Defining Benefits and Other Deductions

Every benefit plan is distinguished by a unique combination of plan type and plan name. Plan type is important because our system uses it to distinguish insurance plans, for example, health insurance plans from life insurance plans.

Plan types are assigned a numerical value and are divided into categories based upon those values. For example, all health-related plan types begin with a 1. Therefore, the system recognizes all plan types in the range of 10−19 as health plans. After that come the life insurance plans, with plan type values of 20−29, and so on.

For each delivered category, you can add types that include a letter value, as long as you begin with the correct series identification. For example, all health plan types must start with a 1, so you can add plan types with values from 1A to 1Z. A value of 2Z wouldn't work as a health plan type but could be used for a new life insurance plan type.

Because you add plan types starting from the beginning of the alphabet, it is recommended that you start with Z and work backward to A. If you use a plan type in the range of 10−19 and 1A−1Z, the system recognizes it as a health plan type.

The plan type series delivered by HR are as follows:

We recommend that you work within the delivered plan type series. If you add plan types that do not conform to the delivered series, update the associated processing logic.

The plan types delivered by HR are as follows:

The first step in defining a benefit plan is to name the plan and identify the plan type through the Benefit Plan table.

A benefit program is a set of benefits and deductions that is valid for an employee or group of employees. A single company may have any number of programs, and an employee with concurrent jobs may have multiple benefit programs. Therefore, when you set up a benefit program, you are defining which benefits and deductions are valid for the employees enrolled in the program.

To keep your benefit program accurate and consistent, the calculation rules and options must be individually effective-dated in a coherent, logical manner. If they aren't, your benefit program is open to a variety of errors as historical records get shuffled and benefits data lost. Plans associated with a benefit program cannot be in effect unless their effective dates are set on or after the effective date of the benefit program. Similarly, the rates and calculation rules that you associate with the plans cannot be in effect unless their effective dates are set on or after the dates of the plans to which they're linked. If a benefit program and benefit plan combination isn't effective when you think it should be, check the effective dates of the benefit program and the benefit plan. The effective date of the benefit plan must be less than or equal to the effective date of the benefit program.

Deductions comprise all payroll deductions for benefit plans and other general payments, not including taxes. There are two basic types of deductions: benefits deductions and general deductions. In Human Resources, a general deduction is a deduction (permanent or incidental) that isn't a benefit deduction. Charitable deductions, union dues, parking fees, garnishments, and bonds all fit into this category. Refer to deductions for taxes as taxes. When setting up deductions in Human Resources, remember that there are two parts to defining a deduction.

To define a deduction:

1. Use the Deduction Table page to specify, for all benefits deductions and general deductions, whether a deduction is permanent or incidental and how the deduction affects taxes.

2. Define the actual calculation of a deduction on the General Deduction Table page or on the Benefits tables, depending on the type of deduction that you specify.

   Use the General Deduction Table page for non-benefit deductions, such as parking fees, union dues, or garnishments. This page contains the codes that classify all payroll deductions that do not fit into a category covered by one of the Benefits tables, such as loan payments, cash, advance settlements, union dues, and parking fees.

   Use the Benefits tables for benefit deductions, such as those for medical and life insurance plans.

   For each entry on the General Deduction Table page or in the Benefits table, there should be a corresponding entry on the Deduction Table page.

The HRsystem provides two Structured Query Reports (SQRs) for reviewing the deduction codes that are entered into the system:

• The Deductions report (INT005NL) provides an overview of the different deductions defined in the system.

  This SQR is sorted by plan type, deduction code, and effective date. It prints the classification codes that you set up for each plan type on the Deduction Table page.

• The General Deduction/Frequency report (INT006NL) provides information about valid general deduction codes that you entered into the system.

  The report shows the calculation type code for each deduction and, where applicable, the flat rate or percentage, the employee pay frequency, and any additional flat deduction amounts.

Use the Deduction Table page (DEDUCT_TABLE1_NL) to specify, for all benefits deductions and general deductions, whether a deduction is permanent or incidental and how the deduction affects taxes.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Deduction Table

This example illustrates the fields and controls on the Deduction Table page. You can find definitions for the fields and controls later on this page.

Use the General Deduction Table page (GENL_DEDUCT_TBL_NL) to set up general deduction data and define how nonbenefit deductions are calculated.

These deductions include parking fees, union dues, or garnishments. (For benefit deductions, use one of the Benefits tables.)

Navigation:

Set Up HCM > Product Related > Benefits NLD > General Deduction Table

This example illustrates the fields and controls on the General Deduction Table page. You can find definitions for the fields and controls later on this page.

Use the Company General Deductions page (GDED_COM_TBL) to set up general deductions for your organization.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Company General Deductions

This example illustrates the fields and controls on the Company General Deductions page. You can find definitions for the fields and controls later on this page.

Use the Vendor Information page (VNDR_ID1) to define the benefit providers for your benefit plans.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Provider/Vendor Table > Vendor Information

Benefit providers are defined as vendors. The Provider/Vendor Table component (PROVIDER_TABLE) is described in the PeopleSoft HCM Application Fundamentals product documentation.

Use the Benefit Plan Table page (BENEFIT_PLAN_TABLE ) to set up a benefit plan definition.

Also define providers, provider codes, and default deduction codes for all plan types.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Benefit Plan Table

This example illustrates the fields and controls on the Benefit Plan Table page. You can find definitions for the fields and controls later on this page.

Use the Coverage Codes page (COVRG_CD_TBL) to create new coverage codes for your benefit programs.

We recommend that you give the coverage code a numerical values of one through seven. Coverage codes should be ordered according to their complexity, with Employee being first.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Coverage Codes > Coverage Codes

This example illustrates the fields and controls on the Coverage Codes page. You can find definitions for the fields and controls later on this page.

Use the Benefit Program page (BEN_PROG_DEFN1) to set up basic benefit program information.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Benefit Program Table > Benefit Program

This example illustrates the fields and controls on the Benefit Program page. You can find definitions for the fields and controls later on this page.

Use the Plan Type and Option page (BEN_PROG_DEFN2) to link plan types to the benefit program and add important information about plan types.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Benefit Program Table > Plan Type and Option

This example illustrates the fields and controls on the Plan Type and Option page. You can find definitions for the fields and controls later on this page.

Use the Cost page (BEN_PROG_DEFN3) to link a benefit program and plan type to rate and calculate rules.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Benefit Program Table > Cost

This example illustrates the fields and controls on the Cost page. You can find definitions for the fields and controls later on this page.

Use the Clone Benefit Program page (BN_CLONE) to use the benefit program clone utility to identify a benefit program and have the system make an exact copy of that program with a different effective date.

Give the duplicate program the same name as the original or rename it, which saves you time and effort when you create a new benefit program with a future effective date.

Navigation:

Set Up HCM > Product Related > Benefits NLD > Clone Benefit Program > Clone Benefit Program

This example illustrates the fields and controls on the Clone Benefit Program page. You can find definitions for the fields and controls later on this page.