Creating flex credit records

This procedure defines the basis on which employees receive flex credits in a flex plan that issues credits before the employees make their benefit elections. A flex credit record must be defined for all full flex plans in order to enroll employees, even if employees receive some or all of their flex credits by enrolling in benefit plans.

  1. Select Benefits > Plans > Flex Plans and select the Flex Credits tab.
  2. Click Create.
  3. Specify this information.
    Flex Credits

    Specify the start date for the credits; usually the beginning of the flex year.

    Benefit Group

    Select a benefit group if the credits are specific to a benefit group.

  4. In the Main tab, specify the Flex Credits rules. You can give flex credits as both a base amount and percent of salary.
    Base Amount

    If the plan gives a base amount of flex credits to employees in a group, specify the amount to give as credit. For example, if you specify 1000, the application gives 1000 flex credits to employees in the benefit group.

    You can give flex credits both as a base amount and as a percent of each employee's salary. If you specify Base Percent, leave this field blank.

    Base Percent

    If the plan gives a base percent of salary as flex credits to employees in a group, specify the percent of an employee's salary to give as credit.

    If the plan gives flex credits as a percent of each employee's salary, specify that percent. For example, if you specify 10, the application gives 3,000 flex credits to an employee who earns $30,000.

    You can give flex credits both as a base amount and as a percent of each employee's salary.

    To base credit only on an employee's salary, leave Base Amount blank.

    Note: 

    If you specify a value here you must define the flex salary rules.

    Unspent Taxable Credits Percent

    Specify the percent of unspent flex credits that employees can add to their gross pay as taxable income. For example, if you specify 80.00 and employee does not spend $1,000 flex credits, the application adds $800.00 to the employee's taxable wages. To add unspent flex credits to the employee's taxable wages, the application creates a standard time record.

    Note: 

    If you leave this field blank, employees lose all unspent flex credits.

    Minimum Total Credits

    Specify the minimum flex credits that an employee can receive. If the total flex credits calculated for an employee is less than this amount, the employee receives this amount.

    Maximum Total Credits

    Specify the maximum flex credits that an employee can receive. If the total credits calculated for an employee are greater than this amount, the employee receives this amount.

  5. In the Pre tax Credits section, specify this information:
    Amount

    Specify the maximum amount that an employee can spend from their regular pre tax earnings to purchase benefits. If there is no limit, leave this field blank.

    Note: 

    Specify a pre-tax amount that is large enough to cover at least two times the maximum amount any employee could spend on benefits. If the employee has spent all of their dollars and had a benefit change, the application considers that the credits have been spent.

    Percent of Salary

    Specify the maximum percent of regular pre-tax earnings an employee may spend to purchase benefits. If employees can spend a percent of their salary on a pretax basis to purchase benefits, specify that percent. If there is no limit, specify 100.

  6. Salary tab - Use to define how the application calculates an employee's salary. See Creating flex credits based on salary.
  7. Age tab - Use to give flex credits based on age of employees. See Creating flex credits based on age.
  8. Service Credits tab - Use to give employees flex credits based on the number of years they have worked at your company. See Creating flex credits based on years of service.
  9. Dependents tab - Use to define the number of credits employees receive based on their number of dependents. See Creating flex credits based on number of dependents.
  10. Lifestyle Credits tab - Use to assign employee's flex credits based on lifestyle. See Creating flex credits based on lifestyle.
  11. Click Save.
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