Defining Salary or Coverage Rate Table

This procedure enables you to have the application calculate flat annual contributions based on the participant's annual salary or coverage amount. You can vary contributions by age, salary, or years-of-service. Any amounts used in this procedure use the currency associated with the plan you defined on Benefit Plan (BN15.1).

Note: If the plan does not have unique contributions for specific employee groups, you only need to define this form 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 choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).

To define salary or coverage rate table

  1. Access Benefit Plan (BN15.1).
  2. Select the Company, Benefit Type and Plan for which you want to define salary or coverage rate table.
  3. Select Inquire function.
  4. Click the Contrib button. The Company, Benefit type, and Plan are already filled in when Salary or Coverage Rate Table (BN18.4) opens.
  5. Select the plan participants for the contribution record from the Coverage Type field.
  6. Type 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 choose to leave the group field blank, the application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).

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

    Note: If you define contributions by employee group, make sure employee groups are defined such that an employee can be a member of 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 the situation as an error.
  8. Define the contribution attributes for this contribution using the following guidelines:
    Contribution Tax Type

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

    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 choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want 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.

  9. Define calculation attributes for this contribution using the following guidelines:
    Rate Table

    Select the age, salary or years of service rate table you want to use to calculate contributions. For COBRA participant or retiree contributions, select an age rate table.

    Note: The rate table you select must have a start date equal to the start date of this contribution record.
    Coverage or Salary

    Select whether contributions are calculated using covered salary or the coverage amount defined for the benefit.

    Note: COBRA participant and retiree contributions must be based on coverage.
    Cost Per

    If contributions are calculated based on increments of salary or coverage, type the increment used to determine the contribution. (For example, contributions are $1.00 for each $1,000 of coverage.)

    Leave this field blank if the contribution is a flat annual amount or a flat percent.

  10. Click the Criteria button. The Salary Age Service (BN18.8) form opens. Define how you want the application to determine an employee's salary, age, and years of service. Fill in the appropriate fields for the rate table you selected on the Salary or Coverage Rate Table (BN18.4).
  11. Click OK. The application returns you to the Salary or Coverage Rate Table (BN18.4).
  12. Select the Add function

Related Reports and Inquiries

To Use
List benefit plan information Plan Parameter Listing (BN215)
Related topics