Understanding Table Method DBAs

You set up table method DBAs when the calculated amount of the DBA is based on information that varies from employee to employee. Table method DBAs can be simple or complex, depending on the required outcome of the DBA calculation. Table method DBAs are set up using calculation tables that contain the variable factors upon which the amount or rate of the DBA should calculate.

DBAs may use calculation tables if the amount or rate of the DBA should be based on variable factors such as salary, age, or length of service. For example, life insurance premium rates are typically dependent upon an employee's age and elected coverage amount. To accommodate this type of calculation, you would create a table method DBA.

When you create table method DBAs, you use a combination of calculation methods, table methods, and calculation tables.