Defining options amount range

This procedure outlines tasks that enable you to set up contributions. Use this procedure to define contributions for plans in which contributions are associated with coverage options and are based on salary, age, or years-of-service ranges. Each coverage option is associated with a different rate table which contains the rates for the option. Any amounts on this form use the currency associated with the plan on Benefit Plan (BN15.1).

Note: If the plan does not have unique contributions for specific employee groups, you must define this form only once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group with unique contributions. If you define multiple contribution records for one plan, you may leave the employee group field blank on one of the records. You can use the application to apply the record with no employee group to all eligible employees who do not belong to the group attached to the other record.
  1. Access Benefit Plan (BN15.1).
  2. Select the Company, Benefit Type, and Plan to define options amount range.
  3. Click Inquire.
  4. Click Contrib. The Company, Benefit Type, and Plan are already filled in when Options Amount Range (BN18.2) is displayed.
  5. Select the plan participants for the contribution record from the Coverage Type field.
  6. Specify the start date for the contribution.
  7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contributions applies.
    Note: If you leave the group field blank, you can apply the record with no employee group to all eligible employees who do not belong to the group attached to the other record.

    If you are defining contributions for COBRA participants, leave this field blank.

    Note: If you define contributions by employee group, ensure employee groups are defined so that an employee can belong to only one group at a time. If an employee belongs to more than one group for which contributions have been defined, benefit entry programs and benefit update reports show an error.
  8. Define calculation attributes for this contribution.Specify this information:
    Calculation Type

    Select the method the contribution is calculated.

    If every employee in a group pays the same amount for a coverage option, select Flat Amount.

    If you are defining contributions for COBRA participants and retirees, select Flat Amount.

    If the annual contribution is a percent of the employee's annual salary, select Percent of Salary.

    If the contribution is a percent of the employee's pay period wages, select Flat Percent.

    Note: The calculation type selected must match the calculation type defined on the deduction codes that are attached to the plan.
    Contribution Tax Type

    Select whether the employee contributions are pretax, after-tax or both pretax and after-tax.

    If the plan does not allow for employee contributions, select No Employee Contribution.

    If you are defining contributions for COBRA participants and retirees, select After-Tax.

    Note: This must match with the deductions attached to the plan.
    Default Tax Type

    If employees can select between pretax and after-tax contributions and you intend a tax type to default on benefit entry forms, select the contribution tax type as the default. You can override the default contribution tax type on benefit entry forms.

    If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field.

    Rate Table Type

    To use a rate table to calculate contributions, select the rate table.

    Note: If you add on BN18.2 and a rate table is attached BN18.8 opens automatically.
  9. If you selected a rate table, click Criteria. The Salary Age Service (BN18.8) is displayed. Determine an employee's salary, age, and years of service. Fill in the appropriate fields for the rate table you selected on the Options Amount Range (BN18.2).
  10. Click OK. The Options Amount Range form is displayed.
  11. Click Options. The Options Rates Table (BN19.2) form is displayed. Select those rate tables you associated with the coverage options. The coverage options you defined for the plan on Coverage Options (BN17.1) is displayed.
  12. Click Add. The BN19.2 closes and returns you to BN18.2.
  13. Click Add.

Related reports and inquiries

Function Form
List benefit plan information. Plan Parameter Listing (BN215)
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