Benefits Settings

• BL for Bereavement Leave
• .
• VC for Vacation.
• FC for Food Coupons.

1. Go to Maintenance. Select System Settings, and click on Benefits Settings.
2. Select Benefits Code from drop down menu.
3. The system will take user to the Benefits Settings Maintenance page, where the following fields will appear:
4. • Company Code: It will appear grayed out.
   • Benefits Code: The selected code will appear.
   • Enabled: This checkbox will activate or deactivate the calculation of this benefit. In addition, user must select which process will perform this benefit calculation. Use drop down menu to select from:
     • Benefits Process
     • Payroll Calculation
     • Termination Proces
     • Other Custom Process (available upon user request).
   • Termination Process: When the benefits calculation is made by any process other than Termination, the user has the option of having this checkbox active to perform the same benefit calculation which will only be applied to a single employee and at the moment of terminating him.
   • Payroll Type: It refers to the kind of payroll which will keep the transactions generated by this calculation. Select Normal or Special from drop down menu.
5. Complete the Employee Selection Settings section. This section contains the guidelines for considering which employees are eleigible to receive this benefit.
6. • Status: User must mark on one or more of the following checkboxes: Active, Terminated, LOA (Leave of Absence) or Stand by.
   • Last Hire Date: This checkbox allows user to filter employees depending their lenght of service. Use the criteria options in the adjacent option menus to filter eligible employees (see Reference 1). This setting does not work when the benefit calculation is made by "Termination Process".
   • Termination Date: When this checkbox is active all terminated employees are included in the benefit calculation. Use the cirteria options in adjacent option menus to filter eligible employees (see Reference 1). This setting does not work when the benefit calculation is made by "Termination Process".
   • Incidences: It allows user to set a minimum or maximum of incidences in employee attendance record to consider employee eligible for this benefit. Use the cirteria options in adjacent option menus to filter eligible employees (see Reference 1).
   • Termination Reasons: This allows user to filter those terminated employees who are eligible to receive benefit. User must select reasons from drop down menu.
   • 
     
     

     Reference 1
     Current Period Start Date	It is the first day of company current pay period.
     Last Period Start Date	It is the final day of company current pay period.
     Current Date	It refers to today's date.  When the process is run, the system will consider the server current date at that time.
     Current Month Start Date	It is the first day of current pay period month.
     Last Month Start Date	It is the first day of the previous month from the current pay period.
     Current Year Start Date	It is the first day of the current pay period year.
     Last Year Start Date	It is the first day of last year from current pay period year.
     No Start Date	It means that Start Date will not be considered. Therefore, if an End Date is set, that will mean that any date lower or equal as End Date will apply.
     Current Period End Date	It is the final day of the company current pay period.
     Last Period End Date	It is the final day of the previous closed pay period in the company.
     Current Month End Date	It is the final day of the current pay period month.
     Last Month End Date	It is the final day of previous month from current pay period.
     Current Year End Date	It is the final day of the current pay period year.
     Last Year End Date	It is the final day in the previous year from current pay period.
     No End Date	It means that End Date will not be considered. Therefore, if a Start Date is set, it will mean that any date equal or greater than start date will apply.

7. Complete the Base Amount Calculation Settings section. This contains the parameters which will determine the base for the benefit calculation (usually some type of salary or pay rate). For example, if the benefit consists in 'vacation hours', then the user will have to consider the employee hourly pay rate as the base for this calculation.
8. • Levels (First, Second, Third, and Fourth). They allow user to set a different base calculation for a certain group of employees who share one particular characteristic. Available options include:
   • • Pay Types - Allows user to set a different calculation base for every employee Pay Type (Hourly, Salary, etc.).
     • Categories - Allows user to set a different calculation base for every employee Category (Manager, Supervisor, etc.)
     • Direct - Allows user to set a different calculation base for Direct and Indirect employees.
     • Category Codes - Allows user to set a different calculation base using some dynamic category (Category Types / Category Codes).
     • 
       The calculation base can be set by combining up to four different levles. For example: It is possible to set a calculation base for every Pay Type in the First Level (PIECE RATE, HOURLY, SALARY), and then divide some other payment using the option Direct / Indirect. This way, there will be two different calculations for every employee Pay Type instead of one.
       
     • Base Amount - It is the table which contains all different calculation bases. One calculation is setup for every option included in 'Level items list'.
   
   
9. Complete the Custom Settings fields:
10. • Payroll Code - It is the code which will identify the benefit payment in company payroll.
    • Formula - It is displayed for user information purposes only (Wage * Factor) / (Divisor).
    • • Wage - It allows to set a specific employee income to include it in benefit calculation base. User must select it from drop down menu:
      • • Custom Value - Set a specific amount.
        • Salary Amount - It is the employee salary for every pay period. Only SALARY employees are eligible for this.
        • Daily Wage - It is the amount resulted from this operation: Salary / (365 / Annualization Factor). Only SALARY employee records have this value.
        • PLD Rate - It is the employee rate for rest days.
        • Hourly Rate - It is the employee hourly rate. SALARY employee records do not have this value.
        • Benefits Base - It is the total of all payroll transactions considered for benefit base calculation. The option 'Pay Periods' is used to determine the lapse of time which will be considered.
        • Mapping Payroll - It is the total of all payroll transactions included in selected mapping code. Only applied transactions are considered. The option 'Pay Periods' is used to determine the lapse of time which will be considered.
        • Net Pay - This amount is the result from substracting the total employee deductions from the total employee earnings every pay period. Only applied transactions are considered. The option 'Pay Periods' is used to determine the lapse of time which will be considered.
        • Net Pay 1 - This amount is the total of employee earnings which are considered in the benefit calculation base. The option 'Pay Periods' is used to determine the lapse of time which will be considered.
      • Factor - It is the figure that must be multiplied by the Wage in the benefit calculation. User must consider the following guidelines when selecting any of these parameters:
        • Custom Value - Set a specific amount.
        • Custom Days - Set a specific number of days.
        • All Days - It refers to the total days resulted from the period of time which had been set in this section "Pay Periods".
        • Worked Days - It refers to the Pay Period days, exept for those "incidences" days. Value is stored by single employee and by pay period. This option is available for closed pay periods only. Use the "Pay Periods" option to set the lapse of time to be considered.
        • Attendance Days - It refers to the regular workdays, excluding holidays and rest days. Value is stored by single employee and by pay period. This option is available for closed pay periods only. Use the "Pay Periods" option to set the lapse of time to be considered.
        • All Days excluding ? days per Week - It refers to the total regular workdays, excluding a specific number of days a week. Use the "Pay Periods" option to set the lapse of time to be considered.
        • Hours per Week - It is the total employee weekly hours worked. Value is stored by single employee and it is stored in the Employee Maintenance Payroll section.
        • Hours per Day - It is the total hours in the employee regular workday. Value is stored by single employee and it is stored in the Employee Maintenance Payroll section.
        • Timecard Hours - It is the actual total of weekly worked hours reflected in employee FEPS timesheet. Value is stored by single employee and it is stored in the Employee Maintenance Payroll section.
        • Paid Months - This applies for companies where Pay Frequency is Bi-Monthly, or Monthly. This figure is calculated by single employee, and it is obtained by adding up the pay periods where the total earnings is equal or greater than the number of minimum wage specified in this field, and every pay period is given a certain value:
        • • 0.5 when pay frequency is bi-monthly (24 pay periods a year multiplied by 0.5 = 12 months)
          • 1 when pay frequency is monthly (12 pay periods a year multiplied by 1 = 12 months) Use the "Pay Periods" option to set the lapse of time to be considered.
        • Divisor - The result obtained from multiplying Wage * Factor is divided by the value obtained in this field. The parameters available for this calculations are the same as those described under the field Factor.
        • Pay Periods - User must set the number of pay periods which will be considered for the calculation of the Wage, Factor and Divisor as long as the selected parameters require this field.
        • Base Limits - If this checkbox is active, the system will allow user to set a minimum and a maximum amount to be considered, based on the result from the base calculation. Use the fields "Enable from" and "To". User may leave checkbox inactive so any resulting amount can be considered as valid.
11. Complete the Payment Settings section. This section contains the parameters for defining the actual benefit payment. In addition, the system also offers the user the option to caculate benefit accrual if necessary.
12. • Manage Payment - This feature allows user to keep track of the benefit payments and it validates if it has been paid completely. For example: A given employee can have 120 vacation hours a year, but may take more than one vacation period during the year. In this case, the system will generate one vacation payment per employee leave. The system will keep track of all calculations performed to obtain each vacation payment amount, and will also validate that all 120 hours are paid for.
    • Enable Accrual - This checkbox will become visible once the user has activated "Manage Payment". This feature allow user to calculate benefit accruals. Once user activates this checkbox, the following fields will become visible:
    • • Accrual Cycle - User must use drop down meny to select the start and end of the accrual calculation. Every available option refers to an annual cycle:
      • • Year - Calculation starts on the first day of January and ends on the last day of December.
        • Anniversary - Calculation starts on the employee anniversary date, and ends the following year on the day before the employee aniversary date.
        • Custom Year - It allows user to set a preferred calculation cycle by selecting the starting month from the provided drop dowm menu. Once the starting month is selected, the system will set the ending month automatically. For example, if user selects From - September, then system will set To - August.
      • Accrual Method - User must select the way in which the accrual will be calculated.
      • • Incidence Hours Delivery - This method should only be selected when the calculation involves monitoring employee use of some kind of incidence, like vacation hours. In this case, for example, this calculation will take the employee vacation hours, and then will obtain the corresponding vacation pay using the Base Amount configured in this module.
        • Prorated Day by Day - This method calculates the total amount for the whole year, and that figure is prorated for 365 days.
      • Frequency - It refers to how often the system will caculate accrual. User may select one of two options: Monthly (twice a month) or Semimonthly (every month).
      • Expense Code - It is the payroll code which will be used to identify the benefit.
      • Provision Code - It is the payroll code which will be used to identify the benefit accrual.
      • Accrue Before Cycle - Click on this checkbox to start calculating benefit accrual one year before actual benefit pay cycle.

Related Topics

Benefits Process