Recalculating benefit costs is typically done with a mid-year change if the carrier requires the coverage to be updated mid-year if a comp change occurs. This allows you to maintain an accurate history of the employee's coverage and sending accurate data to your carrier. 

Creating a New Compensation Rate

1. Search for the employee that you want to add a new compensation rate to.

   

2. Expand Payroll, and click Compensation from the menu. 

   

3. Click Create Compensation Rate Record from the Actions drop-down menu.

   

4. Create a new compensation rate. If there is an active compensation record while adding the new record, a stop/end date will be automatically added to the previous active pay rate one day earlier than the start date of the new record.  

   

   Click for more information about available fields.

   • Start Date - Indicates when this record is effective. 
     • If there are multiple records with no end date, the system will add an end date to the most current record. This will not occur if "Do not add end date to previous compensation record" has been enabled for the record.
   • Stop Date - Should not be filled in as this is a new compensation record.
   • Rate Code - If multiple rate codes are available, you can choose from the dropdown menu.
   • Employer Code - If multiple records exist, the employee’s employer will appear as the only option.
   • Notes - Optional Field
   • Salary or Hourly - Select one of the following radio Buttons
     • Salary
       • Per Pay Amount - The Per Pay Amount will be converted to an Annual Amount by referencing the Pay Schedule Year that correlates with the year of the Start Date entered above. If a Pay Schedule does not exist for the corresponding year, then the Annual Amount will be equal to the Per Pay Amount entered into this field.
       • Annual Hours Worked
         • The system will default to a Full Time (40 hours/week) calculation.
         • This field is used in the EEOC-1 Component 2 Reporting
       • Overtime Rate - Optional Field
       • Other Rate - Optional Field
       • Auto Pay - Determines if Standard Automatic Pay should apply. The system will default to No.
         • Used for reporting purposes only.
       • Auto Pay Hours - The number of hours applied to Standard Automatic Pay.
         • Used for reporting purposes only.
     • Hourly
       • Hourly Rate - Used to calculate the employee's annual rate divided by the annual hours worked
       • Annual Hours Worked - The estimated hours the employee will work in a year
   • Do not add end date to previous compensation record - This option should be enabled if you do not want to auto-add an end date to the previous active record when creating a new record. This option should be enabled if the employee should have multiple active rate codes.
5. Click Save Record. 
6. Click Cancel after successfully saving to return to the Pay Rates tab.

Recalculate Benefit Costs

1. While viewing the Employee profile, expand Benefits, and click Benefits from the menu.

   

2. Click into the Benefit Range of any compensation-based benefit (i.e. Voluntary Employee Life)

   

3. For "Step 1 - Select Coverage", select the new coverage level and any dependent changes, if any, with the provided radial buttons/checkboxes.

   

4. For "Step 2 - Set Dates", you can perform a variety of changes such as:
   1. Effective Dates of Coverage - Enable "This is a mid-year change" and specify the change date. This will change the end date of the previous coverage to one day before the specified change date and create a new record starting for the date range specified. Not setting this to a 'Mid-Year Change" could risk losing an accurate history and sending incorrect data to the carrier.

      

   2. Reason for change - Specify the reason for the mid-year change by clicking the "Selected" radial button and selecting the qualifying event from the drop-down menu. Enter the date that the qualifying event occurred in the "Event Date" field. This can be important for some third-party systems to properly log qualifying events.

      

   3. Override costs - If enabled, allows you to override the employee's current Benefit Coverage Amount, Benefit Cost, or both, to be different than what the standard configuration is in the system.
      • Fill in the "Annual Premium Amount" and the "Annual Employer Contribution" fields.
      • The "Annual Employee Cost" will auto-populate based on the 2 prior fields. You cannot manually adjust the Annual Employee Cost. In order to make adjustments, you will need to adjust either the "Annual Premium Amount" or the "Annual Employer Cost".
      • Fill in the "Annual PreTax Deduction" and " Annual PostTax Deduction" fields. Both fields need an amount, even if that amount is 0.
      • Fill in the "Annual Coverage Amount". This field needs an amount, even if that amount is 0.
      
5. Review and confirm your changes in "Step 3 - Confirm". This step will list what will occur after confirming the benefit change.