Understanding the Delivered Benefit Deduction Processing Flow

This topic discusses the process for calculating benefit deductions, including:

  • The general framework.

  • Benefit deduction initialization.

  • Health plan processing.

  • Savings plan processing.

  • Life insurance processing.

  • Delivered benefit deduction elements.

  • Delivered benefit arrays.

  • Scheduling deductions using generation control.

PeopleSoft Global Payroll for United States is designed to integrate with the Manage Base Benefits business process of PeopleSoft HR and PeopleSoft Benefits Administration to calculate benefit deductions. We have provided a number of benefit deductions—medical, dental, basic life, supplemental life, spouse life, and 401k—that meet common processing requirements.

Benefit deductions are processed according to the section definition called STD DED PRC NPV. Within the STD DED PRC NPV definition, benefit deductions are grouped according to plan type. In addition, the placement of the plan types is based on whether the deduction is taken before or after federal and state taxes. Medical, dental, and savings plan deductions are defined as before-tax deductions. Basic life, supplemental life, and spouse life are defined as after-tax deductions.

Note: Federal employee taxes, state employee taxes, repayments, general deductions, and garnishments are not part of benefit deductions and are not discussed in this topic.

The benefit deduction initialization process, BEN DED INIT, is designed to process the arrays BEN AR PRIMARY JOB and BEN AR BEN PROG.

The BEN AR PRIMARY JOB loads the Primary Job and Include Deductions fields from the Primary Jobs Flags page located in PeopleSoft HR into variables.

BEN AR BEN PROG loads the Benefit Program field from the Ben.Prog.Partic page in PeopleSoft HR into a variable.

When processing health plans, the system is designed to process:

  1. An eligibility check.

  2. Medical deductions.

  3. Dental deductions.

Eligibility Check

To perform the eligibility check, the system:

  1. Processes BEN FM BASIC ELIG.

    BEN FM BASIC ELIG looks at the Primary Job and Include Deductions check boxes. If the check boxes are not selected, then zero is assigned to the formula BEN FM BASIC ELIG and to the variable BEN VR BASIC ELIG.

  2. If BEN FM BASIC ELIG equals one, the system processes the section HEALTH INIT.

    HEALTH INIT calls the array BEN AR HLTH PLANS. BEN AR HLTH PLANS uses the formula BEN FM HLTH PLANS to retrieve the employee's health benefit enrollment information for plan types 10 and 11 from the Health Benefit Election page in PeopleSoft HR.

Medical Deductions

To calculate medical deductions, the system:

  1. Performs another eligibility check using the formula BEN FM MED ELIG.

    If retroactive adjustments exist, and if the employee's plan type 10 election coverage is not blank, then one is assigned to the formula BEN FM MED ELIG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM MED ELIG.

    If the employee's plan type 10 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM MED ELIG.

    If the Primary Job check box for this employee is selected, then one is assigned to the formula BEN FM MED ELIG.

  2. If BEN FM MED ELIG equals one, the system processes the section MEDICAL DED. MEDICAL DED uses:

    1. The formula BEN FM PLN TYP 10 to set plan type 10-specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The arrays BEN AR RATE TBL and BEN AR RATE DAT2 to retrieve benefit rate data from the BN_RATE_TBL and BN_RATE_DATA tables respectively.

    4. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    5. The deduction MEDICAL EE to calculate the employee's portion of the deduction. MEDICAL EE uses the formula BEN FM MED EE COST.

    6. The deduction MEDICAL ER to calculate the employer's portion of the deduction. MEDICAL ER uses the formula BEN FM MED ER COST.

Dental Deductions

To calculate dental deductions, the system:

  1. Performs another eligibility check using the formula BEN FM DEN ELIG.

    If retroactive adjustments exist, and if the employee's plan type 11 election coverage is not blank, then one is assigned to the formula BEN FM DEN ELIG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM DEN ELIG.

    If the employee's plan type 11 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM DEN ELIG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM DEN ELIG.

  2. If BEN FM DEN ELIG equals one, the system processes the section DENTAL DED. DENTAL DED uses:

    1. The formula BEN FM PLN TYP 11 to set plan type 11-specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The arrays BEN AR RATE TBL and BEN AR RATE DAT2 to retrieve benefit rate data from the BN_RATE_TBL and BN_RATE_DATA tables respectively.

    4. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    5. The deduction DENTAL EE to calculate the employee's portion of the deduction. DENTAL EE uses the formula BEN FM DED EE COST.

    6. The deduction DENTAL ER to calculate the employer's portion of the deduction. DENTAL ER uses the formula BEN FM DEN ER COST.

When processing savings plans, the system is designed to process:

  1. An eligibility check.

  2. 401k deductions.

Eligibility Check

To perform the eligibility check, the system:

  1. Processes BEN FM BASIC ELIG.

    This is the same eligibility check performed by the health plan process.

  2. If BEN FM BASIC ELIG equals one, the system will process the section SAVINGS INIT.

    SAVINGS INIT calls the array BEN AR SAV PLANS. BEN AR SAV PLANS uses the formula BEN FM SAV PLANS to retrieve the employee's savings plan enrollment information for plan type 40 from the Savings Plan Election page in PeopleSoft HR. SAVINGS INIT also calls the date element GP SEG END DT EXTR to extract the year, month, and day based on the segment end date.

401k Deductions

To calculate savings plan deductions, the system:

  1. Performs another eligibility check using the formula BEN FM SAV ELIG.

    If retroactive adjustments exist, and if the employee's plan type 40 election coverage is not blank, then one is assigned to the formula BEN FM SAV ELIG.

    If the employee's plan type 40 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM SAV ELIG.

    If the Primary Job and Include Deduction check boxes are selected, then one is assigned to the formula BEN FM SAV ELIG.

    If the Primary Job check box is selected, but the Include Deduction check box is not selected, and the Flat Amount field in the Before Tax Investment group box on the Saving Plan Elections page has a value greater than zero, then one is assigned to the formula BEN FM SAV ELIG.

    If the Primary Job check box is not selected, but the Include Deductions check box is selected, and the Percent of Earnings field in the Before Tax Investment group box on the Saving Plan Elections page has a value greater than zero, one is assigned to the formula BEN FM SAV ELIG.

  2. If BEN FM SAV ELIG equals one, the system processes the section 401K DED. 401K DED uses:

    1. The formula BEN FM PLN TYP 40 to set plan type 40-specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The array BEN AR SAV MGMT retrieves the 402G Ext Amt field from the Savings Mgt page in PeopleSoft HR.

    4. The array BEN AR SAV PLN PRM to retrieve the Before-Tax field in the Up-To-Limit group box on the Savings Plan Table - Employee Limit on Investments page in PeopleSoft HR.

    5. The array BEN AR LIMIT to retrieve limit information from the Limit Table page in PeopleSoft HR.

    6. The deduction 401K EE to calculate the employee's savings deduction.

      401K EE uses the formula BEN FM 401K EE. The 401K EE deduction uses the following accumulators:

      Accumulator

      Description

      401K GROSS N

      Segment accumulator that accumulates earnings that need to be considered in the 401k deduction calculation. This is a Not Maintained accumulator and is defined as As Contributinġ.

      401K GROSS YTD N

      YTD accumulator that accumulates YTD earnings that need to be considered in the 401k deduction calculation. The 401K GROSS N accumulator is a member of this accumulator. This is a Not Maintained accumulator and is defined as As Contributing.

      401K PRE CTB N

      Segment accumulator that accumulates the employee's 401k pre-tax contributions. The 401K EE deduction is a member of this accumulator. This is a Not Maintained accumulator and is defined as As Contributing.

      401K PRE CTB YTD N

      YTD accumulator that accumulates the employee's YTD 401k pre-tax contributions. The 401K PRE CTB N accumulator is a member of this accumulator. This is a Not Maintained accumulator and is defined as As Contributing.

      415C AMT

      Segment accumulator that accumulates the employee's 401k contributions that are subject to the 415c limits. The 401K PRE CTB N accumulator is a member of this accumulator. This accumulator is defined as As Contributing.

      415C AMT YTD

      YTD accumulator that accumulates the employee's 401k YTD contributions that are subject to the 415c limits. The 415C AMT accumulator is a member of this accumulator. This accumulator is defined as As Contributing.

When processing life insurance plans, the system is designed to process:

  1. An eligibility check.

  2. Basic life deductions.

  3. Supplemental life deductions.

  4. Spousal life deductions.

Eligibility Check

To perform the eligibility check, the system:

  1. Processes BEN FM BASIC ELIG.

    This is the same eligibility check performed by the health plan process.

  2. If BEN FM BASIC ELIG equals one, the system will process the section LIFE INIT.

    LIFE INIT calls the array BEN AR LIFE PLANS. BEN AR LIFE PLANS uses the formula BEN FM LIFE PLANS to retrieve the employee's life insurance enrollment information for plan types 20, 21, and 25 from the Life/ADD Elections page in PeopleSoft HR.

Basic Life Deductions

To calculate life insurance deductions, the system:

  1. Performs another eligibility check using the formula BEN FM BAS LIF ELG.

    If retroactive adjustments exist, and if the employee's plan type 20 election coverage is not blank, then one is assigned to the formula BEN FM BAS LIF ELG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM BAS LIF ELG.

    If the employee's plan type 20 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM LIF ELIG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM BAS LIF ELG.

  2. If the formula BEN FM BAS LIF ELG equals one, the system will process the section BAS LIF DED. BAS LIF DED uses:

    1. The formula BEN FM PLN TYP 20 to set plan type 20 specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The arrays BEN AR RATE TBL and BEN AR RATE DAT2 to retrieve benefit rate data from the BN_RATE_TBL and BN_RATE_DATA tables respectively.

    4. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    5. The array BEN AR LIFE PARM to retrieve the group coverage code from the Life/Accidental page in PeopleSoft HR.

    6. The array BEN AR DEP COV ELG to retrieve covered person type data from the BN_DEP_COV_ELG_LIF table.

    7. The array BEN AR BN FORMULA to retrieve benefit formula data from the BN_FORMULA table.

    8. The array BEN AR BN FORM DEF to retrieve benefit formula definition data from the BN_FORM_DEF table.

    9. The array BEN AR COV GRP to retrieve the maximum coverage for the group coverage code from the Coverage Group Tbl page in PeopleSoft HR.

    10. The formula BEN FM CVGRPCD DAT to check that the employee does not exceed the maximum amount allowed for all life insurance plans.

    11. The formula BEN FM BAS COV AMT to calculate the basic life coverage amount taking into consideration the limits that may apply.

    12. The deduction BASIC LIF EE to calculate the actual basic life insurance deduction.

      BASIC LIF EE uses the formula BEN FM BAS EE COST.

Supplemental Life Deductions

To calculate supplement life deductions, the system:

  1. Performs another eligibility check using the formula BEN FM SUP LIF ELG.

    If retroactive adjustments exist, and if the employee's plan type 21 election coverage is not blank, then one is assigned to the formula BEN FM SUP LIF ELG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM SUP LIF ELG.

    If the employee's plan type 21 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM BAS LIF ELG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM SUP LIF ELG.

  2. If the formula BEN FM BAS LIF ELG equals one, the system will process the section SUP LIFE DED. SUP LIFE DED uses:

    1. The formula BEN FM PLN TYP 21 to set plan type 21 specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The arrays BEN AR RATE TBL and BEN AR RATE DAT2 to retrieve benefit rate data from the BN_RATE_TBL and BN_RATE_DATA tables respectively.

    4. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    5. The array BEN AR LIFE PARM to retrieve the group coverage code from the Life/Accidental page in PeopleSoft HR.

    6. The array BEN AR BN FORMULA to retrieve benefit formula data from the BN_FORMULA table.

    7. The array BEN AR BN FORM DEF to retrieve benefit formula definition data from the BN_FORM_DEF table.

    8. The array BEN AR COV GRP to retrieve the maximum coverage for the group coverage code from the Coverage Group Tbl page in PeopleSoft HR.

    9. The formula BEN FM CVGRPCD DAT to check that the employee does not exceed the maximum amount allowed for all life insurance plans.

    10. The formula BEN FM SUP COV AMT to calculate the supplemental life insurance coverage amount taking into consideration the limits that may apply.

    11. The deduction SUPL LIF EE to calculate the actual basic life insurance deduction.

      SUPL LIF EE uses the formula BEN FM SUP EE COST.

Spousal Life Deductions

To calculate spousal life insurance plan deductions, the system:

  1. Performs another eligibility check using the formula BEN FM SPS LIF ELG.

    If retroactive adjustments exist, and if the employee's plan type 25 election coverage is not blank, then one is assigned to the formula BEN FM SPS LIF ELG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM SPS LIF ELG.

    If the employee's plan type 25 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM SPS LIF ELG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM SPS LIF ELG.

  2. If the formula BEN FM SPS LIF ELG equals one, the system will process the section SPOUSE LIFE DED. SPOUSE LIFE DED uses:

    1. The formula BEN FM PLN TYP 25 to set plan type 25 specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    4. The array BEN AR DEP BIRTH to retrieve the spouse's birth date from the Update Dependent/Beneficiary - Name and Personal Profile pages in PeopleSoft HR.

    5. The date GP PRD END DT EXTR to extract the current year based on the period-end-date.

    6. The formula BEN FM SPOUSE AGE to calculate the spouse's age.

    7. The formula BEN FM RT SMKR ST to determine rates based on smoker status.

    8. The array BEN AR LIFE PARM to retrieve the group coverage code from the Life/Accidental page in PeopleSoft HR.

    9. The array BEN AR BN FORMULA to retrieve benefit formula data from the BN_FORMULA table.

    10. The array BEN AR BN FORM DEF to retrieve benefit formula definition data from the BN_FORM_DEF table.

    11. The array BEN AR COV GRP to retrieve the maximum coverage for the group coverage code from the Coverage Group Tbl page in PeopleSoft HR.

    12. The formula BEN FM CVGRPCD DAT to check that the employee does not exceed the maximum amount allowed for all life insurance plans.

    13. The formula BEN FM SPS COV AMT to calculate the supplemental life insurance coverage amount taking into consideration the limits that may apply.

    14. The deduction SPSE LIF EE to calculate the actual spousal life insurance deduction.

      SPSE LIF EE uses the formula BEN FM SPS EE COST.

The following table lists the delivered benefit deduction elements:

Element Name

Description

Amount

Accumulator

401K EE

Employee deduction amount for 401k plans.

BEN FM 401K EE

Auto-generated MTD and YTD amounts.

401K GROSS N

401K GROSS YTD N

401K PRE CTB N

401K PRE CTB YTD N

415C AMT

415C AMT YTD

BASIC LIF EE

Employee cost of basic life insurance.

BEN FM BAS EE COST

Auto-generated MTD and YTD amounts.

DENTAL EE

Employee portion of dental deduction.

BEN FM DEN EE COST

Auto-generated MTD and YTD amounts.

DENTAL ER

Employer portion of dental deduction.

BEN FM DEN ER COST

Auto-generated MTD and YTD amounts.

MEDICAL EE

Employee portion of medical deduction.

BEN FM MED EE COST

Auto-generated MTD and YTD amounts.

MEDICAL ER

Employer portion of medical deduction.

BEN FM MED ER COST

Auto-generated MTD and YTD amounts.

SPSE LIF EE

Employee cost for spouse life insurance.

BEN FM SPS EE COST

Auto-generated MTD and YTD amounts.

SUPL LIF EE

Employee cost of supplemental life insurance

BEN FM SUP EE COST

Auto-generated MTD and YTD amounts.

This table lists the delivered benefit arrays:

Array Name

Description

BEN AR BEN PRG DEF

Retrieves plan data from the benefit's BEN DEFN_OPTN and BEN_DEFN_COST tables.

BEN AR BEN PROG

Retrieves the benefit program in which the employee is enrolled from the benefit's BEN_PROG_PARTIC table.

BEN AR BN FORM DEF

Retrieves benefit formula definition data from the BN_FORM_DEF table.

BEN AR BN FORMULA

Retrieves benefit formula data from the BN_FORMULA table.

BEN AR CALC RULE

Retrieves the calculation rule data from the benefit's CALC_RULES_TBL table.

BEN AR COV GRP

Retrieves the coverage group's maximum amount from the benefit's COVG_GROUP_TBL table.

BEN AR DEP BIRTH

Retrieves the employee's dependent birth date information from the benefit's DEP_BEN table.

BEN AR DEP SEX SMK

Retrieves the employee's dependent gender and smoker status information from the benefit's DEP_BEN_EFF table.

BEN AR HLTH PLANS

Retrieves the employee's medical plan data from the benefit's HEALTH_BENEFIT table.

BEN AR LIFE PARM

Retrieves life insurance parameters from the benefit's LIFE_ADD_TBL table.

BEN AR LIFE PLANS

Retrieves the employee's life insurance data from the benefit's LIF_ADD_BENEF table.

BEN AR LIMIT

Retrieves limit data from the benefit's LIMIT_TBL table.

BEN AR PRIMARY JOB

Retrieves the employee's primary job data from the benefit's PRIMARY_JOB table.

BEN AR RATE DATA

Retrieves benefit rate data from the BN RATE DATA table using three keys.

BEN AR RATE DAT2

Retrieves benefit rate data from the BN RATE DATA table using two keys.

BEN AR RATE TBL

Retrieves benefit rate data from the BN_RATE_TBL table.

BEN AR SAV MGMT

Retrieves the employee's 402G extension amount from the benefit's SAVINGS_MGT_EE table.

BEN AR SAV PLANS

Retrieves the employee's savings plan enrollments from the benefit's SAVINGS_PLAN table.

BEN AR SAV PLN PRM

Retrieves the 401k pretax percentage limit from the benefit's SAVINGS_PLN TBL table.

BEN AR SPS LIF DEP

Retrieves spouse's ID from the benefit's LIF_ADD_BENEF table.

Generation control elements enable you to define when a deduction element is processed according to defined criteria.

This table shows the generation control elements associated with the benefit deductions:

Element Name

Generation Control

MEDICAL EE

GEN GC WEEK 1AND2

MEDICAL ER

GEN GC WEEK 1AND2

DENTAL EE

GEN GC WEEK 1AND2

DENTAL ER

GEN GC WEEK 1AND2

BASIC LIF EE

GEN GC WEEK 3AND4

SUPL LIF EE

GEN GC WEEK 3AND4

SPSE LIF EE

GEN GC WEEK 3AND4

401K EE

BEN GC 401K DED

You can override or assign a different generation control frequency to an individual payee using the Element Assignment by Payee component.

Note: PeopleSoft Global Payroll for United States delivers a query that you can run to view the names of all delivered elements designed for the U.S. Instructions for running the query are provided in the PeopleSoft Global Payroll product documentation.