Creating Benefit Codes is a simple process. You begin with two options: Create Benefit Code or Add Benefit Plans.
Use the first option, Create Benefit Code, to make an individual code. Add Benefit Plans allows you to create multiple codes for a single plan (example: Vision codes for different levels of coverage, Employee, Employee + Family, etc). Both follow the same process.
Select Create Benefit Code. This will open a panel for New Code: Choose Template. If you have an existing template, you can use that, or you can Continue without choosing one.
Code Details
Here enter the code name, how it will display on employee paystubs, and a description. Then select the applicable Benefit Category.
If this is a Catch-Up Code, you would also indicate that here.
Select Next.
Note: Some items will have a blue ?; when you position your mouse over the ?, you'll get additional information. These are written out here for your convenience.
Catch Up Code: This code will be created as a "Catch Up Code". These codes should only be assigned and used for employees that meet catch-up contribution requirements.
Employer Contribution Details
Here you will make a number of choices regarding your benefit, such as the Rate and Tax Type, how much the employer contribution is, and the benefit frequency. Select the options that fit the benefit you are creating.
- Split Evenly on All Pay Runs: Calculate the code's total annual rate and divide it evenly across all scheduled pay runs in a year.
- Even Amount per Month: Split the code's rate between the first 2 pay runs in a month for biweekly pay runs and the first 4 pay runs in a month for weekly pay runs.
- Full Amount on first Scheduled Pay Run of the Month: The total monthly rate for each assigned employee will be applied to the first scheduled pay run of the month only.
- Imputed Income: Imputed income is a benefit amount value attributed toward an employee's taxable income, but not necessarily a true cash value disbursement in-hand.
Maximum & Arrears
If needed, you can set a maximum for this code. The maximum prevents the code from exceeding the specified value. Maximums can be set by year, quarter, month, or pay period. A benefit that would require a maximum would be any 401K codes. If a code does not require a maximum this field may be left blank.
Indicate whether or not this benefit code should calculate and track arrears.
Arrears: If you have assigned a benefit to the employee that is issued a $0.00 paycheck, for example, because they are on unpaid leave, then the unissued benefit for that pay period will be tracked in arrears as if the company still owes this benefit to the employee.
Allow Arrears: If there are not enough wages available to take this deduction, then the amount will be put in arrears. The amount that is attempted to be repaid in future pay runs will be determined by the below setting. Note: When deduction arrears are applied to a pay run, it will not ensure that minimum wage is met for the employee that is repaying an arrear.
W-2 Reporting
If this benefit has any W-2 Box 12 code or should have a Box 14 Label, set them here. This will be important with respect to W-2 activities at the end of the year.
Effective Dates
Determine when this benefit code should be effective. Some benefit codes may not have end dates.
These can be scheduled on the individual employee-level, too, after the code is created and assigned.
Assign Code Now
This is the end of the Benefit Code creation wizard. If you want to assign the code to employees, select Yes; otherwise, choose No.
Manage Employees
If you decide to assign the code now, select the employees you want to assign the code to and verify the Employer Contribution is accurate. Select Save Assigned Employees to confirm.