Defining flex credits

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. See Setting up Benefit Plans or Setting up benefit plan contributions.

Before you can define flex credits, you must define the full flex plan. See Defining Full Flex Plans.

  1. Access Flex Credits (BN08.1).
  2. Select the Company.
  3. Select the Flex plan in the Flex Plan field. This is the same flex plan that you defined on Flex Plan (BN06.1).
  4. Specify the start date for the flex credit with the format of day, month, and year. The month and day must be the same as the flex plan's start date in Flex Plan (BN06.1).
  5. Fill out the Flex Credits parameters. You can give flex credits as both a base amount and percent of salary. Use these guidelines to specify the field values:
    Base Amount

    If the plan gives a base amount of flex credits to employees in a group, then specify the amount that you want to give as credit. Also select the employee group name in the Employee Group field.

    Leave this field blank if you specified 100 in the Base Percent of Salary field.

    Base Percent of Salary

    If the plan gives a base percent of salary of flex credits to employees in a group, then specify the percent of an employee's salary that you want to give as credit. Also, select the employee group name in the Employee Group field.

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

    If you specified a value here, then you must define the flex salary parameters. See Defining Flex Salary Parameters.

    Unspent Taxable Credits

    Specify the percent of unspent flex credits that employees can add to their gross pay as taxable income.

    Note: If you leave this field blank, then employees lose all unspent flex credits.
    Minimum Total Credits

    This field is optional and you can leave it blank.

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

    Maximum Total Credits

    This field is optional and you can leave it blank.

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

    Note: Specify pre-tax amount large enough to cover at least two times the maximum amount any employee could spend on benefits. If the employee has spent all his or her dollars and had a benefit change, then the application assumes the credits have been spent.
  6. Complete the Pretax Credits parameters. Use these guidelines to specify the field values:
    Amount

    Specify the maximum amount an employee can spend from their regular pretax earnings to purchase benefits.

    If there is no limit, then leave this field blank.

    Percent of Salary

    Specify the maximum percent of regular pre-tax earnings an employee might spend to purchase benefits.

    If employees can spend a percent of their salary on a pretax basis to purchase benefits, then specify that percent.

    If there is no limit, then specify 100.

  7. Select the Add form function.
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