Setting up Benefit Plans
This chapter focuses on procedures to set up your benefits plans. When defining benefits plan parameters, you are structuring the plan. Benefits plans use several different features in the Human Resources application.
Employee groups, defined in the Human Resources application, are used to identify eligibility, entry rules, coverage, contributions, and general ledger overrides.
Deduction codes, pay classes, and pay codes are used from the Payroll application:
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to track employee and company expenses
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to track hours for eligibility, vesting, compensation and dollars for contributions
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allocation of flex credits and computed income amounts that are added to employee's taxable wages
Note: Before you set up, you must define the employee groups
on Employee Group Definition (HR55) and Eligibility Postal Codes (BN11) postal codes. The
Benefits Administration application uses the information entered on
HR55 and BN11 as part of employee benefit eligibility.