Setting Up Health Insurance

For benefits rate IDs used for health benefit plans, do the following:

  • Add coverage codes 22 and 24 to the benefit rates table.

  • Specify Other Rates for these coverage codes. Use the Other Rates page to specify tax adjustment amounts that are different for the before-tax spouse portion and the employer-contributed spouse portion of a benefit plan. Enter different tax adjustment rates for Other Rate IDs.

Taxable Gross Component ID (TGCID) originates from Taxable Gross Definition and is a pointer to where the Gross Adjustment is calculated from. TGCID is set at Deduction Table per Deduction Class. A new TGCID ‘SSP’ is delivered to be associated with the Other Rates taxable gross adjustments for same-sex spouse rate. The current TGCID ‘SSS’ set up in the Taxable Gross Definition table remains the same without Other Rate ID and Deduction Class associated with it; tax adjustment still originates from the corresponding main Detail Rates per Deduction Class in the Benefits Rate table and not from the Other Rates table. Thus for a State or Locality, it is possible to have both TGCIDs ‘SSS’ and ‘SSP’, but a user would normally associate only one TGCID - either ‘SSS’ or ‘SSP’ per Deduction Class in the Deduction Table, to get the corresponding tax adjustment rate from one source, i.e., either from the main Benefit Rate table or Other Rates table, respectively.

Tax Adjustments defined in the Tax Adjustment tab of the Benefit Rate table is normally used as an extra tax adjustment bucket that is different from the Detail Rate. If the Tax Adjustment currently contains the same-sex tax adjustment, the user has to zero it out if new Other Rate will be used to define this adjustment.

In summary, the keys Deduction Class, Other Rate ID and TGCID link Benefit Rates/Other Rates, Deduction Table and Taxable Gross Definition to come up with Tax Gross Adjustment Rate. Consider whether to define other taxable gross adjustment either using the main Tax Adjustment or Other Rates to avoid duplicating rates defined in both.

For more information, refer to the document Taxation for U.S. Same-Sex Spouse Benefits in PeopleSoft Payroll for North America in My Oracle Support.