Understanding Employee Flex Deductions

Each benefit group that offers flex plans must contain an employee flex deduction category and plan. The system uses the employee flex deduction to deduct a negative flex balance from an employee's pay.

You do not set up the employee flex deduction plan as a flex plan because it does not have a predetermined flex cost or credit. Instead, you set it up as a regular plan and assign it a pretax deduction DBA that requires you to enter a flat amount. The system calculates the flat amount by subtracting the flex costs of the plans that an employee selects from the employee's available credits. If the resulting amount is negative, that amount is deducted from the employee's pay on a pretax basis.

The employee flex deduction category and plan do not appear on self service forms because employees cannot change their enrollment in this plan. Also, you cannot change the amount of the employee flex deduction in the Enrollment With Eligibility program (P08334) because the system automatically updates the plan DBA with the employee's negative flex balance.