Understanding DBA Information for Flexible Benefits

You might want to set up the DBAs that you can use in flexible benefits before you complete the other setup steps. You complete DBA setup information in the PDBA (pay type, deduction, benefit, accrual) Setup program (P059116). This table illustrates the DBA setup that is typically required for flex benefits:

DBA	Description
Employee flex deduction	The employee flex deduction is the total cost to the employee for all the selected flexible benefit plans. When an employee elects a flexible benefit plan, the amount in the employee flex deduction is updated with the cost of the selected plan. When you set up the employee flex deduction DBA, be sure to include: Deduction DBA type. Flat-dollar-amount method of calculation. Blank value in the Amount/Rate 1 field.
Employer flex credits	Use the employer flex credits DBA to provide employees with a lump sum amount to purchase flexible benefits. Flexible benefit costs that exceed the lump sum credit typically results in an employee payroll deduction using the employee flex deduction DBA. When you set up the employer flex credit DBA, be sure to include: Benefit or accrual DBA type. Flat-dollar-amount method of calculation. Amount/Rate 1 field that is equal to the amount of employer-provided credits. Calculation during pre-payroll.
Employee flex cost	The employee flex cost DBA is the amount that an employee must spend to select a particular benefit plan. You must set up an employee flex cost DBA for each flex benefit plan for which there is an associated employee cost. When you set up the employee flex cost DBA, be sure to include: Benefit DBA type. Flat-dollar-amount method of calculation. Amount/Rate 1 field that is equal to the cost to the employee for the benefit. Calculation during pre-payroll.
Employer-paid benefit	The employer-paid benefit DBA is the cost (or portion of the cost) that is incurred by the company to provide a particular benefit plan. Some companies provide employer-paid benefits in addition to or instead of employer flex credits. This DBA can be used for flex or non-flex plans. The setup is the same for both. The employer-paid benefit does not appear on any interactive enrollment forms. It is simply the company cost that is recorded in the general ledger, and it does not affect the enrollment process. The employer-paid benefit DBA is set up as a benefit type or accrual DBA type.