This chapter contains these topics:
The JD Edwards World Human Resources Benefits Administration system enables you to provide and support benefits packages for your company or organization. With the Human Resources Benefits Administration system, you can enroll employees in the benefit plans your company offers. You can end enrollment whenever employment changes or your company changes benefit plans. You can also add new benefit plans, change the cost of current plans, and remove old plans from the system.
The Benefits Administration system assists you in notifying employees, former employees, and their qualified beneficiaries when they become eligible to enroll in coverage provided under the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA requires employers who sponsor group health plans to offer employees and their dependents continuation of coverage at group rates that the employee would otherwise have forfeited from a qualifying event. For example, employees who have terminated from the company are entitled to COBRA coverage. Their qualified beneficiaries are also entitled to this coverage. Additionally, the system helps you handle claims and benefits for COBRA participants.
With the Benefits Administration system, you enter dependents and beneficiaries to make them eligible to receive benefits or to be designated as a qualified beneficiary for COBRA.
Flexible spending accounts are another major feature of benefits administration. Flexible spending accounts allow employees to use pre-tax dollars to cover certain expenses. These expenses include dependent care and non-reimbursed medical care. Employees can choose to have their employers deduct pre-tax dollars from their paychecks and place the money into one or more flexible spending accounts. After employees incur an expense and make a claim against the corresponding flexible spending account, they are reimbursed.
A deferred contribution plan, such as a 401(k), helps employees save for retirement. With this type of plan, employees can set aside monies on a pre-tax basis. This type of plan is subject to special government regulations, known as nondiscrimination tests. These tests ensure that highly paid employees do not take substantially greater advantage of this tax savings than lower-paid employees. The Benefits Administration system provides tests that are designed specifically calculate the nondiscrimination tests.
This section contains the following:
System Integration
Features
Terms and Concepts
Tables and Descriptions
The Benefits Administration system is one module of the JD Edwards World Human Resources system. The Benefits Administration system fully integrates with other JD Edwards World systems, especially the JD Edwards World Payroll system. This integration reduces costs by reducing redundant data entry and making employee and benefit information instantly available.
The Benefits Administration system provides you with the tools to manage your company's benefit plans and flexible spending accounts with online integration to other human resource information and payroll processing. With the Benefits Administration system, you can respond to employees' requests for information about their benefits.
You can also:
Administer any number of plans with varying amount or rate options
Separate the employer's and employee's portions of the costs of the plans and options
Administer both pre-tax and post-tax benefits
Maintain and track employee, dependent, and beneficiary information
Track non-cash benefits, such as use of a company car or health club dues
Determine benefit eligibility based on system or user defined criteria
Generate payroll deductions
Access payroll history
For flexible spending accounts, you can:
Access account balance summaries
Display detailed claim information
Print reimbursement checks with the JD Edwards World Payroll system
Review a single claim, whether paid with one check, multiple checks, or automatic deposit
Produce account statements
Generate integrity reports to reconcile detail and summary balance information
Set up accounts by dollar allotment or by non-dollar monetary point allotments
Automatically generate payroll deductions and benefits
Track employee contributions and employer matches
Manage allocations
View histories online
Establish key employee test criteria
Determine highly compensated employees
Assist your compliance officer with built-in average contribution percentage (ACP), average deferral percentage (ADP), and 415 nondiscrimination tests
Profile data is an additional feature of the Benefits Administration system. With profile data you can store and retrieve user defined information tailored to your needs. For example, you can store and retrieve information on dependents and beneficiaries or insurance claims.
The following terms and concepts are used to administer your benefit program:
The Benefits Administration system contains the following tables: