Benefits Rate Frequencies

Specify the rate communicated to participants during enrollment by configuring frequency settings in basic details of the program or plan not in program. Configure the standard rate with the payroll deduction amount. Use the Plan Configuration work area tasks.

Your configuration determines whether the communicated amount in the self-service enrollment pages and Enrollment work area is the same as the payroll amount.

Program or Plan Frequency Settings That Affect Rates

Select a value for each of the following frequencies when you configure the basic details for a program or plan not in program.

Defined Rate Frequency: Time basis specified for the activity rate calculation.

Possible selections are Annually, Biweekly, Monthly, Hourly, Quarterly, Semiannually, Semimonthly, or Weekly.

Communicated Rate Frequency: Time basis used to calculate the rate displayed on the self-service enrollment pages and in enrollment results in the Enrollment work area.

Possible selections are Estimated per pay period, Per month, Per pay period, Per pay period with element frequency rules, or Per year.

The following table defines the pay period values.

Frequency Value	Description
Per pay period	Use the number of pay end dates derived from the payroll definition. Example: A weekly payroll might result in 53 end dates in the calendar year.
Estimated per pay period	Use the standard number of periods corresponding to the period type value selected in the payroll definition, regardless of the number of pay end dates in the calendar year. Example: Communicated rate calculations use the fixed number of 52 weekly periods, even for years with the nonstandard 53 weekly periods.
Per pay period with element frequency rules	Use the frequency rules of the payroll element associated with the standard rate to determine the number of deductions in the calendar year. Example: One of your benefit deductions occurs only on the first biweekly payroll in each month. If you use this communicated rate frequency, select Per-pay-period amount as the value passed to payroll.

Frequency Value

Description

Per pay period

Use the number of pay end dates derived from the payroll definition.

Example: A weekly payroll might result in 53 end dates in the calendar year.

Estimated per pay period

Use the standard number of periods corresponding to the period type value selected in the payroll definition, regardless of the number of pay end dates in the calendar year.

Example: Communicated rate calculations use the fixed number of 52 weekly periods, even for years with the nonstandard 53 weekly periods.

Per pay period with element frequency rules

Use the frequency rules of the payroll element associated with the standard rate to determine the number of deductions in the calendar year.

Example: One of your benefit deductions occurs only on the first biweekly payroll in each month.

If you use this communicated rate frequency, select Per-pay-period amount as the value passed to payroll.

If you select one of the pay period choices, you must define a corresponding payroll and assign it to the relevant participants. Use the tasks in the Basic Payroll functional area in the Setup and Maintenance work area.

Standard Rate Frequency Settings That Affect Rates

Select a value for each of the following optional attributes when you configure rate details and payroll information for the standard rate.

Optional Rate Attributes	Description
Element Input Value	Used to transfer the benefit rate to payroll through the element entry. Before you can select an element input value, you must first select a payroll element for the standard rate.
Value Passed to Payroll	Amount that the application passes to the element entry. Possible selections are Annual amount, Communicated amount, Defined amount, Estimated per-pay-period amount, or Per-pay-period amount. Leave this field blank if you do not use element entries. For communicated amount and payroll deduction amounts to be the same, you must coordinate the settings for the communicated rate frequency and the value passed to payroll.
Rate Periodization Formula	You can change the annual, defined, and communicated rate calculations for any activity rate. To do so: Create a fast formula using the Rate Periodization formula type. Select the formula on the Processing Information tab of the standard rate.

Optional Rate Attributes

Description

Element Input Value

Used to transfer the benefit rate to payroll through the element entry.

Before you can select an element input value, you must first select a payroll element for the standard rate.

Value Passed to Payroll

Amount that the application passes to the element entry.

Possible selections are Annual amount, Communicated amount, Defined amount, Estimated per-pay-period amount, or Per-pay-period amount. Leave this field blank if you do not use element entries.

For communicated amount and payroll deduction amounts to be the same, you must coordinate the settings for the communicated rate frequency and the value passed to payroll.

Rate Periodization Formula

You can change the annual, defined, and communicated rate calculations for any activity rate. To do so:

Create a fast formula using the Rate Periodization formula type.
Select the formula on the Processing Information tab of the standard rate.

How Communicated Rate is Calculated

The following table identifies the possible communicated rate values, the calculation used to determine the amount, an example amount, and the example calculation.

The examples represent a family medical plan and use the following values:

Standard rate: 4,000 USD
Defined rate frequency: Quarterly
Payroll period type: Biweekly
Element frequency rules for this deduction: First pay period in the month only

Communicated Rate Frequency	Calculation Used to Derive Communicated Amount	Example Communicated Amount (USD)	Example Calculation Expression
Per year	Standard rate x Number of times defined rate frequency occurs in 1 year	16,000	4,000 x 4
Per month	Annual amount / Number of times communicated rate frequency occurs in 1 year	1,333.3333	16,000 / 12
Per pay period	Annual amount / Actual number of pay periods in 1 year based on payroll frequency Actual number example: Depending on the year, 52 or 53 for weekly and 26 or 27 for biweekly	One of these two amounts, depending on the year: 615.3846 592.5926	Annual amount / 26 pay periods Annual amount / 27 pay periods
Estimated per-pay-period	Annual amount / Standard number of pay periods in 1 year based on payroll frequency Standard number examples: 52 for weekly, 26 for biweekly, and 24 for semimonthly	615.3846	16,000 / 26
Per-pay-period with element frequency rules	Annual amount / Number of times deduction is taken in 1 year	1,333.3333	16,000 / 12

How Value Passed to Payroll is Calculated

The following table identifies the possible values to pass to payroll, the calculation used to determine the amount, an example amount, and the example calculation.

The examples represent a family medical plan and use the following values:

Standard rate: 4,000 USD
Defined rate frequency: Quarterly
Communicated rate frequency: Per month
Payroll: period:
- Period type: Biweekly
- Alternative for illustration purposes: Element frequency rule of first pay period in a month.
- Reminder: Different years have a different number of biweekly payrolls.

Value Passed to Payroll	Calculation Used to Derive Amount	Example Value Passed to Payroll Amount (USD)	Example Calculation Expression
Left blank	None	Not applicable	Not applicable
Defined amount	Standard rate at the specified defined rate frequency	4,000 (per quarter)	None
Annual amount	Standard rate x Number of times defined rate frequency occurs in 1 year	16,000	4,000 x 4
Communicated amount	Annual amount / Number of times communicated rate frequency occurs in 1 year	1,333.3333	16,000 / 12
Estimated per-pay-period amount	Annual amount / Standard number of pay periods in 1 year based on payroll frequency Standard number examples: 52 for weekly, 26 for biweekly, and 24 for semimonthly	615.3846	16,000 / 26
Per-pay-period amount	Annual amount / Actual number of pay periods in 1 year based on payroll frequency Actual number example: Depending on the year, 52 or 53 for weekly and 26 or 27 for biweekly If using element frequency rules: Annual amount / Number of times deduction is taken in 1 year	One of these two amounts, depending on the year: 615.3846 592.5926 If element has frequency rule of first pay period per month: 1,333.3333	1,600 / 26 pay periods 1.600 / 27 pay periods 16,000 / 12

The communicated rate frequency is not coordinated with the value passed to payroll in the preceding examples, which focus on the calculation of each amount.