Understanding Dependent/Beneficiary Record Creation

You create dependent records so that employees' dependents can participate in benefit plans, such as medical insurance. You create beneficiary records so that an employee's relative or friend will receive benefits from a plan, such as life insurance, in the event of the employee's death. A person can be both a dependent and a beneficiary of an employee.

After you create dependent and beneficiary records, you can link them to an eligible employee's record. Dependents are associated with specific benefit plans when their records are linked to the appropriate employee records.

(USA) If you are using Benefits Administration to administer the company's Consolidated Omnibus Budget Reconciliation Act (COBRA) and Health Insurance Portability and Accountability Act (HIPAA) programs, you must create dependent records for COBRA and HIPAA reporting to comply with government regulations.