Understanding Calculation Rules

The calculation rules specify how to group jobs when calculating deductions based on an employee's salary. The following fields determine deduction or coverage amounts for salary-based plans:

• Combine Salaries check box on the Calculation Rules Table.

• Grouping Method on the Calculation Rules Table.

• Deductions check box on the Primary Jobs Table.

The primary job indicator controls the frequency of benefit deductions. Nonearnings-based benefit deductions (for example, rate-based deductions) are taken only when the primary job for the enrollment's benefit record is part of the payroll calculation. Benefit deductions that are based upon actual employee earnings, such as savings, retirement, or pension plans, are taken according to how those plans are set up, or in some cases, according to the contribution method—either percentage of earnings or a flat amount—that the employee selects upon enrollment.

• If the contribution is based on a percentage, the deduction is taken on every check that the employee receives for all jobs for the benefit record associated with the enrollment.

• If the contribution is based on a flat amount, the deduction is taken only when the primary job for the enrollment benefit record is paid.

Summary of Calculating Deductions by Plan Type

Here's how these fields are used to calculate coverage and deductions for each plan type series:

Plan Type	Basis/Type	Usage
Health (1x)	Flat amount or compensation rate based	To calculate the premium if a Salary Rate Table is specified, salaries are combined using the Include flag for each job along with the combination parameters on the Calculation Rule Table.
Life/AD&D (2x)	Flat amount or compensation rate based	If the coverage is based upon a factor of salary, salaries are combined using the Include flag for each job along with the combination parameters on the Calculation Rule Table. If a Salary Rate table is specified, salaries are combined using the Include Flag along with the combination parameters on the calculation rule to calculate the premium.
Disability (3x)	Flat amount or compensation rate based	To determine coverage, salaries are combined using the Include flag for each job along with the combination parameters on the Calculation Rule Table. To calculate the premium if a Salary Rate table is specified, salaries are combined using the Include flag for each job along with the combination parameters on the Calculation Rule Table.
Savings (4x)	Flat amount or earnings-based	The combination parameters on the Calculation Rules Table, as well as the Include for Deductions flag, are ignored: all jobs within the benefit record contribute earnings to the deduction and limits. Savings plans contributions can be expressed as either a flat amount or a percentage of eligible earnings (controlled by special accumulators). Contributions expressed as a percentage of eligible earnings are calculated based upon the earnings from all jobs in the enrollment's benefit record number in the current check, without regard to the setting of the Include flag for each job. Limits are determined using year-to-date deductions across all benefit record numbers.
Leave (5x)	NA	Not applicable. No coverage amount or deduction exists with these plans.
FSA (6x)	Flat amount	Not applicable. No coverage amount exists, and deductions are not based upon salary or earnings.
Retirement (7x)	Earnings-based	The combination parameters on the Calculation Rules Table, as well as the Include for Deductions flag, are ignored: all jobs within the benefit record contribute earnings to the deduction. Contributions are expressed as a percentage of eligible earnings (controlled by a special accumulator), and are calculated based upon the earnings from all jobs in the enrollment's benefit record number, in the current check. Limits (if any) are determined using year-to-date deductions across all benefit record numbers.
Pension (8x)	Earnings-based	The combination parameters on the Calculation Rules Table, as well as the Include for Deductions flag, are ignored: all jobs within the benefit record contribute earnings to the deduction. Contributions expressed as a percentage of eligible earnings are calculated based upon the earnings from all jobs in the enrollment's benefit record number, in the current check. Limits (if any) are determined using year-to-date deductions across all benefit record numbers.
Vacation Buy/Sell (9x)	CompRate-based	Calculation rules are not used for these plans, and the Include flag is ignored. The cost is calculated by adding compensation rates across all active jobs in the enrollment's benefit record number.