Contribution types

For each plan, you can define unique contributions. Contributions can be flat amount premiums, calculated amounts, or amounts chosen by the individual.

This table outlines the major differences between the contribution types. You can use the table to help decide which types best fit your plan.


Contribution Type	Attributes	When to Use	Examples
No Contribution	Who is eligible: Employee, COBRA Participant, Retirees	Use for benefit plans that will not track any contributions, either by the individual, or employer-paid.	A vision discount plan for which the employer pays a flat annual fee. Cost is not tracked based on enrollment in the plan, only coverage.
Options Amount	Who is eligible: Employee, COBRA Participant, Retirees Calculate as Flat amount,% of Salary, Flat% Use with Flex plans, define amount	The cost for each coverage option is a flat amount and is the same for all individuals in a group. Coverage defined as coverage options Cost of coverage options is same for all individuals in a group	A Health plan with a different rate for each option under the plan. Individuals pay $400 for single coverage or $1100 for family coverage under a health plan.
Options Amount Range	Who is eligible: Employee, Retirees Calculate as Flat amount,% of Sal., Flat% Use with Flex plans, define amount Can use rate tables to vary contributions by Salary, Age, Years of service within each of those 3 types of rate tables, you can also define different rates depending on whether those enrolled are smokers.	The cost for each coverage option varies based on salary, age or years-of-service ranges for individuals in a group. Coverage defined as coverage options Cost of coverage options varies based on salary, age or years of service for individuals in a group	A health plan in which employees who earn up to $50,000 pay a different rate for each option than employees who earn more than $50,000. An employer may reward years of service by paying a larger share of the cost of health insurance. Individuals with less than five years of service pay $450 for single coverage, while individuals with more than five years of service pay only $325, with the difference added to the employer's share of the cost.
Flat Contributions	Who is eligible: Employee, COBRA Participant, Retirees Calculate as Flat amount,% of Sal., Flat%, Rate Table Use with Flex plans, define amount Can use rate tables to vary contributions by Salary, Age, Years of service within each of those 3 types of rate tables, you can also define different rates depending on whether those enrolled are smokers.	The cost is a flat amount for all individuals in a group. The cost may be based on employee's salary, age, years of service but does not vary with level of coverage. Coverage defined as coverage amount or no coverage Cost for the benefit is not based on the benefit's coverage amount	A dependent life plan in which all individuals pay the same amount. An employer-provided Employee Assistance Plan has a flat cost to the company of $100 for each covered individual.
Salary or Coverage Rate Table	Who is eligible: Employee, COBRA Participant, Retirees Use with Flex plans, define amount Can use rate tables to vary contributions by Salary, Age, Years of service within each of those 3 types of rate tables, you can also define different rates depending on whether those enrolled are smokers.	The cost is calculated by multiplying a rate times the individual's amount of coverage or salary. The rate may be based on age, salary, or years of service. Coverage defined as coverage amount Annual contributions are based on benefit's coverage salary or coverage amount	An employee life plan in which rates are based on the individual's amount of coverage. The cost of a disability plan is $.75 per $1,000 of coverage in the plan, where coverage is 60% of an individual's base salary.
Contribution Limits	Who is eligible: Employee, COBRA Participant Min and Max limits, Amount each pay period, Annual amount,% of Sal. Use with Flex plans, define amount	Contributions are designated by the individual, up to a specified limit. Coverage defined as no coverage	A spending account in which the employer limits an individual's contribution. A vacation plan to define the maximum number of hours individuals can buy or sell and the cost of those hours. A medical reimbursement account can be used by individuals to contribute any amount up to $2,000 per year.
Match Limit Schedule	Who is eligible: Employee Limit employee pretax, after-tax and total contribution as a percent of salary Limit the matched contribution by % Use Years of service to vary contributions	Use for benefit plans where employee contributions are matched by the employer up to a specific limit. The match is determined as a percentage, and may vary based on years of service. Coverage defined as no coverage Employees specify percent or amount contributions that are matched by the company	The employer matches 50% of an employee's contribution up to 4%. If an employee contributes 3%, the company match is 1.5% (0.503). If the employee contributes 6%, the employer match is 2% (0.504). A 401(k) plan where an employee may contribute up to 15% of their eligible earnings and the employer match is 50% of the employee's contributions up to 8%.
Match Percent Schedule	Who is eligible: Employee The company match is calculated as a percentage of the employee's contribution and can be fixed or cumulative. If the match calculation is fixed, the company match directly corresponds to the percent of the employee's contribution. If the match is cumulative, the company match includes all contribution levels up to the level the employee elected.	Use for benefit plans where employee contributions are matched by the employer, and the amount of the match varies over the range of possible contribution levels. Coverage defined as no coverage Employees specify percent or amount contributions that are matched by the company	A plan matches: 50% of employee contributions from 1% up to 4% and 25% of employee contributions from 5% up to 10%. If the match calculation is fixed and an employee contributes 3%, the employer match is 1.50 (0.5 * 3). 7%, the employer match is 1.75 (0.25 * 7). If the match calculation is cumulative and an employee contributes 3%, the employer match is 1.5 (0.5 * 3). 7%, the employer match is 50% of the first 4% and 25% of the next 3%, or 2.75% (0.5 * 4 + 0.25 * 3). A 403(b) plan where an employee may contribute up to 12% of their eligible earnings, and the employer match is 100% on the first 1%, an additional 60% on the next 4%, and an additional 40% on the next 2% of contribution.
Contribution Limits Rate Table	Who is eligible: Employee The limits and employer contribution are defined by the number of dependents enrolled in the prerequisite plan.	Use for Health Savings accounts only. A rate table defines the contribution limits based on dependents covered. In addition to defining limits, these define employer contributions.	A health savings plan provides the employee $500 in employer contributions when only the employee is covered by the high deductible health plan. It provides $750 in contributions if the employee has one covered dependent or $1000 in contributions for more than one dependent.