How do I Define Benefit Contributions?

After you define the coverage, using the procedures in Chapter 9, you define the contribution. The contribution type depends on the value you chose for the Coverage and how you want to calculate contributions. Contributions can be flat amount premiums, amounts calculated by the application, or amounts determined by the employee.

The Benefits Administration application stores a benefit plan's contributions by date. Each plan can have multiple contribution's records. When you receive new contributions, you want to add the contributions using a new start date. This process provides an online audit trail of changes.

In each plan, you can define unique contributions for different groups of employees. For example, contributions for a plan could be $1,000 for employees in the Midwest and $2,000 for employees on the West Coast.

You can define the following types of contributions.

Contribution Types	Description
No contribution	For plans where no costs to the employee or the company is tracked.
Options amount	The cost for a coverage option is the same for all employees in a group. Valid only with a coverage type of Coverage Options.
Options amount range	The cost for a coverage option varies based on salary, age, or years of service ranges for employees in a group. Valid only with a coverage type of Coverage Options.
Flat contributions	The cost for the benefit is not related to coverage. You can vary contributions by salary, age, or years of service. Valid only with a coverage type of Coverage Amount or No Coverage.
Salary or coverage rate table	The cost for the benefit is based on the benefit's covered salary or coverage amount. You can vary contributions by salary, age, or years of service. Valid only with a coverage type of Coverage Amount.
Contribution limits	Employees specify contributions within defined limits. Valid only with a coverage type of No Coverage.
Match limit schedule	Employees specify contributions within defined limits that are matched by the company. Valid only with a coverage type of No Coverage.
Match percent schedule	Employees specify contributions that are matched by the company based on the percent of the employee's contribution. Valid only with a coverage type of No Coverage.
Custom calculations	A custom defined method of determining contributions.