Flex Credits (BN08.1)
Use Flex Credits (BN08.1) to define
- the basis for which employees receive flex credits in a flex plan for one flex plan year, and
- how much of an employee's salary can be spent on a pre-tax basis. Use BN08.1 before the beginning of each flex plan year.
Processing Effect
The parameters you define in this form are used to calculate flex credits for employees in BN45.1 (Employee Flex Credits) and BN145 (Flex Credits Calculation).
More Information
You have the following methods to give employees flex credits before they elect benefits.
- The same amount to every eligible employee. For example, all employees in a flex plan receive $1,000 to buy benefits.
- As a percentage of each employee's salary. For example, employees receive flex credits equal to 10 percent of their salary. An employee who earns $30,000 receives $3,000 to buy benefits.
- An amount for employees' age, years of service, number of covered dependents, and lifestyle points. For age and service, you can give credits based on an employee's annual salary or as a flat amount. For example, 50 year-old employees receive $3 for each $1,000 of their salary. A 50 year-old employee who makes $50,000 receives $150 (50,000/1,000 = 50 x 3 = 150).