Calculating adjustments for contributions

When defining contributions, you can specify rules for calculating adjustments. For example, if a benefit starts or stops in the middle of a pay period, you may want to prorate the deduction amount. You can also define retroactive adjustments if one or more pay periods were missed.

When defining or editing a contribution, you use the fields under the Start Adjustments and Stop Adjustments sections to define how adjustments are calculated.

  1. Select Benefits > Plans > Benefit Plans.
  2. Open a benefit plan and select the Contributions tab.
  3. Click Create.
  4. In the Start Adjustments section, specify this information
    Cycles Remaining
    Select this check box to have the number of deductions spread out over the number of pay periods in which benefits are included. For example, the resource is paid semi-monthly and enrolls in dependent care for $2400 beginning July 1. There are 12 remaining pay periods in the year. Each pay period will have a deduction of $200 for dependent care.
    Front Loading
    If the check box for Cycles Remaining is selected, the check box for Front Loading is displayed. Select this check box to let the resource specify over how many pay periods the deductions are to be spread. For example, the resource is paid semi-monthly and enrolls in an HSA for $2400 beginning July 1 and wants the deductions spread over four pay periods. In the next four pay periods, $600 is deducted for the HSA. The remaining eight pay periods will not have a deduction for HSA.
    Deduction Begin
    Specify the date to use as the beginning date for deductions. If this field is left blank, then the deduction start date is the same as the enrollment date. If you want to use a different date, you can select one of these values:
    • Pay Period Start: The begin date for deductions is the first of the pay period with the enrollment start date.
    • Next Pay Period Start: The begin date for deductions is the first of the pay period after the one with the enrollment start date.
    • Closer Pay Period Start: The begin date for deductions is the closest pay period start date to the enrollment start date.
    • First of Month: The begin date for deductions is the first of the month of the enrollment start date.
    • Next Month: The begin date for deductions is the first of the month after the enrollment start date.
    • Closer Month Begin: The begin date for deductions is the closest month beginning to the enrollment start date.
    Calculation
    Specify the calculation to use for the adjustment.

    See Creating calculations.

    Retroactive Adjustments Calculation
    Determines if adjustments are made for enrollments that are created retroactively. Retroactively means that the enrollment is finalized and the start date is before the start of the current pay period or month. Whether pay period or month is used is defined by the calculation.
    Count
    Specify how retroactive adjustments are applied. You can select one of these options:
    • One: Combines all adjustments for all missed periods into one adjustment.
    • Missed Periods: Creates a separate adjustment for each period that is missed.
    Email Template
    Select the email template that is to be used when there is a retroactive start for an enrollment. The email will be sent automatically when a template is associated with the contribution rule.
  5. In the Stop Adjustments section, specify this information:
    Deduction End
    Specify the date to use as the ending date for deductions. If this field is left blank, the deduction end date is the same as the end date of the enrollment. If you want to use a different date, you can select one of these values:
    • Pay Period End: The ending date for deductions is the end of the pay period with the enrollment end date.
    • Prior Pay Period End: The ending date for deductions is the end of the pay period before the one with the enrollment end date.
    • Closer Pay Period End: The ending date for deductions is the closest pay period end date to the enrollment end date.
    • End of Month: The ending date for deductions is the end of the month of the enrollment end date.
    • End of Prior Month: The ending date for deductions is the end of the month before the enrollment end date.
    • Closer Month End: The ending date for deductions is the closest month end to the enrollment end date.
    Calculation
    Specify the calculation to use for the adjustment.

    See Creating calculations.

    Retroactive Adjustments Calculation
    Determines if adjustments are made for enrollments that are stopped retroactively. Retroactively means that the end date is before the start of the current pay period or month. Whether pay period or month is used is defined by the calculation.
    Count
    Specify how retroactive adjustments are applied. You can select one of these options:
    • One: Combines all adjustments for all missed periods into one adjustment.
    • Missed Periods: Creates a separate adjustment for each period that is missed.
    Email Template
    Select the email template that is to be used when there is a retroactive stop for an enrollment. The email will be sent automatically when a template is associated with the contribution rule.