be between 3%-10% when using Auto Escalator. This field is disabled if a retirement plan is configured with the Employee Deferral Deduction Code flagged to Prohibit Deductions on the Retirement Plans form. However, if there is any existing value for the prohibited retirement plan, then the value is displayed but the field remains disabled.

Note:  The Apply Enroll Percent option applies only to Retirement and Employer Match plans.

Auto Escalator

This field only displays if you enable the Auto Enrollment field for a Retirement Plan.

Note the following:

• Unchecked (default): Plans will not automatically escalate contributions annually.
• Checked: In addition to auto-enrollment at a default contribution rate, plans will automatically escalate contributions by 1% each year until they reach a predetermined rate by the employer (between 10 and 15%).

Note:  When you deselect the Auto Escalator field and save the form, then the system checks for any active retirement plan enrollment records that have the Auto Escalation? field enabled on the Retirement Plan Enrollment form. Also, if there are any active retirement plan enrollment records a warning message displays, Auto escalator cannot be unchecked. There are employees using this auto escalator with active enrollments. Example: Employee Enrollment for Employee ID <Employee's ID> and Effective Date <plan's effective date>.
Auto Escalator Max Percent

Enter any value between 10-15 (including up to two decimal places), which is the maximum predetermined benefit rate percentage decided by the employer for that client.

Note: This field only displays if you enable Auto Enrollment. However, you can only edit the Auto Escalator Max Percent after enabling the Auto Escalator field.

Note the following:

• If you enable the Auto Escalator field, this field is mandatory. If you do not enter a value an error message displays, Auto Escalator Max Percent is required when using Auto Escalator.
• If you enter a value outside the permitted range a warning message displays, Auto Escalator Max Percent must be between 10%-15% when using Auto Escalator.

Auto Escalate On

Defines when the auto escalation must occur at the client level. This field only displays if you enable Auto Escalator.

This field has the following drop-down options:

• --Select--: This option is automatically populated when you do not select any other options.(This option operates the same as Plan Anniversary After 12 Months (Default) option)
• Plan Anniversary After 12 Months (Default): When this option is selected, then the calculated date for auto escalation should be the next Plan Anniversary Date which is equal to or greater than the Status Date (considered as Plan Anniversary date) assigned to the enrollment record (found on the Retirement Plan Enrollment form) plus 12 months.
• Plan Anniversary: This option is considered to be the Start Date assigned to the Retirement Plan on the Benefit Plan Setup form. The plan enrollment uses the next Plan Anniversary Date as the calculated date for auto escalation.
• Employee Enrollment Anniversary: This option is considered to be the Start Date assigned to the Employee’s retirement enrollment plan.

Specifying Whether to Include Pay Codes

To indicate any pay codes that are a part of retirement earnings, use the Include/Exclude Pay Codes panel.

To indicate pay codes that are part of retirement earnings:

1. Open the Include/Exclude Pay Codes panel.
2. Set the following parameters.
Use this option To define this
Type Whether the pay codes are Included or Excluded as part of retirement earnings. You can also leave this field blank (the default setting).
Pay Code

Each Pay Code to include or exclude from the retirement deferral calculations, as determined by the type. The Description displays.

The pay code selected applies only if the employee deferral is a percentage.

Defining the HSA Contribution Amount and Frequency

To establish the amount and frequency of the Health Savings Account client contribution, use the Company HSA Contribution panel. This is displayed only after you select Plan Class as HSA Contribution.

To set up the HSA contribution amount and frequency:

1. Open the Company HSA Contribution panel.
2. Set the following parameters.
Use this option To define this
Contribution Calculation Method

The Contribution Calculation Method to use, if any. You can select Standard, Tiered, Scheduled, or Fixed. The default is Standard. If you select Tiered, Scheduled, or Fixed, the appropriate HSA Contribution panel displays.

Standard:

• The HSA  Contribution entered is an annual contribution, applied at the frequency specified in the HSA Contribution Frequency field.
• Select the Display Employer Amount in Online Enrollment check box to display the employer contribution amount during benefit enrollments, allowing employees to view the amount their employer contributes to the plan.

Tiered:

• The Effective Date of the contribution line.
• The high-deductible Benefit Plan ID.
• The Plan Type (coverage tier).
• The Percent of Tier amount to contribute.

Scheduled:

• The actual Pay Date on which to calculate the scheduled contribution amount.
• Either the Lump-Sum Amount to be contributed on the specified pay date, or the Percent of Tier amount to contribute.

Fixed:

• The Effective Date of the contribution line.
• The high-deductible Benefit Plan ID.
• The Plan Type (coverage tier).
• The Fixed Amount to contribute for the plan ID and plan type.
• The amount of the One TimeContribution if appropriate. This option is available only if the Custom Feature Code ONE-TIME-HSA-MATCH is set in System Parameters.
• Select the Display Employer Amount in Online Enrollment check box to display the employer contribution amount during benefit enrollments, allowing employees to view the amount their employer contributes to the plan.

Dollar Match:

• The configuration of HSA contribution calculation that matches one employer dollar for each employee dollar allocated to the HSA plan.
• Selecting this option defaults the Contribution Applies To field to a read-only Contributing Employees Only option.

Contribution Applies To

To which employees the contribution applies to. You can select Contributing Employees Only or All HDHP Employees. The default is Select which means no option is selected.

• If you do not select any of the options, then any employee with an HSA account added to their Flex Spending Account setup under Elections for the current Plan Year will receive the employer contribution.
• If you select Contributing Employees Only, then any employee with an HSA account added to their Flex Spending Account setup under Elections for the current Plan Year and contributing more than $0.00, will receive the employer contribution.
• If you select All HDHP Employees, then the Account Type field is enabled.
• Account Type: Select the Employee’s Employee Flexible Spending Account setup configured on the given plan's FSA types.
HSA Contribution The HSA  Contribution amount that the client contributes for any employee with a Health Savings Account. (If a different amount is entered on an employee's account, that value overrides this amount.

HSA Contribution Frequency

The frequency of the HSA contribution. The system defaults to pay period.

Maximum Contribution Amount

Here, you can enter the maximum HSA contribution amount in dollar. It is a conditional field and is displayed only when you select Contribution Calculation Method to Dollar Match.
3. Click Save to save the selected Plan ID record.
4. Click Delete to delete the selected Plan ID.
• You cannot delete a benefit plan using the Benefit Plan Setup form if there are existing benefit rules for that Plan ID for the client as this will orphan the associated benefit rules and can cause payroll errors along with other issues. If you try to delete a benefit plan from the Benefit Plan Setup form and if there are existing benefit rules for that Plan ID for the client, you will receive an error stating There are Benefit Rules assigned to this benefit plan. Please remove all rule references. You can only delete a benefit plan from the Benefit Plan Setup form if there are no existing benefit rules for that Plan ID for the client or after you have removed all the benefit rules for that Plan ID for the client.
• You cannot delete a benefit plan using the Benefit Plan Setup form if there are associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Active, Terminated, or COBRA as this will orphan the associated Employee Benefit Enrollment records and can cause payroll errors along with other issues.
• If you try to delete a benefit plan from the Benefit Plan Setup form and if there are associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Active, Terminated, or COBRA, you will receive an error stating This plan cannot be deleted. There are employees assigned to this benefit plan with enrollment history. Example: Employee Enrollment for Employee ID [XXXXX] and Effective Date [XX/XX/XXXX].
• If you try to delete a benefit plan from the Benefit Plan Setup form and if there are associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Pending, Waived, or Eligible, you will receive a warning stating There are employees assigned to this benefit plan with an enrollment status of pending, waived and/or eligible. Do you wish to continue?
• Click Yes to delete the selected Plan ID.
• Click No to return to the Benefit Plan Setup form with the selected Plan ID and associated data populated.
• You can only delete a benefit plan from the Benefit Plan Setup form if there are no associated Employee Benefit Enrollment records for the client for the selected Plan ID that have a status of Active, Terminated, or COBRA.
5. Click Cancel to clear this form at any time. All unsaved changes will be lost.