Use the Employee Benefit Plans section of Admin Tools to set up a correlation between a) an employer contribution to an employee benefit and b) an associated employee deduction from payroll. For example, you might configure Employee Benefit Plans for an employer-matched 401K plan, or for a health plan that includes an employer contribution and a portion paid by the employee. The steps that follow describe how to add or edit a benefit/deduction pair.
Prior to setting up a benefit/deduction pair, make sure the benefit transaction type (e.g., 401k) is set up. Visit the Admin Tools: Transaction Types page for details.
Once the benefit/deduction pair is established, any user assigning a benefit in the Employee Payroll section will see a warning message with a reminder that the matching deduction must be set up. In other words, if an employer contribution of a defined pair is created, the system will display an indication that the deduction part of the pair must also be set up. Warnings will also appear when processing payroll if both the contribution and deduction are not assigned for the pair.
- In Admin Tools, select the System category and then double-click the Employee Benefit Plans option in the list on the right.
- On the Plan Types tab of the Employee Benefit Plans window, review the currently defined plan types. The plan type is just a way to categorize the plans your company may offer.
- If the plan types you are going to work with already exist, skip to step 6 below.
- If a plan type doesn't exist for the benefit you are working with, create one by clicking Add New. This clears the text fields to accept a new type.
- In the Plan Type field, enter a descriptive name for the plan type.
- Click Save.
- Click the Benefit Plans tab. Any paired benefit/deduction plans will appear in the grid in the upper portion of the window.
- Edit an existing plan by modifying the fields in the lower portion as necessary. For descriptions of these fields, see the related information in the steps below.
- To add a new benefit/deduction pair, click Add New. The fields below will be cleared for entry (if they were not already clear).
- In the Plan Name field, enter a short name for the plan (required).
- In the Description field, enter additional text to describe the plan (required).
- In the Plan Type drop-down, select the plan. This is a list of the plans that are defined on the Plan Types tab as described above (required).
- From the Contribution Transaction Type drop-down list, select the transaction type to which this benefit relates (required).
- From the Deduction Transaction Type drop-down list, select the transaction type to which this benefit relates (required).
- The Processing Method defaults to a standard processing method. Leave this value as it is, unless you have a different custom processing method that is valid for this use (required).
- Click Save when finished.