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Contents

Lesson 1

Course Overview ............................................................................................................................................. 1Agenda ............................................................................................................................................................... 2

Lesson 2

Business Process Overview ............................................................................................................................. 5

Describing How PeopleSoft Enterprise Human Resources Base Benefits Fits Into PeopleSoft HRMS .......... 6

Describing the Phases of the Benefits Process .................................................................................................. 8

Describing the Relationship Between Benefit Tables and Employee Data .................................................... 18

Describing the Base Benefits Components ..................................................................................................... 19

Describing Sources of Information About PeopleSoft Enterprise Human Resources Base Benefits inPeopleBooks .................................................................................................................................................... 26

Lesson 3

Setting Up Payroll Deductions ..................................................................................................................... 31

Setting Up Payroll Deduction Codes for Benefit Plans .................................................................................. 32

Determining Deduction Classifications ........................................................................................................... 37

Specifying Deduction Tax Effects .................................................................................................................. 44

Determining Settings for Specific Processing ................................................................................................. 47

Specifying the Frequency of Benefit Deductions ............................................................................................ 49Activity 1: Setting Up Payroll Deductions ...................................................................................................... 51

Lesson 4

Setting Up Benefit Plans, Health Plans, and Benefit Programs ................................................................ 67

Identifying Health Plan Components .............................................................................................................. 68

Adding a Plan Provider ................................................................................................................................... 69

Setting Up a Benefit Plan and a Health Plan ................................................................................................... 73

Defining Coverage Codes ............................................................................................................................... 77

Setting Up Benefit Rate Types ........................................................................................................................ 80

Establishing Rates for a Benefit Plan .............................................................................................................. 83

Activity 2: Defining Health Plans ................................................................................................................... 85

Adding a Health Plan to a Benefit Program .................................................................................................. 102

Adding a Health Plan to a Benefit Program (continued) ............................................................................... 106

Activity 3: Creating a Benefit Program ......................................................................................................... 108

iii



Lesson 5

Setting Up Life Insurance Plans ................................................................................................................. 117

Identifying Life Insurance Plan Components ................................................................................................ 118

Defining a Life Insurance Plan ...................................................................................................................... 119

Defining Coverage Rates ............................................................................................................................... 127

Defining Calculation Rules ........................................................................................................................... 130Adding a Life Insurance Plan to a Benefit Program ..................................................................................... 135

Activity 4: Setting Up Life Insurance Plans .................................................................................................. 138

Lesson 6

Setting Up Disability Plans ......................................................................................................................... 145

Identifying Disability Plan Components ....................................................................................................... 146

Setting Up a Formula .................................................................................................................................... 147

Creating a Disability Plan .............................................................................................................................. 150

Establishing Coverage Rates Based on Length of Service ............................................................................ 152

Adding a Disability Plan to a Benefit Program ............................................................................................. 154

Activity 5: Setting Up Disability Plans ......................................................................................................... 156

Lesson 7

(USA) Setting Up Savings Plans ................................................................................................................. 163

Identifying Savings Plan Components .......................................................................................................... 164

Defining a Savings Plan ................................................................................................................................ 166

Setting Up the Service Step Table ................................................................................................................. 174

Setting Up Savings Plan Limits ..................................................................................................................... 179

Setting Up Age 50 Catch-up Contributions .................................................................................................. 184

Adding a Savings Plan to a Benefit Program ................................................................................................ 187

Activity 6: (USA) Setting Up a Savings Plan ............................................................................................... 190

Lesson 8

(CAN) Setting Up Pension Plans ................................................................................................................ 199

Identifying Pension Plan Components .......................................................................................................... 200

Setting Up Pension Plans .............................................................................................................................. 201Adding a Pension Plan to a Benefit Program ................................................................................................ 204

Activity 7: (CAN) Setting Up an Executive Pension Plan ............................................................................ 206

Lesson 9

Setting Up Leave Plans ............................................................................................................................... 211

Identifying Leave Plan Components ............................................................................................................. 212

Defining a Leave Plan ................................................................................................................................... 213

Contents

iv



Establishing Earning Codes for Leave Categories ........................................................................................ 218

Adding a Leave Plan to a Benefit Program ................................................................................................... 220

Activity 8: Setting Up a Vacation Leave Plan .............................................................................................. 222

Lesson 10

Setting Up Flexible Spending Accounts ..................................................................................................... 229

Identifying the Components of Flexible Spending Account Plans .............................................................. 230Creating and Defining FSA Plans ................................................................................................................. 231

Creating and Defining FSA Plans (continued) .............................................................................................. 234

Adding FSA Plans to a Benefit Program ....................................................................................................... 235

Activity 9: Setting Up Flexible Spending Accounts ..................................................................................... 237

Lesson 11

Adding New Employees, Dependents, and Beneficiaries ......................................................................... 243

Identifying the Pages Used to Hire an Employee .......................................................................................... 244

Viewing Job-Related Information for an Employee ..................................................................................... 245

Setting Up Dependent and Beneficiary Data ................................................................................................ 247

Activity 10: Adding Dependent and Beneficiary Data ................................................................................. 255

Lesson 12

Enrolling Employees ................................................................................................................................... 265

Assigning Employees to Benefit Programs ................................................................................................... 266

Activity 11: Assigning Employees to Benefit Programs ............................................................................... 268

Enrolling Employees in Benefit Plans ........................................................................................................... 269

Viewing Employee Benefit Enrollments ....................................................................................................... 288

Activity 12: Enrolling Employees ................................................................................................................. 292

Overriding Deduction Information ................................................................................................................ 301

Lesson 13

Calculating Deductions ............................................................................................................................... 303

Setting Up Tables Used to Calculate Deductions ......................................................................................... 304

Activity 13: Assigning Pay Calendars ........................................................................................................... 313

Activity 14: Creating and Linking the Pay Run ID ....................................................................................... 316Calculating Deductions ................................................................................................................................. 319

Activity 15: Calculating Deductions in PeopleSoft Payroll Interface ........................................................... 321

Viewing Calculated Deductions Online ........................................................................................................ 323

Activity 16: Viewing Calculated Deductions Online .................................................................................... 325

Confirming Deduction Amounts ................................................................................................................... 330

Contents

v



Lesson 14

Processing Leave Accruals ......................................................................................................................... 333

Processing Leave Accruals ............................................................................................................................ 334

Viewing Employee Leave Accrual Balances Online .................................................................................... 336

Activity 17: Running the Leave Accrual Process ......................................................................................... 338

Lesson 15

Changing Benefit Programs and Employee Enrollments ........................................................................ 343

Running the Benefit Program Report ............................................................................................................ 344

Activity 18: Running the Benefit Program Report ........................................................................................ 345

Creating a New Benefit Program Using the Benefit Program Clone Utility ................................................ 347

Activity 19: Cloning a Benefit Program ........................................................................................................ 349

Changing Employee Enrollments in Benefit Plans ....................................................................................... 355

Activity 20: Updating Employee Benefit Records ........................................................................................ 356

Lesson 16

(USA) Managing HIPAA Regulations ....................................................................................................... 363

Designating a HIPPA Plan ............................................................................................................................ 364

Processing HIPAA Certificates ..................................................................................................................... 365

Activity 21: Generating a HIPAA Certificate ............................................................................................... 367

Lesson 17

Using eBenefits Self Service Functionality with Base Benefits ................................................................ 371

Explaining Self-Service Benefits Functionality ............................................................................................ 372

Setting Up eBenefits ...................................................................................................................................... 374

Describing Security Considerations For eBenefits ....................................................................................... 387

Activity 22: Viewing Benefits Summary Using Self-Service ....................................................................... 388

Lesson 18

Using Multiple Jobs Within Benefits ......................................................................................................... 391

Describing Multiple Jobs ............................................................................................................................... 392Grouping Jobs with Benefit Record Numbers .............................................................................................. 394

Identifying Primary Jobs ............................................................................................................................... 396

Calculating Benefits Deductions for Multiple Jobs ...................................................................................... 399

Activity 23: Implementing Multiple Jobs ..................................................................................................... 404

Contents

vi



Lesson 1

Course Overview

Objectives

By the end of this course, you will be able to:

• Describe the PeopleSoft Human Resources Base Benefits business process.

• Set up payroll deductions for benefit plans.

• Define and manage benefit plans and programs.

• Enroll employees, dependents, and beneficiaries in benefit plans.

• Calculate benefit deduction amounts.

• Use eBenefits self-service functionality.

• Use multiple jobs within Benefits.

Slide 3

1



Agenda (continued)

Day One (continued)

On day one, we will discuss these topics:

• Setting up disability plans.

• (USA) Setting up savings plans.

• (CAN) Setting up pension plans.

• Setting up leave plans.

• Setting up flexible spending accounts.

Slide 5

Lesson 1 Course Overview

3



Agenda (continued)

Day Two

On day two, we will discuss these topics:

• Adding new employees, dependents, and beneficiaries.

• Enrolling employees.

• Calculating deductions.

• Processing leave accruals.

• Managing changes to plans, programs, and employee enrollments.

• (USA) Managing HIPAA regulations.

• Using eBenefits self-service functionality with Base Benefits.

• Using multiple jobs within benefits.

Slide 6

Course Overview Lesson 1

4



Lesson 2

Business Process Overview

Objectives

By the end of this lesson, you will be able to:

• Describe how PeopleSoft Enterprise Human Resources Base Benefits fits into PeopleSoft HRMS.

• Describe the phases of the benefits process.

• Describe the relationship between benefit tables and employee data.

• Describe the PeopleSoft Enterprise Human Resources Base Benefits components.

• List sources of information about PeopleSoft Enterprise Human Resources Base Benefits in PeopleBooks.

Slide 8

5



Describing How PeopleSoft Enterprise Human Resources BaseBenefits Fits Into PeopleSoft HRMS (continued)

The Difference Between Base Benefits and Benefits Administration

This table lists the differences between Base Benefits and Benefits Administration:

Base Benefits Benefits Administration

• Manual. The benefits administrator must do thethinking and determine who is eligible for what andhow to process the information. The eligibility isexternal.

• Delivered with PeopleSoft Human Resources.

• Automated. You set up the rules in PeopleSoft so thesystem does the thinking. The eligibility is internal.

• Purchased as a separate product.

Slide 10

Lesson 2 Business Process Overview

7



Describing the Phases of the Benefits Process

Benefits Process Phases

The benefits process has four phases:

1. Set up benefit plans and supporting tables.

2. Include benefit plans in one or more benefit programs.

3. Assign employees to benefit programs and enroll them into benefit plans.

4. Calculate benefit-related deductions.

Slide 11

Business Process Overview Lesson 2

8



Student Notes

Defining the Benefits Process Phases

This table lists the tasks performed in each of the benefits process phases:

Phase Tasks

Set up benefit plans and supporting tables.• Set up benefit plans and providers.

• Define available coverage.

• Establish rates, calculation rules, coverage formulas,and payroll deductions.

Include benefit plans in benefit programs. Include benefit plans in one or more benefit programs. A benefit program is a collection of benefit plans that yourcompany offers to a group of employees.

Assign employees to benefit programs and enroll theminto benefit plans.

• Determine the benefit program in which an employeecan participate.

• Enroll employee in selected benefit elections.

• Designate dependents or beneficiaries.

Calculate benefit related deductions• If your company uses Payroll for North America, the

payroll process automatically calculates deductions.

• If you use another payroll system, you can run a

stand-alone deduction calculation process to produce aninterface file using PeopleSoft Enterprise PayrollInterface.


9



Describing the Phases of the Benefits Process (continued)

Phase One: Setting Up Benefit Plans and Supporting Tables

This diagram shows the benefit plan and supporting tables that you set up in phase one:

Slide 12


10



Benefit Supporting Tables

Benefit Supporting Table Description

Plan Type Plan types are:

• Two-character, alphanumeric codes.

• Stored in the Translate Table.

Deduction table In this table, you define:

• Payroll processing rules.

• Deduction frequencies.

• Special rules regarding deduction priority, taxation,arrears processing, year-to-date limits, and generalledger account numbers.

Provider/Vendor table In this table, you define:

• Effective dates.

• Carrier information and contacts.

• Group numbers.

Benefit Plan table In this table, you define:

• Effective dates

• Plan description

• Plan providers

• Default deduction codes

Plan Attribute tables In the plan attribute tables, you define additional processing information about a specific benefit plan.

The plan attribute tables are a continuation of the BenefitPlan Table.

Rate tables In these tables, you define:

• Coverage costs.

• Who pays for a plan-the employer, the employee, orboth.


12



Benefit Supporting Table Description

Coverage Formula tables In these tables, you define:

• Simple formulas to calculate coverage for both life anddisability insurance plans.

• How the benefits compensation base is determined, aformula to apply against that base to derive a coverage

amount, and limits on the coverage amount.

• If the coverage is subject to reduction based on attainedage.

Calculation Rules table In this table, you define:

• As of dates for age, service, and compensation to beused to determine rates.

• Which salary field to use: Annual Rate or Benefit BaseRate.

(USA) Limit table In this table, you define rules for 401(a), 402(g), 403(b),415, and 457 plans.


13




Phase Two: Including Benefit Plans in Benefit Programs

Two important concepts in Base Benefits are the benefit program and the benefit plan:

Benefit Program Benefit Plan

• A collection of benefit plans.

• Differs by groups of employees (union, nonunion,executives, and so on).

• A specific benefit offering within a plan type, such asbasic dental, or enhanced dental.

• Defined through multiple components such as ratetables and calculation rules.

• Offered in benefit programs.

Slide 13


14



Student Notes

Definition of a Benefit Program

A benefit program is a collection of benefit plans that your company offers to a group of employees. Forexample, your company might set up one benefit program for hourly employees and another for salaried

employees.

Example: Benefit Plans in Benefit Programs

This table illustrates how various benefit plans can be combined into different benefit programs:

Benefit Plan Hourly Benefit Program Salary Benefit Program

Medical 200 USD deductible, 80 percentreimbursement.

200 USD deductible, 80 percentreimbursement.

Dental No deductible, 50 percent or 60 percentreimbursement.

No deductible, 50 percent or 60 percentreimbursement.

Life 6 months' pay. 1 year's salary.

Short-term disability 67 percent for 6 months. 100 percent for 52 weeks.

Long-term disability 50 percent. 60 percent.

Vacation 1 week, increasing to 6 after 30 years. 3 weeks, increasing to 6 after 30 years.

Savings Maximum pretax 7 percent of salary. Company matches 50 percent (up to 5 percent of salary).


15




Phase Three: Assigning Employees to a Program and Enrolling in Plans

This diagram shows an employee's assignment to a benefit program and the employee's plan enrollments inthe program:

Slide 14

Student Notes

Assigning Employees to Programs and Enrolling Plans

Each benefit program can have multiple plans of each plan type. After employees are assigned to a benefit program, they can select any combination of the plans within the program.


16



Describing the Base Benefits Components

The Relationship Between Scroll Areas and Tables

This diagram illustrates the multiple scroll areas found on pages used in benefits processing:

Slide 17


19



Student Notes

Scroll Areas

Most pages used in benefits processing have multiple scroll areas. Each scroll area represents a different, butrelated, database table. A group box surrounds the fields that a scroll area controls.

Scroll areas enable you to:

• Insert and delete rows of data in a table.

• View multiple rows of data in a table or view one row at a time.

Multiple scroll areas enable you to maintain multiple records for related tables.

Because pages are structured to access more than one table, insert and delete buttons appear inside scrollareas to ensure that you modify rows in the proper table.

Key StructureThe key structure determines how you maintain your tables in terms of inserting, deleting, or changing rowsof data. For example, if you insert a row of data into the second table, key fields are transferred from the firsttable. If you insert a row of data into the third table, key fields are transferred from the first and second tables.

Note. Some pages are structured to allow access to more than one table. To ensure that you are modifyingrows within the proper table, make sure to use the insert and delete buttons within the corresponding scrollarea.


20



Describing the Base Benefits Components (continued)

Payroll Related Tables

Use these payroll-related tables to set up and process benefits information:

• Deduction table

• Earnings table

• Pay Group table

Slide 18

Student Notes

Using Payroll Related Tables

This table describes how these payroll tables relate to benefits information processing:

Table Use

Deduction table Establish payroll deductions for benefit plans and to specify:

The deduction frequency.

The affect of the deduction on taxable gross income.

Arrears processing.The associated general ledger expense and liability accounts.

Earnings table Define earnings codes for leave categories to track holidays, vacations, sick time, juryduty, and personal time.

Pay Group table Link a benefit program to a pay group so that when you hire new employees or assignthem to a pay group, the system automatically assigns them to a benefit program.

Setting Default Pay Groups

You can override the default from the Pay Group table by entering the appropriate benefit program at theemployee level.


21




Base Benefit Tables

The core tables that you set up to establish your benefit programs and plans include:

• Provider/Vendor table.

• Benefit Plan table.

• Plan Attribute tables.

• Rate tables.

• Coverage Formula tables.

• Calculation Rules table.

• Benefit Program table.

Slide 19


22




Workforce Administration Pages

This table describes the pages used to hire a new employee and enroll the employee in a benefit program:

Component Use

Add a Person Enter a person's biographical and contact information into the database.

Job Data Enter the employee's work location, job status, payroll and salary plan information, andcompensation details.

Benefit ProgramParticipation

Assign the employee to a benefit program.

Slide 20

Student Notes

Using Biographical Information for Benefits

Biographical information includes employee gender and age, both of which can be used as the basis forcalculating benefit premiums. Age can also be used to determine eligibility for benefit plans.

Using Job Data

Job data such as employee status, full or part-time, regular or temporary, standard hours, job code, andcompany can determine employee eligibility for benefit programs. Eligibility for benefit plans is based on the benefit program the employee is in. In addition, coverage in some plans is based on the employee's annualcompensation rate. If you need to use a different annual rate (for example, with commission sales employees), plans can be based on an alternate rate, the Annual Benefits Base Rate.


24




Benefit Enrollment Pages

Use the Update Dependent/Beneficiary page to enter an employee's dependents and beneficiaries into thedatabase.

Use these pages to enroll employees and dependents in individual plans:

• Health Benefits

• Life and AD/D Benefits

• Disability Benefits

• Savings Plans

• Pension Plans

• Leave Plans

• FSA Plans

Slide 21

Student Notes

Benefit Enrollment Pages

Use the components in the Benefits menu to enroll employees in benefit plans. Employees can elect benefit plan coverage and specify dependents and beneficiaries.


25



Describing Sources of Information About PeopleSoft EnterpriseHuman Resources Base Benefits in PeopleBooks (continued)

Implementation and Business Process Information

Use the PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base Benefits to findimplementation and business process information for PeopleSoft Base Benefits, including:

• Information about beginning an implementation.

• Navigation information.

• Implementation concepts and tasks.

• Business process concepts and tasks.

• Appendixes and report samples.

Slide 23


27



Student Notes

Additional Information

This table lists the locations of additional information in the PeopleSoft Human 9.0 Resources PeopleBook: Manage Base Benefits:

Location Type of Information

Getting Started chapter This chapter provides general implementation information and references toadditional sources of pertinent information.

The release of PeopleSoft Setup Manager has eliminated the need to provide anoverview of the implementation steps that was included in previous Getting Startedchapters. With this release, the Getting Started chapters now contain:

• General information about PeopleSoft Setup Manager.

• A list of setup components for which a component interface exists that can be usedwith the Excel to Component Interface utility.

Implementation chapters These chapters discuss implementation concepts and tasks:

• Setting Up Core Human Resources Base Benefits Tables

• Setting Up Benefit Plans

• Building Base Benefit Programs

• Setting Up Additional Human Resources Base Benefits Features

Business process chapters The chapters that follow the implementation chapters discuss business processconsiderations that are helpful to both implementers and power users.

Appendixes and report samples The appendixes provide reference information about the reports and workflows thatare delivered with the system. Samples of reports appear at the end of theappendixes.


28



Review

In this chapter, you learned that:

• Base Benefits is delivered as part of PeopleSoft Enterprise Human Resources.

• The benefits process has four phases.

• The system can store an unlimited number of benefit records for employees, dependents, and retirees.

• You must hire employees through the components in the Workforce Administration menu before you canenroll them in benefit plans.

• ThePeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base Benefits contains informationfor implementing PeopleSoft Base Benefits.

Slide 24


29



Lesson 3

Setting Up Payroll Deductions

Objectives


• Set up payroll deduction codes for benefit plans.

• Determine deduction classifications.

• Specify deduction tax effects.

• Determine settings for specific processing.

• Specify the frequency of benefit deductions.

Slide 26

31



Setting Up Payroll Deduction Codes for Benefit Plans

Setting Up Deductions

These are three options for setting up deductions:

• One deduction for each plan type.

• One deduction for each plan type and benefit plan combination.

• One deduction for each plan provider.

Slide 27

Setting Up Payroll Deductions Lesson 3

32



Student Notes

Setting Up Deductions

Note. When you set up your tables, remember that the description on the pay earnings statement is thededuction description on the deduction code table.

Example of Deduction Codes by Plan Type

This table shows deduction codes by plan type:

PlanType

BenefitPlan Plan Description

DeductionCode

DeductionDescription

General Ledger Acct

20 2x Coverage is 2 times the base pay. LIFINS Life 1111-1111

20 3x Coverage is 3 times the base pay. LIFINS Life 1111-1111

20 FLTRT Coverage is a flat rate of 50,000USD.

LIFINS Life 1111-1111

20 FBBF Factor x Base + Flat Amount -Coverage is 3 times the benefits base plus 10,000 USD.


20 FBBF2 Factor x Base + Flat Amount -Coverage is 3 times the benefits base plus 20,000 USD.


Example of Deduction Descriptions that Differ by Plan

This table shows that the deduction description can also differ by plan:

Lesson 3 Setting Up Payroll Deductions

33



PlanType


DeductionCode


General Ledger Acct

20 2x Coverage is 2 times the base pay. LIFINS1 2X Life 1111-1111

20 3x Coverage is 3 times the base pay. LIFINS2 3X Life 2222-2222

20 FLTRT Coverage is a flat rate of 50,000

USD.

LIFINS3 50K Life 3333-3333


LIFINS4 3X + 10K Life 4444-4444


LIFINS5 3X + 20K Life 5555-5555

Example of Deduction Codes by Plan Provider

This table shows deduction codes by plan provider:

PlanType


DeductionCode


General Ledger Acct

20 2x Coverage is 2 times the base pay. LONDON Life 1111-1111

20 3x Coverage is 3 times the base pay. LONDON Life 1111-1111

20 FLTRT Coverage is a flat rate of 50,000

USD.

STNDRD 50K Life 2222-2222


MIRASOU 3X Life 3333-3333


MIRASOU 3X Life 3333-3333


34



Setting Up Payroll Deduction Codes for Benefit Plans (continued)

Using the Deduction Table

This diagram illustrates how the pages within the Deduction Table component are associated:

Slide 28


35



Student Notes

Page Used to Set Up Deduction Information

Page Name Navigation

Deduction Table – Setup Set Up HRMS, Product Related, Payroll for North America, Deductions, DeductionTable, Setup

Use this page to set up deduction information:

Deduction Table – Setup page


36



Determining Deduction Classifications

(USA) Setting Up Tax Classifications

This diagram shows the options to select for various tax classifications:

Slide 29


37



Student Notes

Page Used to Indicate Tax Classification Type


Deduction Table -Tax Class Set Up HRMS, Product Related, North American Payroll, Deductions, DeductionTable, Tax Class

Use this page to indicate the type of tax classification that is used by this deduction code:

Deduction Table – Tax Class page


38



Determining Deduction Classifications (continued)

(CAN) Setting Up Tax Classifications

This diagram shows the options to select for various tax classifications:

Slide 30


40



Determining Deduction Classifications (continued)

Deduction Classification Scenarios

Examples of the deduction classifications option are based on these scenarios:

• The employer pays the entire life insurance premium.

• (USA) A 401(k) plan, to which employees may contribute before-tax-only or a combination of before- andafter-tax.

Slide 32

Student Notes

Deduction Classification Options

This table lists the option based on these scenarios:

Scenario Deduction Classification Option

Employer pays entire life insurance premium. (USA) Select Nontaxable Benefit and Taxable Benefit(this might affect imputed income).

(CAN) Select Taxable.

(USA) 401(k) plan. (Employees may contribute

before-tax-only or a combination of before- and after-tax.)

Note. If After-Tax is not selected, the employee's after-taxcontribution is not calculated.

If your organization offers after-tax and before-tax

employee contributions and matches both types ofcontributions, select:

After-Tax.

Before-Tax.

Nontaxable Benefit.

Nontaxable, Before-tax Benefit.


43



Student Notes

Page Used to Indicate Tax Calculations Effect


Deduction Table - Tax Effect Set Up HRMS, Product Related, North American Payroll, Deductions, DeductionTable, Tax Effect

Use this page to indicate how the tax classification affects tax calculations:

Deduction Table – Tax Effect page

(USA) Considerations for Specifying Tax Effects

When specifying tax effects for a deduction code, consider these questions:

• Does the deduction add to, subtract from, or have any effect on Federal Insurance Contributions Act (FICA) or Federal Unemployment Tax (FUT ) gross?

• Are taxes calculated differently at the federal, state, and local level?

• How is imputed income processed for this deduction code?


45



Specifying Deduction Tax Effects (continued)

(CAN) Tax Effects

The system uses Effect on Canadian Pension Plan (CPP) Gross, Effect on Employment Insurance (EI) Gross,Effect on Quebec Income Tax (QIT) Gross, Effect on Quebec Pension Plan (QPP) Gross, and Effect onQuebec Parental Insurance Plan (QPIP) gross to determine the taxable gross for these taxes:

Canadian Options Description

Eff on True T4 Gross and Eff on True RL Gross Selected for deductions that are taxable benefits. In mostcases, before-tax deductions are set to No Effect, becauseyou would not want to reduce the gross amount by theamount of the before-tax deduction.

Eff on Payroll Tax Gross Applies only to the Northwest Territories and Nunavut

Taxable Gross calculations for employees designatedSubject to Payroll Tax.

Slide 34

Student Notes

Understanding Deduction Tax Effects

This is an important page for setting up the tax effect on your taxable gross buckets. If this page is set upincorrectly, it could cause a reconciliation problem for year–end slips and tax calculation that would bedifficult to resolve. For example, if you are setting up life insurance as a taxable benefit, Canadian IncomeTax is already affected by indicating taxable benefit, but you have to ensure that the effect on CPP isindicated as "Adds To" but not the effect on employment insurance. Employment insurance remains as "NoEffect." Employment insurance is only indicated for Board and Lodging and Group RRSP taxable benefits. Ifyou have Quebec employees, you have to indicate that QPP and QIT is "Adds To." T4 and RL Grosses needsto be "Adds to" in case you want to report on those buckets to review what your Box 14 on T4 and Box A on Releve 1 would be.


46



Determining Settings for Specific Processing

Deduction Options

On the Process page, you can select combinations of these deduction options for each tax class:

• Partial deduction allowed.

• Deduction arrears allowed.

• Deductions taken from separate check.

• Stop deductions at termination.

Slide 35


47



Student Notes

Page Used to Define Specific Processing Settings


Deduction Table - Process Set Up HRMS, Product Related, North American Payroll, Deductions, DeductionTable, Process

Use this page to specify deduction method, deduction maximum, and general ledger account numbers:

Deduction Table – Process page

Considerations Before Specifying Deduction Processing

For each deduction code, answer these questions:

• Can partial deductions be taken for benefit deductions?

•

Will you allow for arrears?

• Will this deduction be deducted from checks other than regular paychecks (for example, bonus checks) thatare issued during the same pay period?

• Should the deduction continue after an employee is terminated?

The system considers both the Deduction Arrears Allowed and the Partial Deduction Allowed options whendetermining how to apply a deduction whose amount is greater than net pay.


48



Activity 1: Setting Up Payroll Deductions

In this activity, you will review the activity overview and:

1. Set up a medical deduction.

2. Set up a life insurance deduction code.

3. (USA) Add a saving plan deduction code.

4. (CAN) Add a pension plan deduction code.

Slide 37


51



Activity Overview

Global Business Institute (GBI) is adding a new benefit program for executive employees, effective January1, 2002. You are on the implementation team, and it is your responsibility to set up the program. Inconsecutive activities, you will set up the following plans so that they can be included in the executive benefit program.

Plan Type Description

Medical Provides coverage for employees and eligible dependents.

• Plan 1 provides comprehensive coverage and pays 100 percent of coveredhospital expenses with no deductible.

• (USA) Plan 2 provides supplemental coverage and pays 80 percent of coveredhospital expenses with an annual deductible of 100 USD for each coveredindividual.

Dental Provides full coverage for preventive, minor and major restorative, andorthodontia with a 100 USD deductible for each covered individual.

Life Basic life insurance of two times the employee's annualized base pay is providedat no cost.

Disability Long Term Disability pays 66 2/3 percent of pre-disability pay (up to 7,500 USDmonthly) and remains level through out disability.

Savings For U.S. employees, the company will match 50 percent of an employee's before-tax contribution up to 6 percent of the employee's gross pay during the firsttwo years of service. After two years of service, the company will match 100

percent of the employee's before-tax contribution up to 6 percent of theemployee's gross pay. Employees may contribute up to 12 percent before orafter-tax, or any combination of the two, as long as the total does not exceed 12 percent.

Leave Employees will earn vacation leave.

FSA For U.S. employees, set up a dependent care spending account to pay up to 5,000USD of dependent care expenses on a before-tax basis.

Pension Canadian employees may contribute 4 percent up to Yearly MaximumPensionable Earnings (YMPE ) and 6 percent over YMPE. The company willmatch 50 percent.

In this activity, you will create three deduction codes to link to benefit plans in a subsequent lesson.


52



(USA) Creating Deduction Codes

Create a medical deduction with no maximum arrears payback and a before-tax classification. The deductionshould subtract from both FICA and FUT. Allow for partial and arrears deductions. Define a second,nontaxable benefit tax effect with no partial or arrears deductions allowed. Set up weekly deductions.

Create a life insurance deduction with no maximum arrears payback with a nontaxable and a taxable benefitoption. The taxable option will add to FICA and have no effect on FUT. Partial and arrears deductions are not

allowed.

Create a 401(k) deduction with no maximum arrears payback and after-tax, nontaxable, and nontaxable before-tax benefit options.

(CAN) Creating Deduction Codes

Create a medical deduction with no maximum arrears payback and an after-tax classification. The deductionwill have no tax effect. Allow for partial and arrears deductions. Define a second, nontaxable benefit taxeffect with no partial or arrears deductions allowed. Set up weekly deductions.

Create a life insurance deduction with no maximum arrears payback with a nontaxable and a taxable benefitoption. The taxable option will add to QIT, CPP, QPP, T4 and RL. Partial and arrears deductions are not

allowed.

Create a pension plan deduction with no maximum arrears payback and a before-tax option that subtractsfrom QIT, CPP, QPP, and EI. Allow partial and arrears deduction processing.

Deduction Codes Already Defined

Three deduction codes have already been defined for you. The following table describes the deduction tablesthat are already created:

Plan Type (USA) Tables (CAN) Tables

Dental KUDMO KCDMO

Long-Term Disability KULTD9 KCLTD9

Flexible Spending Dependent Care LFSADC NA

Flex Spending Health - Canada(flexible spending health-Canada)

NA KCHFSA

Note. Use PS for the user name and password in this activity.


53



Activity Detailed Steps

Perform the detailed steps to complete the activity.

Setting Up a Medical Deduction

To set up a medical deduction:

1. Set up basic information.

2. Determine tax classifications.

3. Specify deduction tax implications.

4. Determine settings for partial deductions and arrears.

5. Add another tax classification.

6. Specify deduction tax implications.

7. Determine settings for partial deductions and arrears.

8. Specify the frequency of the benefit deduction.


54



Setting Up Basic Information

To set up basic information:

1. Select Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table.

2. Access the Add a New Value page, and enter the following information:

Page Element (USA) Value or Status (CAN) Value or Status

Plan Type Medical Medical

Deduction Code MED MED

3. Click Add.

4. On the Setup page, enter the following information:


Effective Date January 1, 2002 January 1, 2002

Description Medical Deduction Medical Deduction

Short Description Medical Medical

Priority 500 510

Maximum Arrears Payback No Maximum No Maximum

Determining Tax Classifications

To determine tax classifications:

1. Access the Tax Class page.

2. Enter the following information:


Deduction Calculation Before-Tax After-Tax

Canadian Sales Tax NA None


55



Specifying Deduction Tax Implications

To specify deduction tax implications:

1. Access the Tax Effect page.



Effect on FICA Gross Subtracts NA

Effect on FUT Gross Subtracts NA

Taxable Gross Comp ID 125 NA

Effect on QIT Gross NA No Effect

Effect on CPP Gross NA No Effect

Effect on QPP Gross NA No Effect

Effect on EI Gross NA No Effect

Effect on QPIP NA No Effect

Effect on True T4 Gross NA No Effect

Effect on True RL Gross NA No Effect

Effect on T4A Gross NA No Effect

Effect on RL-2 Gross NA No Effect

Eff on Payroll Tax Gross NA No Effect


56



Determining Settings for Partial Deductions and Arrears

To determine settings for partial deductions and arrears, access the Process page and enter the followinginformation:


Partial Deduction Allowed Selected Selected

Deduction Arrears Allowed Selected Selected

Deductions Taken From Sep Chk Cleared Cleared

Stop Deduction At Termination Selected Selected

Liability Accounts-Non CommitmentAccounting

DED01 DED01

Adding Another Tax Classification

To add another tax classification:


2. Insert a new row in the Tax Classifications scroll area and select Nontaxable Benefit .

Specifying Deduction Tax Implications

To specify deduction tax implications:

1. Access the Tax Effect page.

2. Accept the default effects on specific taxes for the nontaxable benefit deduction classification.


57



Determining Settings for Partial Deductions and Arrears

To determine settings for partial deductions and arrears:

1. Access the Process page.

2. In the Nontaxable Benefit row, enter the following information:


Partial Deduction Allowed Cleared Cleared

Deduction Arrears Allowed Cleared Cleared


Stop Deduction At Termination Selected Selected

Liability Accounts-Non Commitment

Accounting

DED01 DED01

Specifying the Frequency of the Benefit Deduction

To specify the frequency of the benefit deduction:

1. Access the Schedule page.

2. Accept the default frequency of Weekly and verify that all of the pay period check boxes are selected.

3. Click Save.


58



Setting Up a Life Insurance Deduction Code

To set up a life insurance deduction code:

1. Select Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table.

Note. You do not need to repeat the full navigation. To build a new deduction code, click the Add button

on the bottom of the page.



Plan Type Life Life

Deduction Code LFIN LFCN

3. Click Add, and enter the following information:



Description Life Insurance Deduction Life Insurance Deduction

Short Description Life Life

Deduction Priority 500 500


4. Access the Tax Class page, and enter the following information:


Deduction Classification Nontaxable Benefit Taxable Benefit


59



9. (USA) Access the Tax Effect page, and enter the following information for the new tax classification:


Effect on FICA Gross Adds To NA

Effect on FUT Gross No Effect NA

Taxable Gross Component ID GTL NA

GTL/DPL Add to GTL NA

Withhold FWT Selected NA

10. (USA) Access the Process page, and enter the following information:


Partial Deduction Allowed Cleared NA

Deduction Arrears Allowed Cleared NA

Deductions Taken From Sep Chk Cleared NA

Stop Deduction at Termination Cleared NA


DED01 NA

11. Access the Schedule page and enter the following information:


Pay Frequency Weekly Weekly

Deduction Frequency Select each pay period Select each pay period

12. Click Save.


61



Setting Up a Savings Plan or Pension Plan Deduction Code

To set up a savings plan deduction code:

1. Select Set Up HRMS, Product Related, North American Payroll, Deductions, Deduction Table.

Note. You do not need to repeat the full navigation. To build a new deduction code, click the Add button

on the bottom of the page.



Plan Type 401(k) Standard Pension

Deduction Code 401 PNS




Description 401(k) Savings Plan Deduction Standard Pension Plan

Short Description 401(k) Pension

Deduction Priority 540 540


4. Access the Tax Class page, and enter the following information:


Deduction Classification After Tax Before Tax


62



5. Access the Tax Effect page, and enter or verify the following information:


Effect on FICA Gross No Effect NA


Taxable Gross Comp ID Blank NA

Effect on QIT Gross NA Subtracts

Effect on CPP Gross NA No Effect

Effect on QPP Gross NA No Effect

Effect on EI Gross NA No Effect

Eff on True T4 Gross NA No Effect

Eff on True RL Gross NA No Effect

Effect on T4A Gross NA No Effect

Effect on RL-2 Gross NA No Effect

Eff on Payroll Tax Gross NA No Effect

6. Access the Process page, and enter the following information:


Partial Deduction Allowed Cleared Cleared

Deduction Arrears Allowed Cleared Selected


Stop Deduction at Termination Cleared Selected


DED01 DED01


8. Insert a new row in the Tax Classifications scroll area, and select the Nontaxable Benefit option.


63



9. Access the Tax Effect page, and enter the following information for the new tax classification:


Effect on FICA Gross No Effect NA


10. Access the Process page, and enter the following information:


Partial Deduction Allowed Cleared Selected

Deduction Arrears Allowed Cleared Selected


Stop Deduction at Termination Cleared Selected


DED01 DED01

11. (USA) Access the Tax Class page.

12. (USA) Insert a new row in the Tax Classifications scroll area, and select the Nontaxable Btax Benefitoption.

13. (USA) Access the Tax Effect page, and accept the default effects on specific taxes for the third deductionclassification.

14. (USA) Access the Process page, and enter the following information for the third deduction classification:


Partial Deduction Allowed Cleared NA

Deduction Arrears Allowed Cleared NA

Deductions Taken from SeparateCheck

Cleared NA

Stop Deduction at Termination Cleared NA


DED01 NA


64



15. Access the Schedule page, and enter or verify the following information:

Grid Column Label (USA) Value or Status (CAN) Value or Status

Pay Frequency Weekly Weekly

Deduction Frequency Select every pay period Select First Pay Period only

16. (CAN) Add a new row, and enter the following information:


Pay Frequency NA Biweekly

Deduction Frequency NA Select First Pay Period only



Pay Frequency NA Semimonthly




Pay Frequency NA Monthly


19. Click Save.

This concludes the activity. Please do not continue.


65



Review

In this lesson, you learned that:

• Payroll deductions are set up on the Deduction table.

• Each deduction has at least one tax classification.

• If an employee's net pay is insufficient to cover taxes and deductions, you can track and collect outstandingbalances.

• You can specify the tax effects of the deduction.

• Deductions are applied at the same frequency for all tax classifications.

Slide 38

Student Notes

Additional Resources

This table lists additional resources that provide more details about the topics that we have discussed in thislesson:

Topic Cross-Reference

Deduction tax effects, frequency of benefitdeductions, and settings for specific

processing

PeopleSoft Enterprise Payroll for North America 9.0 PeopleBook ,"Defining Deductions"


66



Identifying Health Plan Components

Components of a Health Benefit Plan:

This diagram illustrates the components that we will use to create a health plan:

Slide 41

Student Notes

Making Planning Decisions

Before creating the actual tables for your benefit plans, you must consider these questions:

• Which plan type category does this plan best fit into?

• How will the deduction be processed?

• Who is sponsoring the plan?

• What best describes this health plan?

• What type of rate will I need to use?

• Will I need to specify calculation rules for this type of rate?

Not all plan types or plans require the use of the Calculation Rules table, such as health plans that use the FlatRate type table to determine costs. However, because an entry must be made in the Calc TblID field on theCost page of the Benefit Plan Table component, PeopleSoft delivers KNON as a dummy rule for entry in thisfield when the Flat Rate option is selected in the Benefit Rate Type field.

An example of when you need to set up a calculation rule is when you use the age-graded rate table for lifeinsurance. The Calculations Rules table specifies age as of what date.

Note. You should set up a worksheet to organize your information before you begin entering data into thesystem.

Setting Up Benefit Plans, Health Plans, and Benefit Programs Lesson 4

68



Adding a Plan Provider

Considerations Before Making Planning Decisions

Before modifying the actual tables, you must consider these questions:

• Who is providing the policy?

• Where do we send payments?

• What are some plans that might not have a provider (keeping in mind that most plans have a provider)?

Slide 42

Lesson 4 Setting Up Benefit Plans, Health Plans, and Benefit Programs

69



Student Notes

Pages Used to Enter Provider/Vendor Information


Provider/Vendor Table-Vendor Information

Set Up HRMS, Product Related, Base Benefits, Plans and Providers,Provider/Vendor Table, Vendor Information

Provider/VendorTable-Addresses

Set Up HRMS, Product Related, Base Benefits, Plans and Providers,Provider/Vendor Table, Addresses

Provider/VendorTable-Locations

Set Up HRMS, Product Related, Base Benefits, Plans and Providers,Provider/Vendor Table, Locations

Provider/VendorTable-Contacts

Set Up HRMS, Product Related, Base Benefits, Plans and Providers,Provider/Vendor Table, Contacts

Provider/Vendor Table-PolicyInformation

Set Up HRMS, Product Related, Base Benefits, Plans and Providers,Provider/Vendor Table, Policy Information

• Use this page to enter a provider's information:

Provider/Vendor Table-Vendor Information page


70



• Use this page to enter the provider's address:

Provider/Vendor Table–Addresses page

• Use this page to enter the provider's location:

Provider/Vendor Table-Locations page


71



• Use this page to enter the provider's contact information:

Provider/Vendor Table-Contacts page

• Use this page to enter policy information:

Provider/Vendor Table-Policy Information page


72



Setting Up a Benefit Plan and a Health Plan

Benefit Plan Table Fields and Their Source Tables

This table lists the source tables for fields on the Benefit Plan Table page:

Field Source Table

Vendor ID Provider/Vendor

Group Number Provider/Vendor

Default Deduction Code Deduction

Contact ID Administrative Contacts

Slide 43


73



Setting Up a Benefit Plan and a Health Plan (continued)

Defining a Health Plan

This diagram shows the shared keys between the Benefit Plan table and the Health Plan table:

Slide 44


75



Student Notes

Page Used to Define a Health Plan


Health Plan Table Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Health Plan Table

Use this page to define attributes that control enrollment validation and processing for self-service users:

Health Plan Table page

Describing the Relationship Between the Benefit Plan Table and a Plan Attribute Table

The Benefit Plan table and the plan attribute tables share the same key field structure.

Plan attribute tables can't be built without first building the Benefit Plan table. Because of this, you canconsider the plan attribute tables as a continuation of the Benefit Plan table.

Note. When the system retrieves information from the Benefit Plan table, it also checks the plan attributetable. Because SQL often joins these tables, if the values are not defined in the tables or if a row is missing,the system might not know that a benefit plan type is defined.


76



Defining Coverage Codes

Coverage Codes

This table lists the coverage codes delivered with PeopleSoft Human Resources Base Benefits:

• Employee Only (1)

• Employee + Spouse (2)

• Employee + Dependents (3)

• Family (4)

• (USA) Domestic Partner Adult (5)

• (USA) Domestic Partner Child(ren) (6)

• (USA) Domestic Partner Adult + Child(ren) (7)

• Employee + Domestic Partner (12)

• Employee + Domestic Partner + Child(ren) (14)

Slide 45


77



Understanding Imputed Income

Imputed income is conceptual income that a company pays to a third party on behalf of an employee. Theemployee does not actually receive the money. For example, premium amounts for life insurance in excess of50,000 USD in coverage are considered taxable income. This conceptual income is added to the employee'sgross wages, and the employee is taxed on this amount.

The IRS considers benefits received by nonqualified dependents to be taxable income. For example, the IRS

taxes employees for the employer-paid portions of domestic partner health benefits, and it also taxes all of the benefits that nonqualified dependents receive from dependent life plans. In both cases, the system performsimputed income calculations.

Note. To correctly deduct and calculate imputed income, you must set up deduction codes that include ataxable deduction classification.


79



Student Notes

Page Used to Set Up a Benefit Rate Type


Benefit Rate Types Setup HRMS, Product-Related, Base Benefits, Rates andRules, Benefit Rate Types

Use this page to set up benefit rate types:

Benefit Rate Types page

This table describes the delivered fields on which you can basa benefit rate type:


81



Field Description

Age (in years) The covered person's (employee, spouse, or otherdependent) age, calculated using their birthdate and theAge-As-Of field on the Calculation Rules Table.

Benefit Base The employee's compensation base, calculated using theseveral benefit base-related attributes in the Calculation

Rules Table.

Benefit Plan The employee's enrolled benefit plan.

Coverage Code The employee's enrolled coverage code.

Covered Person Type The covered person type (Employee, Spouse, DomesticPartner, Child, etc) of the individual whose ratecomponent is being calculated.

Gender The covered person's gender.

Months of Service The employee's length of service, calculated using theirService Date and the "Service-As-Of" attribute in theCalculation Rules Table.

Smoker Status The covered person's smoker status.


82



Activity Overview

In this activity, you will set up the medical and dental plan options that are available for your executives.

Medical

You will set up the following medical plans:

• Plan 1 provides comprehensive coverage and pays 100 percent of covered hospital expenses with nodeductible.

• (USA) Plan 2 provides supplemental coverage and pays 80 percent of covered hospital expenses with anannual deductible of 100 USD for each covered individual.

Dental

The dental plan provides full coverage for preventive, minor, and major restorative and orthodontia with a100 USD deductible for each covered individual.

When you're finished, you'll have several unique table entries or distinct pieces of information. You will then

link these pieces to form your benefit plans when you assemble your benefit program.

Note. Some values have already been set up in the system. In Lesson 3, Activity 1, you set up the deductioncodes. One vendor ID has been created already for this activity. You will be building the tables in italics below.

(USA) Tables Used in this Activity

Table Medical Plan 1 Medical Plan 2 Dental Plan

Deduction MED MED KUDMO

Provider/Vendor FOUND FOUND USAKUDELTA

Benefit Plan BSM SUPP DNTL

Health Plan (plan-specific) BSM SUPP DNTL

Benefit Rate(employee-only)

M M D

Benefit Rate (family) MF MF DF


86



5. Select the Edit Address link, and enter the following information:


Address 1 2500 Grand Ave 10101 9thStreet

City Des Moines Edmonton

State IA AB

Postal 50215 T6J 7A1

6. Click OK to return to the Addresses page.

7. Access the Locations page, and enter the following information:


Location HQ HQ

Description Foundation Health Care Alberta Health Care


Status Active Active

Vendor FOUND AHC

Location HQ HQ

Address 1 1

8. Access the Contacts page, and enter the following information:


Description Foundation Health Care Alberta Health Care


Status Active Active

Type Customer Service Claims

Contact Name Carrie Turner Carrie Hall

Title Member Services Representative Member Claims Representative


89



(USA) Setting Up the Supplemental Medical Plan

1. Click the Add button at the bottom of the page, and enter the following information for the supplementalmedical benefit plan:

Page Element Value or Status

Plan Type Medical

Benefit Plan SUPP



Effective Date 01/01/2002

Description Supplemental Medical Coverage

Short Description Suppmed

SetID SHARE

Vendor ID FOUND

Default Deduction Code MED

3. Click Save.


92



Setting Up the Dental Plan

1. Click the Add button at the bottom of the page, and enter the following information for the dental benefitplan:


Plan Type Dental Dental

Benefit Plan DNTL DNTL




Description Full Dental Coverage Full Dental Coverage

Short Description Dental Dental

SetID SHARE SHARE

Vendor ID USAKUDELTA AHC

Default Deduction Code KUDMO KCDMO

3. Click Save.


93




To set up the Health Plan table for the supplemental medical plan:

1. Click the Add button at the bottom of the page, and enter the following information for the supplementalmedical plan:


Plan Type 10

Benefit Plan SUPP



Effective Date January 1, 2002

Health Provider Required Required

3. Click Save.

Setting Up the Dental Plan

To set up the Health Plan table for the dental plan:

1. Click the Add button at the bottom of the page and enter the following information for the dental plan:


Plan Type 11 11





Health Provider Required Required Not Required

3. Click Save.


95



Setting Up Rates in the Benefit Rate Table

To set up flat rates in the Benefit Rate table:

• Set up the medical plan.

• (USA) Set up the supplemental medical plan.

• Set up the dental plan.

Setting Up the Medical Plan

To set up the medical plan:

• Establish an employee-only coverage rate.

• Establish a family coverage rate.

Establishing an Employee-Only Coverage Rate

To establish an employee-only coverage rate:

1. Select Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Benefit Rates.

2. Access the Add a New Value page, and enter M in the Benefit Rate Table ID field.




Benefit Rate Type Flat Rate Flat Rate

Description Basic Medical - Employee Only Basic Medical - Employee Only

Short Description Med-EEonly Med-Eeonly

Premium Frequency Monthly Monthly

Rate per Unit None None

Currency Code USD CAD

Total 138.0000 25.0000

Employer Rate 69.0000 12.5000

4. Click Save.


96



Establishing a Family Coverage Rate

To establish a family coverage rate:

1. Click the Add button at the bottom of the page, and enter MF in the Benefit Rate Table ID field.

2. Click Add and enter the following information:




Description Basic Medical - Family Basic Medical - Family

Short Description Med-Family Med-Family


Rate per Unit None None


Total 169.0000 50.0000

Employer Rate 84.5000 25.0000

3. Click Save.


97




To set up the supplemental medical plan:

1. Click the Add button at the bottom of the page to set up the supplemental medical plan employee-onlyrate.

2. Enter MS as the Benefit Rate Table ID.




Benefit Rate Type Flat Rate

Description Med-Supplemental Employee only

Short Description SuppEEonly

Premium Frequency Monthly

Rate Per Unit None

Currency Code USD

Total 150.00

Employer Rate 75.00

4. Click Save.

5. Click the Add button at the bottom of the page to set up the supplemental medical plan family rate.

6. Enter MP as the Benefit Rate Table ID.


98



7. Click Add and enter following information:




Description Med-Supplemental Family

Short Description SuppFamily


Rate Per Unit None

Currency Code USD

Total 196.00

Employer Rate 98.00

8. Click Save.


99







Description Dental-Family Dental-Family

Short Description DenFamily DenFamily


Rate Per Unit None None

Currency Code USA CAD

Total 33.00 9.75

Employee Rate 33.00 7.25

8. Click Save.



101



Student Notes

Page Used to Define a Benefit Program


Benefit Program Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Benefit Program

Use this page to define the general parameters of the benefit program:

Benefit Program page

Important! Be sure that the effective date is correct when you add a benefit program. After you save a

benefit program, you can correct the effective date only through SQL.


103



Student Notes

Page Used to Define Benefit Program Plans and Options


Plan Type and Option Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Plan Type and Option

Use this page to associate the benefit plans that you set up with a program and to identify the payrolldeduction rules and coverage code options:

Plan Type and Option page


105



Adding a Health Plan to a Benefit Program (continued)

Source Tables for the Plan Type Fields (continued)

This table lists the source tables for the different plan type fields:

Field Source Table

Cost Type Translate (Price/Credit)

Benefit Rate Type Translate

Rate ID Dependent upon the value selected in the Rate Type field

Calc TblID Calculation Rules

Slide 51


106



Activity 3: Creating a Benefit Program


1. Create a benefit program.

2. Insert the medical plans with employee-only and family coverage codes.

3. Insert the dental plan with employee-only and family coverage codes.

Slide 52

Activity Overview

Now that you have defined the necessary health plans, you will add a new executive benefits program to theBenefit Program table and include the appropriate medical and dental options.


108





Creating a Benefit Program

To create the executive benefits program:

1. Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit Program Table.



Benefit Program X X


Note. Make sure to enter the proper effective date for your benefit program.



Status as of Effective Date Active Active

Description Executive Benefits Program Executive Benefits Program

Program Type* Manual Manual

Short Description Executive Executive


*The Program Type defaults to Manual when Benefits Administration is not installed.


109



7. (USA) Add a new row, enter the following information:

Grid Column Label (USA) Value or Status

Optn Type (option type) O

Benefit Plan SUPP

Covrg Code (coverage code) 4

Deductn Cd (deduction code) MED

8. Access the Cost page.

9. Using the Option scroll area, scroll to view the benefit plan BSM , coverage code 1, and enter thefollowing information:


Cost Type Price Price


Rate ID (rate ID) M M

Calc TblID KNON KNON

10. Scroll to view the benefit plan BSM , coverage code 4, and enter the following cost information:




Rate ID (rate ID) MF MF



111



11. (USA) Scroll to view the benefit plan SUPP, coverage code 1, and enter the following cost information:


Cost Type Price NA

Benefit Rate Type Flat Rate NA

Rate ID (rate table ID) MS NA

Calc TblID KNON NA

12. (USA) Scroll to view the benefit plan SUPP, coverage code 4, and enter the following cost information:


Cost Type Price NA

Benefit Rate Type Flat Rate NA

Rate ID (rate table ID) MP NA

Calc TblID KNON NA

13. Click Save.


112



Inserting the Dental Plan With Employee-Only and Family Coverage Codes

To insert the dental plan for employee-only and family coverage:

1. Access the Plan Type and Option page.

2. Insert a row on the Plan Type scroll area.

3. Enter the dental plan type 11.

4. (USA) Select the HIPAA Plan check box.

5. Enter this information in the Option group box on the Eligibility tab:


Optn Type (option type) O O


Covrg Code (coverage code) 1 1

Deductn Cd (deduction code) KUDMO KCDMO

6. Add a new row, and enter the following information:




Covrg Code (coverage code) 4 4

Deductn Cd (deduction code) KUDMO KCDMO


8. Using the options scroll area, scroll to view the benefit plan DNTL, coverage code 1, and enter thefollowing cost information:



Benefit Rate Type Flat Flat

Rate l ID (rate table ID) D D



113



9. Scroll to view the benefit plan DNTL, coverage code 4, and enter the following cost information:



Benefit Rate Type Flat Flat

Rate l ID (rate table ID) DF DF


10. Click Save.

(USA) Results

When you have completed the activity, your program will include the information reflected in the following

table:

Plan Type Deduction Code Coverage Code Benefit Plan Benefit Rate

10 Basic Medical MED 1 (Employee Only) BSM M

10 Basic Medical MED 4 (Family) BSM MF

10 SupplementalMedical

MED 1 (Employee Only) SUPP MS

10 Supplemental

Medical

MED 4 (Family) SUPP MP

11 Dental KUDMO 1 (Employee Only) DNTL D

11 Dental KUDMO 4 (Family) DNTL DF


114




115


(CAN) Results

When you have completed the activity, your program will include the information reflected in the following

table:

Plan Type Deduction Code Coverage Code Benefit Plan Benefit Rate

10 Basic Medical MED 1 (Employee Only) BSM M

10 Basic Medical MED 4 (Family) BSM MF

11 Dental KCDMO 1 (Employee Only) DNTL D

11 Dental KCDMO 4 (Family) DNTL DF



Review


• To create a health plan, you use data that is set up in the Plan Type table, the Deduction Code table, the

Provider/Vendor table, the Benefit Plan table, the Health Plan table, and the Benefit Rate table.

• The Provider/Vendor Table page can interface with PeopleSoft Enterprise Payables.

• The Benefit Plan and Health Plan tables share the same key structure.

• You link the coverage codes to rates in a benefit program.

• You use the Benefit Rate Table page to establish a rate.

• A benefit program is set up in three levels: benefit program effective date, plan type, and plan options.

Slide 53

Student Notes



Topic See

Health plan components and

associating benefit plans with benefit programs

PeopleSoft Enterprise Human Resources 9.0 PeopleBook, "Manage BaseBenefits," Building Base Benefit Programs

Plan providers PeopleSoft Enterprise HRMS 9.0 Application Fundamentals PeopleBook , "Setting Up Vendors"

Benefit plan tables and plan-specific tables PeopleSoft Enterprise Human Resources 9.0 PeopleBook, "Manage BaseBenefits," Setting Up Benefit Plans

Coverage code definition and rates for a

benefit plan

PeopleSoft Enterprise Human Resources 9.0 PeopleBook, "Manage Base

Benefits," Setting Up Core Human Resources Base Benefits Tables

Relationships that qualify as dependents PeopleSoft Enterprise Human Resources 9.0 PeopleBook, "Manage BaseBenefits," Entering Dependents and Beneficiary Information


116



Lesson 5

Setting Up Life Insurance Plans

Objectives


• Identify life insurance plan components.

• Define a life insurance plan.

• Define coverage rates.

• Define calculation rules.

• Add a life insurance plan to a benefit program.

Slide 55

117



Student Notes

Pages Used to Define Coverage Amounts


Life and AD/D Plan Table -Life/Accidental

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Life and AD/D PlanTable, Life/Accidental

Use this page to define the coverage amount of your life insurance plans:

Life/Accidental page

Setting Up Life Insurance Plans Lesson 5

120



Defining a Life Insurance Plan (continued)

Reduction of AD/D Coverage Due to Group Maximum

This diagram illustrates how to set up a coverage maximum for a group of plans:

Slide 58

Lesson 5 Setting Up Life Insurance Plans

121



Defining a Life Insurance Plan (continued)

Defining Coverage Type

Define Coverage at either the Plan Level or Employee Level. Select Employee Level to indicate that coveragefor this plan is specified by the flat amount on the enrollment page.

If you select Plan Level, you must select a value from the available coverage formula IDs.

Slide 59


124



Coverage Formula page (2 of 2)

You can create formulas to define how coverage should be calculated. Coverage formulas are used by bothlife and disability insurance plans. You can specify how the benefits compensation base is determined, aformula to apply against that base to derive a coverage amount, and limits on the coverage amount. You canalso define whether the coverage is subject to reduction based on attained age.


126



Defining Coverage Rates

Defining the Benefit Rate Tables

The system calculates how the cost of coverage is split between the employer and the employee based on theentries you make in the Total Rate field and either the Employee Rate field or Employer Rate field.

Slide 60


127



Student Notes

Pages Used to Set Up Rates for Medical Plans


Benefit Rate Table Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Benefit Rate Table

Add or select a table based on a benefit rate type.

• Use the age-graded rate table type to establish coverage rates that vary based on the employee's age, gender,and smoker status:

Benefit Rate Table – Age-Graded


128



• Use the flat rate type Benefit Rate table to establish a rate when the premium has no variable such as age orgender:

Benefit Rate Table – Flat Rate


129



Defining Calculation Rules (continued)

Annual Benefits Base Rates (ABBR)

To use multiple ABBRs, you must:

1. Define your ABBR types on the ABBR Type page.

2. Indicate the ABBR type to use for a plan on the calculation rules table.

3. Define the multiple ABBRs for an employee on the Update Annual Ben Base Rates page.

Slide 62


132



Student Notes

Pages Used to Define Annual Benefits Base Rate Types


ABBR Type Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Annl Benef BaseRt Type Tbl

Update Annual Ben BaseRates (update annual benefit base rates)

Benefits, Employee/Dependent Information, Update ABBRs

• Use this page to define annual benefit base rates:

ABBR Type page

• Use this page to enter and maintain multiple ABBRs for an employee:

Update Annual Ben Base Rates page


133



Adding a Life Insurance Plan to a Benefit Program

Building a Benefit Program

This diagram shows the plans that we will have in our benefit program after completing the activity for thislesson:

Slide 63


135



Student Notes

Page Used to Add Life Insurance Plans to a Benefit Program


Benefit Program Table-PlanType and Option

Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Plan Type and Option

Benefit Program Table-Cost Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Cost

• Use this page to bring the components of a life plan together:



136



Activity 4: Setting Up Life Insurance Plans


1. Set up the benefit plan table.

2. Set up the Life and AD/D Plan table.

3. Set up the rate table.

4. Set up the calculation rules table.

5. Add the new life insurance plan to the executive benefit program.

Slide 64

Activity OverviewThe deduction code for life insurance, LFIN, was set up in "Setting Up Payroll Deductions." Data is alreadyin the Provider/Vendor table.

In this activity, you will set up the remaining tables for a life insurance plan.

Define a new benefit plan using the plan type Life and create the life insurance plan using the coverage 2times the Annual Benefit Base Rate (ABBR).

Define the age-graded rate for males and females with the age ranges 0-39 and 40 and older. Create thecalculation rule using the check date for all calculation dates.


138



Activity Detail Steps


Setting Up the Benefit Plan Table

To set up the benefit plan table:

1. Select Set Up HRMS, Product Related, Base Benefits, Plans and Providers, Benefit Plan Table.



Plan Type Life Life

Benefit Plan 2X 2X




Description Life Insurance-2X Pay Life Insurance-2X Pay

Short Description 2X Pay 2X Pay

SetID SHARE SHARE

Vendor ID USAKUMETLF CANKCLONDN

Group Number Blank Blank

Default Deduction Code LFIN LFCN

Minimum Spousal Allocation % 50 50

4. Click Save.


139



Setting Up the Calculation Rules Table

To set up the calculation rules table:

1. Select Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Calculation Rules Table.

2. Access the Add a New Value page.

3. Enter C1 as the calculation rules table ID.




Description Calculation Rule 1 Calculation Rule 1

Short Description C1 C1

Use Age As Of Check Date Check Date

Use Service As Of Check Date Check Date

Source of Demographics Employee Employee

Use Benefits Base As Of Check Date Check Date

Source • Annual Benefits Base Rate

• PRIM

• Annual Benefits Base Rate

• PRIM

Multiple Jobs cleared cleared

Optional Rate Limit cleared cleared

5. Click Save.


142



Review


• You can define a minimal spousal allocation percent in the Benefit Plan component for plans in the life,

savings, or pension categories to enforce or monitor compliance with mandated limits assigned to a spouse.

• You use the Life and AD/D page to define coverage for life insurance and accidental death plans.

• Life insurance plans can use many different rate tables.

• You use coverage formulas to identify as of dates, coverage minimums and maximums, benefits base, androunding rules.

• You use calculation rules to define additional processing rules for some plan types.

• Life insurance plans can be added to any benefit program.

Slide 65

Student Notes




Life insurance plan components PeopleSoft Human Resources 9.0 PeopleBook: Manage Base Benefits,"Building Base Benefit Programs"

Benefit plan and plan-specific tables PeopleSoft Human Resources 9.0 PeopleBook: Manage Base Benefits,"Setting Up Benefit Plans"

Coverage rates and calculation rules PeopleSoft Human Resources 9.0 PeopleBook: Manage Base Benefits,"Setting Up Core Human Resources Base Benefits Tables"


144



Lesson 6

Setting Up Disability Plans

Objectives


• Identify disability plan components.

• Set up a formula.

• Create a disability plan.

• Establish coverage rates based on length of service.

• Add a disability plan to a benefit program.

Slide 67

145



Student Notes

Student Notes

Page Used to Define a Formula ID


Coverage Formula Set Up HRMS, Product Related, Base Benefits, Rates andRules, Coverage Formula Table, Coverage Formula

Use this page to set up a formula that defines the amount used as the basis of the salary replacement percentage.

Coverage Formula page (1 of 2)

Setting Up Disability Plans Lesson 6

148



Creating a Disability Plan

Setting Up the Disability Plan Table

This diagram illustrates how the Benefit Plan table shares the same keys as the Disability Plan table:

Slide 70


150



Student Notes

Page Used to Define Disability Plans


Disability Plan Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Disability PlanTable

Use this page to define the maximum benefit amount and the salary replacement percent for disabledemployees:

Disability Plan page

Disability Deduction Calculations

Premiums are based on employee salary or covered salary, whichever is lower.

Covered Salary = Maximum Monthly Benefit derived by the Formula ID ÷ Salary Replacement Percentage.

Lesson 6 Setting Up Disability Plans

151



Student Notes

Pages Used to Add a Disability Plan to a Benefit Program


Benefit Program Table-PlanType and Option

Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Plan Type and Option

Benefit Program Table-Cost Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Cost

• Use this page to bring the components of a disability plan together:

Benefit Program Table – Plan Type and Option page

• Use this page to define the options costs:

Benefit Program Table – Cost page


155



Activity 5: Setting Up Disability Plans


1. Set up the Benefit Plan table.

2. Set up the Disability Plan table.

3. Modify the Coverage Formula table.

4. Set up the Benefit Rate table.

5. Set up the Calculation Rules table.

6. Add the new disability plan to the executive benefit program.

Slide 73

Activity Overview

Data is already in the Deduction and Provider/Vendor tables. In this activity you will set up the remainingtables for a disability plan.

Define a new benefit plan using the Long-Term Disability plan type and create a disability plan withmaximum monthly benefit of $7,500 and a salary replacement of 66.67 percent.

Define length of service rate premiums for 0, 36, and 60 months of service.

Create the calculation rule using the check date for all calculation dates and as of dates.


156






To set up the Benefit Plan table:




Plan Type Long-Term Disability Long-Term Disability

Benefit Plan LTD LTD




Description 66 2/3% Predisability Pay 66 2/3% Predisability Pay

Short Description 66 2/3% 66 2/3%

SetID SHARE SHARE

Vendor ID USAKUMETLF CANKCLONDN


Default Deduction Code KULTD9 KCLTD9

4. Accept the remaining default values on this page.

5. Click Save.


157



Setting Up the Disability Plan Table

To set up the Disability Plan table:

1. Select Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Disability Plan Table.



Plan Type 31 31





Formula ID KU66%_ABBR KU66%_ABBR

Salary Replacement % 66.67 66.67

Use as Base for Premium Calc selected selected

4. Click Save.

Modifying the Coverage Formula Table

To modify the Coverage Formula to limit the monthly benefit to $7,500:

1. Select Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Coverage Formula Table.

2. Select the Correct History check box and access the Formula ID KU66%_ABBR.

3. Enter 7500 in the Coverage Maximum field.

4. Click the Save button.


158



Setting Up the Calculation Rules Table

To set up the Calculation Rules table:


2. Access the Add a New Value page.

3. Enter C2 as the Calculation Rules Table ID.



Effective Date January 1. 2002 January 1. 2002

Description Calculation Rule 2 Calculation Rule 2


Use Age As Of Check Date Check Date

Use Service As Of Check Date Check Date


Use Benefit Base As Of Check Date Check Date

Source Annual Rate Annual Rate

5. Accept remaining default values on the page.

6. Click Save.


160



Review


• Disability plans require the use of the Calculations Rules table.

• You can set up a coverage formula to define the basis for disability plan coverage.

• You use the Disability Plan table to define the plan's maximum monthly benefit and salary replacementpercentage.

• You can use the Length of Service – Months type rate table to vary the proportion of the premium that ispaid by the employee and the employer depending on duration of employment with the organization.

• Disability plans can be added to any benefit program.

Slide 74

Student Notes



Topic See

Disability plan components PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base Benefits, "Building Base Benefit Programs"

The Disability Plan-Specific table PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base

Benefits, "Setting Up Benefit Plans"

Coverage rates based on length of service PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base

Benefits, "Setting Up Base Benefits Core Tables"


162



Lesson 7

(USA) Setting Up Savings Plans

Objectives


• Identify savings plan components.

• Define a savings plan.

• Set up the Service Step table.

• Set up savings plan limits.

• Set up Age 50 catch-up contributions.

• Add a savings plan to a benefit program.

Slide 76

163



Identifying Savings Plan Components

Components of a Savings Plan

This diagram illustrates the components that we will use to create a savings plan:

Slide 77

(USA) Setting Up Savings Plans Lesson 7

164



Defining a Savings Plan

The Savings Plan Table - Employee Limit on Investments Page

This diagram illustrates how the Benefit Plan Table shares the same keys as the Savings Plan table:

Slide 78


166



Student Notes

Page Used to Define Employee Contributions


Savings Plan Employee Limiton Investments

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table

Use the Employee Limit on Investments page to define how much an employee can contribute to the plan andto set up investment options:

Employee Limit on Investments page (1 of 2)

Employee Limit on Investments page (2 of 2)

Lesson 7 (USA) Setting Up Savings Plans

167



Setting Up Investment Options

To set up investment options:

1. Enter a code for the money market fund in the Investment Option field.

2. Enter an appropriate description in the Description field.

3. Click the Row Insert button to enter a new row of investment data.

4. Repeat these steps for each type of investment option.


168



Defining a Savings Plan (continued)

The Savings Plan Table - Employer Contribution/Match Page

This page defines:

• Employer matching rules.

• Employer contribution limits.

Slide 79


169



Student Notes

Page Used to Define Employer Matching Rules


Employer Contribution/Match Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table,Employer Contribution/Match

Use the Employer Contribution/Match page to define employer matching rules on before- and after-taxcontributions, and to define employer investments limits:

Employer Contribution/Match page (1 of 2)

Employer Contribution/Match page (2 of 2)

Note. The system applies the limits defined in the Rollover of Funds page before applying the employermatch options defined on this page.


170



Employer Investment Limits

You can define the maximum amount the employer contributes to a savings plan, either on a matching ornon-matching basis.

• When defining a non-matching contribution plan, this data defines the actual amount an employercontributes. For example, your organization might fund savings plans with after-tax dollars at 3% of theemployee's earnings, up to 500 USD per pay period. You would enter 3 in the After Tax % of Earnings

Limit field and 500 in the Amount per Pay Period Limit field.

• When defining a plan that has an employer match, this data defines the maximum amount of employeefunds eligible for matching, rather than defining the amount of the employer match itself. For example,your organization might match 50% of an employee's contributions, but only on a before-tax basis, up to6% of earnings or 1,000 USD per pay period, whichever is less. In this example, you would enter 6 in theBefore Tax % of Earnings Limit field and 1000 in the Amount per Pay Period Limit field.

• Use the Combined % Earnings Limit field to combine the limits for both before and after tax employermatch.

• Use the Limit Employee Match field to specify whether the limit or reduction is applied before or after theemployer match is calculated. This feature applies only for employer match calculations that use the

Service Step table.


171



Defining a Savings Plan (continued)

Savings Plan Table - Rollover of Funds Page

The rollover takes effect within a pay period. If the employee reaches the maximum yearly deduction limit but has 125 USD of a before-tax deduction left to apply, that amount posts to the deduction classificationspecified in this table:

Rollover From Rollover To Plan

Before-tax After-tax Same plan

Before-tax Before-tax Different plan

Before-tax After-tax Different plan

After-tax After-tax Different plan

Slide 80


172



Student Notes

Page Used to Define Rollover of Funds


Rollover of Funds Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table,Rollover of Funds

Use this page to define direct rollover contributions when regulatory or plan-based limits are met in the plan:

Rollover of Funds page

Note. Employer-only plans cannot receive rollovers from another plan, because rollovers are a form ofemployee contribution.

Note. The Specified at Plan Level and Specified at Employee Level options require that the employee beenrolled in the specified rollover savings plan before the actual rollover event occurs during a payroll run. Ifyou want a savings plan to receive rollover funds without active employee contributions, set up the plan asEmployee Contribution Optional on the Employee Limit on Investments page and enroll employees with a

zero contribution amount.


173



Example: Before- and After-Tax Matching

Suppose that you have a 401 (k) plan that's set up to match:

• 100 percent of the employee's before-tax contributions, for contributions up to three percent of earnings.

• 50 percent of the employee's before-tax contributions, for contributions over three percent and up to sixpercent of earnings.

• 100 percent of the employee's after-tax contributions, for contributions up to two percent of earnings.

• 75 percent of the employee's after-tax contributions, for contributions over two percent and up to fourpercent of earnings.

• 50 percent of the employee's after-tax contributions, for contributions over four percent and up to sixpercent of earnings.

Here's how you set this up:

Deduction ClassUp to Percentage of EmployeeEarnings

Percentage of EmployeeInvestment (Contributions)

Before 3 100

Before 6 50

After 2 100

After 4 75

After 6 50

This table lists the employee amounts:

Description Amount

Employee earnings 1,000 USD

Employee before-tax contribution (6%) 60 USD

Employee after-tax contribution (6%) 60 USD

Here is how the example would work with a six percent contribution by the employee:


176



Setting Up Savings Plan Limits

Defining Federally Regulated Limits

This table describes the savings plan limits that the PeopleSoft software supports:

Limit Description

401(a) Eliminates the tax advantage of highly compensated employees participating in qualified plans.

402(g) Imposes a flat annual currency limit on the amount that an employee can contribute as anelective deferral.

403(b) Determines the maximum amount that an employee can contribute to 403(b) savings plans.

415(c ) Restricts the total amount that an employee can contribute to savings plans.

457 Defines the deferred compensation plans offered by state and local governments and employersthat are exempt from federal income tax.

Slide 82


179



Student Notes

Page Used to Define Limit Table Values


Limit Table Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Limit Table

Use this page to define limit table values:

Limit Table page (1 of 3)


180



415 Limit

The 415 limit restricts the total amount that an employee can contribute to defined savings plans. 401(k) plansare the most common type of defined savings plans to be within Section 415, but other types include profit-sharing, money purchase pensions, stock bonuses, thrift savings, and target benefit plans.

Employee year-to-date contributions cannot exceed either a specific percentage amount of the employee'seligible earnings or a specific flat annual amount.

If, for a given payroll, the employee's contribution exceeds the limits, the contribution must be reduced to bewithin the limits.

Note. 415 limit types on the Limit Table page would include benefit plans under Deductions Subject to Limit(typically including 4x and 8x deductions, but not 4a plans, for all tax classes). They would also includeDeductions Which Add to Special Accumulator (which are typically plans apart from the 4x and 8x plans thatare taxable) and Deductions Which Subtract From Special Accumulator (consisting of before-tax plans otherthan 4x and 8x).

457 Limit

Section 457 plans are deferred compensation plans offered by state and local governments and employers thatare exempt from federal income tax. The amount deferred annually by an employee cannot exceed a specificflat amount or one-third of the employee's taxable income, whichever is less.


183



Setting Up Age 50 Catch-up Contributions

Managing 401(k) Limit Extensions

The Age 50 Extension process:

• Identifies employees in PeopleSoft Payroll for North America who are age 50 and over.

• Creates Age-50 limit extension records that extend the savings plan limits for elective deferrals.

Slide 83


184




186

Savings Management page

• Use this page to manage 402(g) limit extension overrides for 401(k) savings plans:



Adding a Savings Plan to a Benefit Program



Slide 84


187



Student Notes

Pages Used to Identify Components of a Savings Plan


Benefit Program – Plan Typeand Option

Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable

Benefit Program – Cost Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable

• Use this page to bring the components of a savings plan together:



188



Setting Up the Savings Plan Table Component

To set up the Savings Plan Table component:

1. Select Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table.



Plan Type 40

Benefit Plan 401(K)




Use Special Accumulator 401

Plan Contribution EE Contribution Optional

4. Enter the following information in the Up-To-Threshold Limit (Percent of Earnings) group box within theLimit on Employee Investments group box:


Total Investment 12

Before-Tax 12

After-Tax 12

Employee YTD Earning Threshold (employeeyear-to-date earning threshold)

0

Note. Leave the fields blank in the Over-Threshold Limit (Percent of Earnings) group box and the Rulesfor Highly Compensated Employees Investments group box.

5. Enter the following information in the Investments group box:

Page Element Row 1 Row 2

Investment Option 1 2

Description Mutual Fund High Technology Stocks


193



Including the Savings Plan in the Executive Benefit Program

To include the savings plan in the executive benefit program:

1. Select Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit Program Table.

2. Enter the benefit program X.

3. Select Correct History and click Search.


5. Insert a row on the Plan Type scroll area and enter the plan type 40.




Benefit Plan 401(K)

Deductn Cd (deduction code) 401

7. Access the Cost page, and enter the following information:


Cost Type Price

Calc TblID (calculation table ID) C3

Note. The only data that you can enter on the Benefit Program Table - Cost page is the calculation tableID after you select the cost type of Price. The amount will be determined by the employee's election.

8. Click Save.



196



Review


• You do not define rate tables for savings plans because premium amounts are not required.

• You use the Savings Plan Table component to define employee contribution limits and employer matchingrules.

• You use the Service Step table to define employer matching based on the number of months that anemployee has served.

• You can define plan limits based on your organization's rules and based on federal regulations.

• The Age-50 Catch-up process identifies employees who are age 50 or over and generates the savingsmanagement pages used to monitor their catch-up contributions.

• You can add savings plans to any benefit program.

Slide 86

Student Notes




Savings plan components. PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base

Benefits, "Building Base Benefit Programs"

Contribution limits and employer matchingoptions.

PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base


Employer matching based on length ofservice, and Rules for 401(a), 402(g),403(b), 415(c), and 457 limits.


Benefits, "Setting Up Core Human Resources Base Benefits Tables"


197



Lesson 8

(CAN) Setting Up Pension Plans

Objectives


• Identify pension plan components.

• Set up pension plans.

• Add a pension plan to a benefit program.

Slide 88

199



Identifying Pension Plan Components

Components of a Pension Plan

This diagram illustrates the components that we will use to define a pension plan:

Slide 89

Student Notes

How to Define a Pension Plan

A company can offer pension plans under specific conditions to enable its employees to receive moneyfollowing their retirement from service or to enable surviving dependents to receive money upon anemployee's death.

Before you define a pension plan in PeopleSoft HRMS, determine which tables are needed and then defineeach one with the specific information about your pension plan.

(CAN) Setting Up Pension Plans Lesson 8

200



Student Notes

Page Used to Define Pension Plans


Pension Plan Table 1 Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan TableCAN

Use this page to define pension plans offered by your employers, and to define the employee and employercontribution percentages:

Pension Plan Table 1 page (1 of 2)


202



Pension Plan Table 1 page (2 of 2)

Note. When you define a pension contribution as a before-tax deduction, the system calculates the amount todeduct before it performs the normal tax calculation.

Lesson 8 (CAN) Setting Up Pension Plans

203



Student Notes

Page Used to Identify Pension Plan Components


Plan Type and Option Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable

Use this page to link the parts of a pension plan:



205



Activity 7: (CAN) Setting Up an Executive Pension Plan



2. Set up the Pension Plan table.

3. Update the Benefit Program table.

Slide 92

Activity Overview

Employees can contribute 4 percent up to YMPE and 6 percent over YMPE in this pension plan. Thecompany matches this contribution by 50 percent.

You will enter the following data in the appropriate tables.

Table Data

Deduction PENS

Provider/Vendor CANKCVNB

Benefit Plan PENX

Pension Plan (plan-specific) PNX


206



Setting Up the Pension Plan Table

To set up the Pension Plan table:

1. Select Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table CAN.



Plan Type 80

Benefit Plan PEN




Use Special Accumulator Instead of Gross KC1

Based on YTD (based on year to date) Cleared

Pension Plan Type MoneyPurch

Voluntary Contributions Allowed Cleared

Coordinate with CCP Cleared

Plan Registration # ALB789784

4. In the Contribution Percent group box, enter the following information:


Rate Type None

Contribution & Up to YMPE Employee% 4%

Contribution & Up to YMPE Employer % 2%

Contribution & Over YMPE Employee% 6%

Contribution & Over YMPE Employer% 3%

5. Click Save.


208



Setting Up the Benefit Program Table

To set up the Benefit Program table:


2. Enter the benefit program X .

3. Select Correct History, and click Search.


5. Insert a row in the Plan Type scroll area, and enter 80 in the Plan Type field.

6. Scroll to the option section and enter the following information on the Eligibility tab:


Optn Type O

Benefit Plan PEN

Deduction Cd (deduction code) KCPENS

7. Click Save.



209



Identifying Leave Plan Components

Components of a Leave Plan

This diagram illustrates the components that we will use to create a leave plan:

Slide 96

Student Notes

Defining Leave Plans

A company can offer leave plans to enable its employees to take time off without losing pay for reasons suchas vacations, health, or personal business.

Before defining a leave plan in PeopleSoft HRMS, determine which tables are needed and then define each

one with specific information about your leave plan.

Setting Up Leave Plans Lesson 9

212



Student Notes

Page Used to Set Up Leave Time Accrual


Leave Plan Table Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Leave Plan Table

Use this page to define how your leave time will accrue, to identify accrual processing information and firstyear award values, and to identify your leave accrual rates and service bonus values:

Leave Plan Table (1 of 2)


214



Leave Plan Table (2 of 2)

Creating a Leave PlanEach plan has only one maximum leave balance and one maximum leave carryover. If you need any otheroption, you might need to either set up a new plan or customize the software.

Manual accrual processing fields are for informational purposes and do not initiate automatic processes.

Lesson 9 Setting Up Leave Plans

215



Defining a Leave Plan (continued)

Accrual Processing

This table lists which accrual rate units to select based on the award frequency of your leave plan:

Accrual Rate Units Award Frequency

Hours per Hour Every accrual run.

Hours per Month First run of the month.

Hours per Pay Period (USF) First run of the pay period (USF).

Hours per Week First run of the week.

Hours per Year First run of the year.

Slide 98


216



Defining a Leave Plan (continued)

First Year Accrual Process Setup

This table provides an example of how newly hired employees accrue vacation hours based on the month ofhire for a leave plan that awards vacation hours per year:

Employment Month Vacation Hours Earned Eligibility Month

1 72 3

2 72 4

3 72 5

4 56 6

5 56 7

6 56 8

7-12 0 NA

Slide 99

Student Notes

Calendar Year Basis

Note. The system bases leave on a calendar year. If you require leave to be set up otherwise, you will need tocustomize the software.


217



Establishing Earning Codes for Leave Categories

How Earnings are Calculated

This diagram shows the tables from which the earnings calculation process retrieves data:

Slide 100


218



Student Notes

Page Used to Identify Special Processing


Special Process Set Up HRMS, Product Related, Payroll for North America, Compensation andEarnings, Earnings Table

Use the Special Process page to identify which leave plans the earnings code will affect, and to identify whichearnings codes track service hours for your leave plans:

Special Process page


219



Adding a Leave Plan to a Benefit Program



Slide 101


220



Activity 8: Setting Up a Vacation Leave Plan



2. Set up the Leave Plan table.

3. Set up the Benefit Program table.

Slide 102

Activity Overview

The vacation leave plan includes 12 days per year, gradually increasing to 18 days after 4 years.

You will enter the following data in the appropriate tables:

Table U.S. Data Canada Data

Provider/Vendor USAKUGBI CANKCVNB

Benefit Plan VAC VAC

Leave Plan (plan specific) VAC VAC

The values in the Provider/Vendor table have already been set up in the system.


222






To set up the Benefit Plan table:


2. Select the Add a New Value link, and enter the following information:


Plan Type Vacation Vacation





Description Executive Vacation Leave Plan Executive Vacation Leave Plan

Short Description Vacation Vacation

SetID SHARE SHARE

Vendor ID USAKUGBI CANKCVNB


Default Deduction Code Blank Blank

4. Accept the remaining default values on the page.

5. Click Save.


223



4. Expand the Manual Accrual Processing section, and enter the following information:


Pay in Lieu of Time Off Cleared Cleared

Pay at Termination Selected Selected

Percent to Pay at Termination Cleared Cleared

Allow Negative Balance Selected Selected

Max Negative Hours Allowed(maximum negative hours allowed)

40 40

5. In the Accrual Rate Values scroll area, enter the following information:


After Service Interval 0 0

Accrue Hours At 8 (Hours per Month) 8 (Hours per Month)

6. Click the Insert button to add additional Accrual Rate Values rows with the following information:






7. Click Save.


225



Setting Up the Benefit Program Table

To set up the Benefit Program table:


2. Enter the benefit program X.



5. Insert a row in the Plan Type scroll area, and enter the plan type 51.





Deduction Cd (deduction code) Blank Blank

7. Click Save.



226



Review


• Leave plans do not contain deductions because leave is accrued.

• You access the Leave Plan table from the Base Benefits menu.

• You define earnings codes to increase or reduce leave balances.

• You can add a leave plan to any benefit program.

Slide 103

Student Notes



Topic See

Leave plan components PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base


Leave Plan Specific table PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base


Earnings codes for leave categories PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base Benefits, "Managing Leave Plans"

PeopleSoft Enterprise Payroll for North America 9.0 PeopleBook ,"Defining Earnings Codes and Earnings Programs"


227



Lesson 10

Setting Up Flexible Spending Accounts

Objectives


• Identify the components of flexible spending account (FSA) plans.

• Create and define FSA plans.

• Add FSA plans to a benefit program.

Slide 105

229



Identifying the Components of Flexible Spending Account Plans

Components of the FSA Benefit Plan

This diagram illustrates the components that we will use to create a flexible spending account plan:

Slide 106

Student Notes

Identifying the Delivered Plan Types for FSAs

The delivered plan types for FSAs are:

• (USA) Flexible Spending Health (60).

• (USA) Flexible Spending Dependent Care (61).

• (CAN) Flexible Spending Health (65).

• (CAN) Retirement Counseling (66).

• (USA) Healthcare Savings Account (67).

Setting Up Flexible Spending Accounts Lesson 10

230



Student Notes

Page Used to Identify Contribution Frequency and Employer Contributions


Spending Accounts

FSA Admin Config

• Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA BenefitsTable, Spending Accounts

• Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA BenefitsTable, FSA Admin Config

Use this page to identify a contribution frequency and employer contributions:

Spending Accounts page

Use this page to configure FSA administration:


232



FSA Admin Config page

Using Balance IDsConsider Balance IDs as buckets into which the system places balances. The SetID and Balance ID specifiedon this page indicate the bucket name that will be used to gather FSA-calculated deduction information. The bucket starts and stops based on the dates specified on the Balance ID table in Payroll. Example: CY January1 - December 31. The balances clear and start over on January 1 of each year.

Lesson 10 Setting Up Flexible Spending Accounts

233



Creating and Defining FSA Plans (continued)

Deduction Calculations

This table describes how deductions are calculated using PeopleSoft Payroll for North America andPeopleSoft Payroll Interface:

Product (USA) Calculation (CAN) Calculation

PeopleSoft Payroll for North America

Deduction Amount = (Annual Pledge - YTDBalance) ÷ Unconfirmed On-Cycle PayPeriods Remaining in the Balance Year.

Deduction Amount = (Annual Pledge*or Employer Contribution or both -YTD Balance) ÷ Pay PeriodsRemaining in the Balance Year.

*Applies only to credits with BenefitsAdministration.

PeopleSoft Payroll Interface Deduction Amount = (Employee Contribution× FSA Contribution Frequency) ÷ DeductionFrequency

Deduction Amount = EmployerContribution × FSA ContributionFrequency ÷ Deduction Frequency

Slide 108

Student Notes

Balance IDs

Note. Use Balance ID on the FSA Spending Accounts page to determine the limits of the "Balance Year" andto determine what to use as the end date (such as pay end date or check date). However, if the EmployeeContribution Override field has been populated on the employee's election record, then the calculation is thesame as used in the PeopleSoft Payroll Interface system.


234



Adding FSA Plans to a Benefit Program



Slide 109


235



Activity 9: Setting Up Flexible Spending Accounts



2. Set up the FSA Benefit Plan table.

3. Add the new FSA plan to the executive benefit program.

Slide 110

Activity Overview

Data is already in the Deduction and Provider/Vendor tables. You will set up the remaining tables for an FSA plan.

(USA) Notes for Activity

You will set up a dependent care FSA to pay up to 5,000 USD in dependent care expense on a before-tax basis. Then add the plan to the executive benefit program. Deduction and vendor information is already provided.

(CAN) Notes for Activity

You will set up a health care FSA whereby the employer offers up to 750 CAD on health-related items thatare not covered by the basic medical plan. Then add the plan to the executive benefit program. Deduction andvendor information is already provided.


237



Identifying the Pages Used to Hire an Employee

Hire Employee Components

The pages that you use to hire employees are included in these components:

• Add a Person

• Job Data

Use the Benefit Program Participation page to enroll an employee in a benefit program.

Slide 114

Student Notes

Hire Employee Pages

Use these pages of the Add a Person component to enter personal information for a new employee:

• Biographical Details

• Contact Information

• Regional

• Organizational Relationships

Use these pages of the Job Data component to enter job information for a new employee:

• Work Location

• Job Information

• Job Labor

• Payroll

• Salary Plan

• Compensation

Adding New Employees, Dependents, and Beneficiaries Lesson 11

244



Viewing Job-Related Information for an Employee

Reviewing Employee Eligibility

Use the employee data summary to view an employee's:

• Personal information.

• Job information.

• Significant dates.

Slide 115

Lesson 11 Adding New Employees, Dependents, and Beneficiaries

245



Setting Up Dependent and Beneficiary Data

Dependent Relationships

This diagram shows how you use the Dependent Relationship page to group relationships by covered persontype:

Slide 116

Student Notes

Page Used to Define Dependent Relationships


Dep. Relationship (dependentrelationship)

Set Up HRMS, Product Related, Base Benefits, Dependent Relationships Table

Use this page to define relationships that qualify as dependents according to your organization rules:

Dep. Relationship page


247



Setting Up Dependent and Beneficiary Data (continued)

Entering Dependents and Beneficiaries

Entering dependent and beneficiary data ensures that you are able to:

• Simplify benefit enrollments for dependents and beneficiaries.

• Process claims quickly and correctly.

• Track court-ordered benefit requirements.

Slide 117


248



Student Notes

Pages Used to Record Dependent/Beneficiary Information


Update Dependent/Beneficiary - Name

Benefits, Employee/Dependent Information, Update Dependent/Beneficiary

Update Dependent/Beneficiary -Address

Benefits, Employee/Dependent Information, Update Dependent/Beneficiary,Address

Update Dependent/Beneficiary –Personal Profile

Benefits, Employee/Dependent Information, Update Dependent/Beneficiary,Personal Profile

• Use this page to record the name of the employee's dependents and beneficiaries:

Update Dependent/Beneficiary - Name page

• Use this page to identify the address for your dependents and beneficiaries:


249




Court-Ordered Benefit Flags

A system-generated check box is available that indicates whether court orders have been established fordependents and beneficiaries on these enrollment pages:

• Health Benefits

• Life and AD/D Benefits

• Savings Plans

• Pension

Slide 118

Student Notes

Page Used to Identify Riders/Orders Information


Dependent/Beneficiary Riders Click the Riders/Orders link on the Personal Profile page.

Use this page to enter court-ordered benefit information:


251




Tracking Additional Dependent and Beneficiary Data

In addition to tracking personal benefit information, Base Benefits enables you to:

• Enter informational comments about dependents and beneficiaries.

• View a summary list of an employee's dependents.

Slide 119


252



• Use this page to view a list of the employee's dependents and/or beneficiaries and their relationships to theemployee:

Dependent/Benef. page


254



Activity 10: Adding Dependent and Beneficiary Data

In this activity, you will review the activity overview and enter dependent and beneficiary data.

Slide 120


255



Activity Overview

In the remaining activities in this class, you will be working with three employees who have been hired atGlobal Business Institute (GBI).

The employee IDs for the employees that you will work with are:

(USA) Employees Employee ID (CAN) Employees Employee ID

Patrick Kelly KULM01 Tyler Jackson KCLM01

Melissa Jackson KULN01 Jennifer Phillips KCLN01

Brevin James KULO01 Jon Pierre KCLO01

In this activity, you'll add the dependent and/or beneficiary information for (USA) Patrick, or (CAN) Tyler.

(USA) For Patrick, use the data in this table:

Dependent/Beneficiary Personal Data Relationship to Employee Address

Anne

DOB:October 11, 1964

Married : October 1, 2002

Spouse Same as employee

Tyler

DOB: May 5, 1991

Child Same as employee

Gilbert

DOB:September 28, 1980

Other Child 645 Bennett Street

Luzerne, PA 18704

(CAN) For Tyler, use the data in this table:

Dependent/Beneficiary Personal Data Relationship to Employee Address

Anne

DOB:October 11, 1964

Married : October 1, 2002

Spouse Same as employee

Tyler

DOB: May 5, 1991

Child Same as employee

Gilbert

DOB:September 28, 1980

Other Child 645 Bennett Street

Calgary, AB T2S 0B8

Dependent/Beneficiary information for Melissa, Brevin, and Jon has been entered for you. You will view the


256



dependents already created.

In subsequent activities, you will enroll the first employee in the benefit plans that you have set up andcalculate the employee's deductions, and you will maintain enrollments for all three employees.


257




Gender Female Female

Marital Status Married Married

Date October 1, 2002 October 1, 2002

10. Access the Name page, and insert a row in the Dependent/Beneficiaries group box.



Dependent/Beneficiary ID 02 02


Format type English English

12. Click the Edit Name link, and on the Edit Name page, enter the following information:

Page Element (USA) Value or Status (CAN Value or Status

First Name Patrick Tyler

Last Name Kelly Jackson

Suffix Junior Junior

13. Click OK.

14. Access the Address page, and enter the effective date of January 1, 2003.

15. Select the Same Address as Employee check box.


259



22. Click the Edit Address link, and on the Edit Address page, enter the following information:


Address 1 645 Bennett Street 645 Bennett Street

City Luzerne Calgary

State/Province PA AB

Postal 18704 T2S 0B8

23. Click OK.

24. Access the Personal Profile page, and enter the following information:


Date of Birth September 28, 1980 September 28, 1980


Relationship to Employee Other Relative Other Relative

Dependent Beneficiary Type Beneficiary Beneficiary

Gender Male Male

Marital Status Single Single

25. Click Save.


261



(USA) Results

To view the dependent and beneficiary data that you added for Patrick, select Benefits, Employee/DependentInformation, Review Dep/Ben Summary.

Your results should look like this:

To view dependent and beneficiary data for Melissa, select Return to Search, enter the employee ID KULN01,and click Search.


To view dependent and beneficiary data for Brevin, select Return to Search, enter the employee ID KULO01,and click Search.



262



(CAN) Results

To view the dependent and beneficiary data for Tyler, select Benefits, Employee/Dependent Information,Review Dep/Ben Summary.


To view dependent and beneficiary data for Jon, select Return to Search, enter the employee ID KCLO01, andclick Search.




263



Review


• You can enroll a new employee and dependents in benefits using the same component that you used to hire

the employee.

• You can use the Employee Data Summary page to obtain the data used to determine benefits coverageeligibility for an employee.

• You can view dependent and beneficiary information for the entire family on the Dependent/Benef. page.

Slide 121

Student Notes



Topic See

Job Related Information for an Employee PeopleSoft Enterprise Human Resources 9.0 PeopleBook , "Manage BaseBenefits," Enrolling Participants

Dependent and Beneficiary Data PeopleSoft Enterprise Human Resources 9.0 PeopleBook , "Administer

Workforce," Entering Additional Data in Human Resources Records

PeopleSoft Enterprise Human Resources 9.0 PeopleBook , "Manage BaseBenefits," Entering Dependent and Beneficiary Information


264



Lesson 12

Enrolling Employees

Objectives


• Assign employees to benefit programs.

• Enroll employees in benefit plans.

• View employee benefit enrollments.

• Override deduction information.

Slide 123

265



Assigning Employees to Benefit Programs

Using Benefit Programs

This diagram shows the plans that employees can enroll in after they have been assigned to our benefit program:

Slide 124

Enrolling Employees Lesson 12

266



Student Notes

Page Used to Associate Employees to Benefit Programs


Benefits Program Participation Benefits, Enroll in Benefits, Assign to Benefit Program

Use this page to associate an employee with a benefit program:

Benefit Program Participation page

Note. This page is also part of the Hire and Job Data components but can be accessed through Benefits,Enroll in Benefits

Lesson 12 Enrolling Employees

267



Activity 11: Assigning Employees to Benefit Programs

In this activity, you will review the activity overview and modify an employee's benefit program.

Slide 125

Activity Overview

In this activity, you will change an employee's benefit program. When hired, the employee was enrolled in a benefit program, but now qualifies for the executive benefit program.

Use the information in this table:

Employee Employee IDBenefit Program Enrolled in atHire

(USA) Patrick Kelly KULM01 KL2

(CAN) Tyler Jackson KCLM01 KL4



Modifying an Employee's Benefit Program

To modify an employee's benefit program:

1. Select Benefits, Enroll in Benefits, Assign to Benefit Program.

2. Enter the employee's ID, and click Search

3. On the Benefit Program Participation page, insert a new effective-dated row.

4. Enter a date of January 1, 2003.

5. Enter X in the Benefit Program field.

6. Click Save.



268



Enrolling Employees in Benefit Plans

Health Benefits

Employees assigned to a benefit program can enroll in any of the health plans within the program, as shownin this diagram:

Slide 126


269



Student Notes

Page Used to Enroll Employees in Health Plans


Health Benefit Elections Benefits, Enroll in Benefits, Health Benefits

Use this page to enroll employees and dependents in health plans such as medical, dental, and vision:

Health Benefit Elections (1 of 2)

Health Benefit Elections (2 of 2)

Validating Covered Dependents

The list of covered dependents is validated against the coverage code and against the dependent age limitsestablished on the benefit program.


270



Enrolling Employees in Benefit Plans (continued)

Example: Deduction Calculation Based on Pay Calendar

The deduction begin date works with the pay period end date from the pay calendar to determine if thededuction is taken during the payroll process, as shown in this table:

Pay Calendar Table Field Value Deduction Begin Date Deduction Taken

Pay Period Begin Date 01/01/2000 01/01/2000 Yes

Pay Period End Date 01/15/2000 01/15/2000 Yes

Paycheck Issue Date 01/20/2000 01/16/2000 No

Slide 127


271




Example: Deduction Calculation Based on Pay Calendar

If the deduction begin date is after the pay period end date and coverage is waived or terminated, the benefitdeduction is also considered active and is taken, as shown in this table:

Pay Calendar Table Field Value Deduction Begin Date Deduction Taken

Pay Period Begin Date 01/01/2000 01/01/2000 No

Pay Period End Date 01/15/2000 01/15/2000 No

Paycheck Issue Date 01/20/2000 01/16/2000 Yes

Slide 128


272




Life and AD/D Benefits

Employees assigned to a benefit program can enroll in any of the life and accidental death anddismemberment (AD/D) plans within the program, as shown in this diagram:

Slide 129


273



Student Notes

Page Used to Enroll Employees in Life and AD/D Plans


Life/ADD Elections Benefits, Enroll in Benefits, Life and AD/D Benefits

Use this page to enroll employees in life plans, such as life, supplemental life, and AD/D, and to identify the beneficiaries:

Life/ADD Elections (1 of 2)

Life/ADD Elections (2 of 2)


274



Note. Be sure that hard copies of critical records exist for legal purposes. Some companies allow onlinesignatures, but this is an exception. Most providers require hard-copy records.For life insurance, the system validates against the Minimal Spousal Allocation % field on the Benefit PlanTable page when you update beneficiary information in Base Benefits.


275




Disability Benefits

Employees assigned to a benefit program can enroll in any of the disability plans within the program, asshown in this diagram:

Slide 130


276



Student Notes

Page Used to Enroll Employees in Disability Benefit Plans


Disability Benefit Benefits, Enroll in Benefits, Disability Benefits

Use this page to enroll employees in disability plans, such as short-term disability and long-term disability:

Disability Benefit page


277



Savings Plan Elections (2 of 2)


280



• Use this page to enroll employees in Canadian pension plans:

Pension Plan Elections page


281




Leave Plans

Employees assigned to a benefit program can enroll in any of the leave plans within the program, as shown inthis diagram:

Slide 132


282



• (CAN) Use this page to enroll employees in Canadian leave plans.

Leave Plans page


284




FSA Benefits

Employees assigned to a benefit program can enroll in any of the flexible spending account (FSA) planswithin the program, as shown in this diagram:

Slide 133


285



Student Notes

Pages Used Enroll Employees in FSA Benefits:


FSA Benefits (USA) Benefits, Enroll in Benefits, USA-FSA Benefits

FSA Benefits (CAN) Benefits, Enroll in Benefits, CAN-FSA Benefits

• (USA) Use this page to record employee participation in flexible spending accounts, such as health care anddependent care, which allows employees to contribute pretax dollars to a fund from which they can laterdraw to pay eligible expenses, including health care and dependent care:

Spending Accounts page (USA)


286



• (CAN) Use this page to record employee participation in flexible spending accounts, such as health careand retirement counseling:

Spending Accounts page (CAN)


287



Viewing Employee Benefit Enrollments

Reviewing Benefit Summaries

After you enroll employees in their elected benefit plans, you can view a summary of their currentenrollments and deductions on these pages:

• Benefit Enrollment Summary

• Benefit Deduction Summary

Slide 134


288



Student Notes

Pages Used to View Benefit Summaries


Benefit Enrollment Summary Benefits, Review Employee Benefits, Current Benefits Summary

Benefit Deduction Summary Benefits, Review Employee Benefits, Current Benefits Summary

• Use this page to view an employee's current enrollments:

Benefit Enrollment summary page


289



• Use this page to view an employee's current benefit deductions:

Benefit Deduction Summary page


290



Viewing Employee Benefit Enrollments (continued)

Base Benefits Consistency Audit Report

Run the Base Benefits Consistency Audit report to list the following types of errors:

• Employees without employment or job records.

• Employees less than 16 years old.

• Employees and spouses (or other dependents) who both elect health benefits.

• Employees with over-age dependent coverage or unusual dependents.

• Employees with incorrect health plans set up on the Benefit Program page.

Slide 135

Student Notes

Page Used to Audit Benefits


Base Benefits ConsistencyAudit

Benefits, Reports, Audits, Base Benefit Consistency Audit

Use the Base Benefits Consistency Audit page to run the Base Benefits Consistency Audit report.


291



Activity 12: Enrolling Employees


• Enroll an employee and dependents in health plans.

• Enroll an employee and dependents in other benefit plans.

Slide 136

Activity Overview

In this activity, you enroll the employee in the following plans:

• Medical

•

Dental

• Life insurance

• Long-term disability

• (USA) Savings

• (CAN) Pension

• Vacation

• (USA) FSA

You also enroll the employee's three dependents in medical and dental plans.

Choose the appropriate employee name and ID from this table:

Employee ID

(USA) Patrick Kelly KULM01

(CAN) Tyler Jackson KCLM01


292





Enrolling an Employee and Dependents in Health Plans

To enroll an employee and dependents in health plans:

1. Select Benefits, Enroll in Benefits, Health Benefits.

2. Enter the employee ID, and click Search.

3. On the Health Benefit Elections page, enter the following information:


Plan Type 10 10

Coverage Begin Date October 1, 2003 October 1, 2003

Deduction Begin Date October 1, 2003 October 1, 2003

Coverage Election: Elect Elect

Election Date October 1, 2003 October 1, 2003

Benefit Plan BSM BSM

Coverage Code 4 4

Health Provider ID 12345 NA

Previously Seen Selected NA

4. Click the Enroll All dependents button.

5. (USA) Enter the Health Provider ID of 12345 and select the Previously Seen checkbox for eachdependent.


293



6. Insert a row in the Plan Type scroll area, and enter the following information:


Plan Type 11 11

Coverage Begin Date October 1, 2003 October 1, 2003

Deduction Begin Date October 1, 2003 October 1, 2003

Coverage Election Elect Elect



Coverage Code 4 4

Health Provider ID Blank Blank

Previously Seen Cleared Cleared

7. Click the Enroll all Dependents button.

8. Click Save.


294



Enrolling an Employee and Dependents in Other Benefit Plans

To enroll the employee and his dependents in the remaining benefit plans:

Life and AD/D Plan Enrollment

To enroll the employee and dependents in a life insurance plan:

1. Select Benefits, Enroll in Benefits, Life and AD/D Benefits.

2. Enter the employee ID, and click Search.

Note. The system should open the Life/ADD Elections page with the employee's name and ID.

3. On the Life/Add Elections page, enter the following information:


Plan Type 20 20

Coverage begin date October 1, 2003 October 1, 2003

Deduction begin date October 1, 2003 October 1, 2003



Benefit Plan 2X 2X

4. Click the Assign All Beneficiaries button.

5. On the Spouse row, enter the Percent of Benefit of 60.

6. On the Child row, enter the Percent of Benefit of 20.

7. On the Other Relative row, enter the Percent of Benefit of 20.

8. Click the Update Totals button.

9. Click Save.


295



Disability Plan Enrollment

To enroll the employee in a disability plan:

1. Select Benefits, Enroll in Benefits, Disability Benefits.




Plan Type 31 31






3. Click Save.


296



(USA) Savings Plan Enrollment

To enroll the employee in a savings plan:

1. Select Benefits, Enroll in Benefits, Savings Plans.


2. On the Savings Plan Elections page, enter the following information:


Plan Type 40

Coverage begin date October 1, 2003

Deduction begin date October 1, 2003

Participation Election Elect

Election Date October 1, 2003

Benefit plan 401(K)

Before Tax Investment

Percent of Earnings

6

After Tax Investment

Percent of Earnings

2

3. In the Dependent/Beneficiaries scroll area, enter the following information:


ID 01

Beneficiary Percentage 100

4. Click the Update Totals button.

5. In the Investments scroll area, enter the following information:


Investment Option 2

Investment Percent 100

6. Click Save.


297



(CAN) Pension Plan Enrollment

To enroll the employee in a pension plan:

1. Select Benefits, Enroll in Benefits, CAN-Pension Plan.




Plan Type 80

Deduction begin date October 1, 2003

Participation Election Elect


Benefit Plan PEN

3. Click Save.

(USA) Leave Plan Enrollment

To enroll the employee in a leave plan:

1. Select Benefits, Enroll in Benefits, Leave Plans.




Plan type 51

Effective Date October 1, 2003

Coverage Election Elect


Benefit plan VAC

3. Click Save.


298



(CAN) Leave Plan Enrollment

To enroll the employee in a leave plan:

1. Select Benefits, Enroll in Benefits, Leave Plans - CAN/INTL.




Plan type 51

Effective Date October 1, 2003



Benefit plan VAC

3. Click Save.

(USA) FSA Plan Enrollment

To enroll the employee in a flexible spending account:

1. Select Benefits, Enroll in Benefits, Spending Accounts.



Play Type 61

Coverage Begin Date October 1, 2003

Deduction Begin Date October 1, 2003


Benefit Plan DCAR

Annual Pledge 1200

Empl Contribution 100

3. Click Save.


299



Overriding Deduction Information

Overriding Deduction Processing

You can override:

• The frequency in which a deduction is taken.

• Maximum arrears payback amount.

Slide 137

Student Notes

Page Used to Override Deduction Processing:


Benefit Arrears/FrequencyOvrd

Benefits, Enroll in Benefits, Set Max Arrears/Frequency Ovrd

Use this page to override deduction processing for a specific employee:

Note. This page is not effective-dated. Changes that you make here remain in effect until you make otherchanges.


301



Review


• Employees are first associated with a benefit program, and then enrolled in plans that belong to that

program.

• You can enroll an employee in multiple plans (for example, medical, dental, and vision) in the samecategory using the same page. You do not have to save between enrollments.

• You can view employee enrollment information using summary pages or reports.

• You can override the frequency in which a deduction is taken or the maximum arrears payback amount.

Slide 138

Student Notes



Topic See

Benefit program assignment and benefit plan enrollment

PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base Benefits, "Enrolling Participants"

Employee benefit enrollment review PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base

Benefits, "Reviewing Enrollments and Benefit Calculations"


302



Lesson 13

Calculating Deductions

Objectives


• Set up tables used to calculate deductions.

• Calculate deductions.

• View calculated deductions online.

• Confirm deduction amounts.

Slide 140

303



Setting Up Tables Used to Calculate Deductions


This table describes the tables that the system uses when calculating deductions:

Table Details

Installation Select Payroll for North America or Payroll Interface to specify which process thesystem uses when calculating deductions.

Balance ID Specify start and end dates for each type of balance year (calendar, fiscal, or any other period) that you set up.

Pay Calendar Define a pay calendar for every pay group to determine employee benefit costs foreach pay frequency.

Pay Run Define pay run IDs and associate them with one or more pay calendars.

Slide 141

Calculating Deductions Lesson 13

304



Setting Up Tables Used to Calculate Deductions (continued)

Selecting Payroll Processing on the Installation Table

This diagram illustrates the process flow for calculating benefit deductions:

Slide 142

Student Notes

Page Used to Define Benefit Deduction Calculations Processing


Installation Table-Products Set Up HRMS, Install, Installation Table

Use this page to define which payroll system to use to process benefit deduction calculations:

Installation Table – Products page

Lesson 13 Calculating Deductions

305



Student Notes

Pages Used to Define Months, Quarters, and Years for Maintaining Earning Balances


Balance ID Table 1• Set Up HRMS, Product Related, Payroll Interface, Payroll, Balance ID Table

• Set Up HRMS, Product Related, Payroll for North America, Payroll ProcessingControls, Balance ID Table

Balance ID Table 2• Set Up HRMS, Product Related, Payroll Interface, Payroll, Balance ID Table

• Set Up HRMS, Product Related, Payroll for North America, Payroll ProcessingControls, Balance ID Table

•

Use this page to view the months and years for which you want to maintain earning balances:

Balance ID Table 1 page


307



• Use this page to view the quarters for which you want to maintain earning balances:

Balance ID Table 2 page

Maintaining Balances

PeopleSoft Payroll for North America enables you to maintain balances (earnings, deductions, etc.), not only by calendar year, but also by fiscal year, benefit year, or any other method. PeopleSoft delivers CY (calendar

year). To create a new balance year type, enter the new year and click the Create button. The system populates both pages.

You specify the start and end dates for each type of balance year that you set up, as well as the quarters, periods, and date ranges for each year. You can update, adjust, and report on balance information by variousyear types.

Note. When defining balances to be maintained, you can create a calendar year or a noncalendar year.

How To Use the Balance ID Table 2 Page

Use the Balance ID Table 2 page to define the actual quarter by year for each balance ID.

If you selected the Bal for Calendar Year check box and clicked the Create button on the Balance ID Table 1 page, the system populates field information for the Balance ID Table 2 page.

If you did not specify a balance type with a calendar year in the Balance ID Table 1 page, you must enter avalue for the Year, Qtr, Period Name, Abbrev, From Period, and Thru Period fields. For each row that youadd after the first, the From Period field is set automatically based on the value in Quarters in a Year.


308




Creating Pay Calendars

This diagram shows that the next step in preparing to calculate payroll benefit deductions is to define your pay calendars:

Slide 144


309



Student Notes

Pages Used to Establish Pay Periods and Create Pay Calendars


Pay Calendar Creation• Set Up HRMS, Product Related, Payroll Interface, Payroll, Create Pay Calendars

• Set Up HRMS, Product Related, Payroll for North America, Payroll ProcessingControls, Create Pay Calendars

Pay Calendar Table• Set Up HRMS, Product Related, Payroll Interface, Payroll, Pay Calendar Table

• Set Up HRMS, Product Related, Payroll for North America, Payroll ProcessingControls, Pay Calendar Table

•

Use this page to create pay calendars automatically:

Pay Calendar Creation page


310



• Use this page to manually create calendars or to attach the pay run IDs to the calendars:

Pay Calendar Table page

Defining Pay Calendars

You use the Pay Calendar Table component to establish pay periods for each pay group. Each entry on a paycalendar corresponds to a specific pay period for a pay group. For example, if you have a weekly pay group,you have fifty-two pay calendars per year.

A pay period is defined by its begin and end dates. The system uses the Pay Period of the Month field inconjunction with the Deduction table to determine when deductions should be taken.


311




Defining Pay Run IDs

This diagram shows the tables from which the system retrieves the data needed to run payroll benefitdeductions:

Slide 145

Student Notes

Page Used to Establish Pay Run IDs


Pay Run Table• Set Up HRMS, Product Related, Payroll for North America, Payroll Processing

Controls, Pay Run Table

• Set Up HRMS, Product Related, Payroll Interface, Payroll, Pay Run Table

Use this page to establish Pay Run IDs:

Pay Run Table page


312



Activity 13: Assigning Pay Calendars


1. Assign pay groups.

2. Verify the creation of pay calendars.

Slide 146

Activity Overview

In this activity, you will correct the pay group assigned to three employees. Use the pay group (USA) KLA or(CAN) 9LA.

Pay calendars that will be used to calculate deductions later in the lesson have already been created.

After assigning the pay group to the employees, verify that the calendars were built for your pay group, forcompany GBI, and year 2004.


313





Assigning Pay Groups

To correct the pay group assigned to our employees:

1. Select Workforce Administration, Job Information, Job Data.

2. Enter the employee ID ([USA] KULM01 or [CAN] KCLM01)

3. Select Correct History, and click search.

4. Access the Payroll page.

5. Enter (USA) KLA or (CAN) 9LA as the pay group.

6. Click Save.

Note. (CAN) Click OK if warning messages are displayed while you complete these steps.

7. Click Return to Search, and enter the employee ID ([USA] KULN01 or [CAN] KCLN01).

8. Click Search.


10. Click Save.

11. Click Return to Search, and enter the employee ID ([USA] KULO01 or [CAN] KCLO01).

12. Click Search.


14. Click Save.


314



Verifying the Creation of the Pay Calendars.

To verify the creation of the pay calendars:

1. Select Set Up HRMS, Product Related, Payroll Interface, Payroll, Pay Calendar Table.



Company GBI GBI

Pay Group KLA 9LA

3. Click Search.

The search results area should contain 12 rows.



315



Activity 14: Creating and Linking the Pay Run ID


1. Create a pay run ID.

2. Link the pay run ID to the pay calendar table.

Slide 147

Activity Overview

To calculate benefit deductions, you must create a pay run ID and link it to the Pay Calendar table. Doing soenables you to identify the pay period for which you are calculating benefit deductions.


316





Creating a Pay Run ID

To create a pay run ID:

1. Select Set Up HRMS, Product Related, Payroll Interface, Payroll, Pay Run Table.

2. Select the Add a New Value link.

3. Enter 12-31-04 as the pay run ID.

4. Click Add.

5. Enter Monthly pay for Dec as the description.

6. Click Save.

Linking the Pay Run ID to the Pay Calendar Table

To link the pay run ID to the Pay Calendar table:

1. Select Set Up HRMS, Product Related, Payroll Interface, Payroll, Pay Calendar Table.

2. Click Clear.



Company GBI GBI

Pay Group KLA 9LA

Pay Period End December 31, 2004 December 31, 2004

4. Click Search.


6. Click Save.


317



Results

To verify that the pay calendar is linked to the pay run ID:

1. Select Set Up HRMS, Product Related, Payroll Interface, Payroll, Pay Run Table.


3. Click Search.

4. Verify your pay calendar data with the information below:


Company GBI GBI

Pay Group KLA 9LA

Pay Period End Date December 31, 2004 December 31, 2004



318




Running the Process

The following table describes the differences between employee- and plan-level changes:

Level of Change Example Action

Employee Level Personal data, benefits enrollment pages.

Recalculate only where needed.

Plan Level Rate table, calculation rules. Recalculate all.

Slide 148


319



Student Notes

Page Used to Calculate Deductions For Payroll Interface


Deduction Calculation Payroll Interface, Pay Period Deductions, Calculate Deductions

Use this page to calculate deductions when using PeopleSoft Payroll Interface:

Deduction Calculation page

Note. This process is run each pay period and can be run as many times as necessary to ensure that valid datahas been generated.

Running the Calculation Process

The first time that you calculate deductions for a pay period, everyone in the group is calculated. If you needto run subsequent calculations for the same pay period, you need to consider whether any employee- or plan-level changes took place.

Page Element Use

Only Calculate Where Needed Select to process deductions for employees who:

• Were not yet calculated this pay period.

• Were calculated but for whom errors occurred during the calculation process.

• Had benefit or job changes since the last deduction calculation for the payperiod.

(Re) Calculate All Select to calculate deductions for all eligible employees. Select this option onlyif you've made table changes that affect the deduction calculation, such as benefit premium adjustments on the benefits tables.


320



Activity 15: Calculating Deductions in PeopleSoft PayrollInterface

In this activity, you will review the activity overview and run the Deduction Calculation process.

Slide 149

Activity Overview

In this activity, you will run the Deduction Calculation process for the employee that you previously enrolled,and then verify the employee's calculated deductions.


321





Running the Deduction Calculation Process

To run the deduction calculation process:

1. Select Payroll Interface, Pay Period Deductions, Calculate Deductions.

2. Enter BEN as the Run Control ID.

3. Click the Add a New Value link.

4. Click Add.

5. On the Deduction Calculation page, enter the Pay Run ID 12-31-04.

6. Click Save.

7. Click Run.

8. On the Process Scheduler Request page, select PSNT as the server name.

9. Select the Calculate Deductions check box and click OK.

10. Note the process instance number here:___________________.

11. On the Deduction Calculation page, select the Process Monitor link to monitor the status of the process.

12. Click the Refresh button periodically until the system indicates that your process was successful.

After your process has completed successfully, you should determine whether the system generated

messages regarding the deduction calculation process.

13. Select Payroll Interface, Pay Period Deductions, Review Error Messages.



Company GBI GBI

Pay Group KLA 9LA

15. Click Search.

Note. The message "No matching values were found," indicates that the system completed yourcalculation successfully.



322



Viewing Calculated Deductions Online

Viewing an Employee's Deductions

This flow chart illustrates the process of confirming deductions:

Slide 150


323



Student Notes

Page Used to View Calculated Deductions Online


Calculated Deductions Payroll Interface, Pay Period Deductions, Review Deductions

Use this page to view deduction calculation results:


324



Activity 16: Viewing Calculated Deductions Online


• View the calculated deductions online.

• Review and correct deduction calculation errors.

Slide 151

Activity Overview

In this activity, you will view calculations online and then review and correct errors in the deductioncalculations for your employee if necessary.


325





Viewing Calculated Deductions Online

To view calculated deductions online:

1. Select Payroll Interface, Pay Period Deductions, Review Deductions.



EmplID (employee ID) KULM01 KCLM01

3. Compare your calculated deductions to the results section.

(USA) Results

These are the calculated deductions for employee KULM01 (Patrick):


326



(CAN) Results

These are the calculated deductions for employee KCLM01 (Tyler):


327



Information Navigation

Deduction calculation process Select Payroll Interface, Pay Period Deductions, CalculateDeductions

Deduction calculation results Select Payroll Interface, Pay Period Deductions, ReviewDeductions

Deduction calculation messages Select Payroll Interface, Pay Period Deductions, ReviewError Messages.

Benefit tables Select Set Up HRMS, Product Related, Base Benefits

• Plans and Providers, Benefit Plan Table,Provider/Vendor Table

• Plan Attributes, Plan Specific Tables

• Rates and Rules, Rate Tables and Calculation Rules

•

Program Structure

Deduction tables Select Set Up HRMS, Product Related, North AmericanPayroll, Deductions, Deduction Table

Benefit enrollment data Select Base Benefits, Enroll In Benefits

Personal and job data Select Workforce Administration,

• Personal Information

• Job Information

Compare the activities in the guide with what you have entered in your database. If something does notmatch, make the correction in your database and rerun the process. Don't forget to select (Re) Calculate AllChecks if you make a table-level change.

Continue to troubleshoot the calculations until all of your calculations are correct.



329



Confirming Deduction Amounts

Prerequisites

Before you confirm deductions, you must:

1. Make any necessary modifications to deduction data for this pay period.

2. Run the Deduction or Pay Calculation process.

3. Review the results, make changes, and rerun the Deduction or Pay Calculation process as necessary.

Slide 152

Student Notes

Page Used to Run the Payroll Deduction Confirmation Process


Deduction Confirmation Payroll Interface, Pay Period Deductions, Confirm Deductions

Use the Deduction Confirmation page to run the deduction confirmation process.

Note. Using PeopleSoft Enterprise software, you build an interface that exports the deduction amounts toyour payroll system.


330



Review


• The Pay Calendar table is used to establish pay periods for each pay group. A pay run ID is then associated

to that calendar for processing purposes.

• To run the Deduction and Pay Calculation processes, you enter a pay run ID on the Process Parameterspage.

• You can review calculated deductions for individual employees online.

• The Deduction Confirmation process (for PeopleSoft Payroll Interface) or the Pay Confirmation process(for PeopleSoft Payroll for North America) is run after reviewing and making changes to calculateddeductions.

Slide 153

Student Notes



Topic See

Tables used to calculate deductions PeopleSoft Enterprise Human Resources Application Fundamentals 9.0 PeopleBook , "Setting Up Pay Calendars"

Deduction calculation PeopleSoft Enterprise Payroll Interface 9.0 PeopleBook , "RunningDeductions"

Online view of calculated deductions PeopleSoft Enterprise Payroll Interface 9.0 PeopleBook , "ExchangingData Using Payroll Interface"

Deduction amount confirmation PeopleSoft Enterprise Payroll Interface 9.0 PeopleBook , "Preparing forData Export"


331



Lesson 14

Processing Leave Accruals

Objectives


• Process leave accruals.

• View employee leave accrual balances online.

Slide 155

333



Processing Leave Accruals

When Leave Accrual is Posted

As shown in this table, the system credits an employee's leave accrual balance based on the accrual rate unitdefined for the leave plan:

Accrual Rate Unit Award Frequency

Hours per hour Every accrual run.

Hours per month First run of the month.

Hours per pay period First run of the pay period.

Hours per week First run of the week.

Hours per year First run of the year.

Slide 156

Processing Leave Accruals Lesson 14

334



Student Notes

Page Used to Process Leave Accruals


Leave Accrual Proc (leaveaccrual process)

Benefits, Manage Leave Accruals, Calculate Periodic Accruals

Use this page to set up the operating parameters for an accrual cycle:

Leave Accrual Proc page

Note. The Leave Accrual process processes all employees who are currently enrolled in the selected plan typeand benefit plan. It does not check the employee status of the employee.

Lesson 14 Processing Leave Accruals

335



Viewing Employee Leave Accrual Balances Online

Example of Leave Accrual

This example shows an employee's leave balance calculation for a leave award of 10 hours of leave a month:

Prior accrual process date January 1, 2002

Leave balance 20 hours

Leave used during January 2002 16 hours

Accrual process date February 1, 2002

Leave credited 10 hours

New leave balance 14 hours

Slide 157


336



Student Notes

Page Used to View Employee Leave Accrual Balances


Leave Accrual Balances Benefits, Manage Leave Accruals, Review Accrual Balances

Use this page to view the results of leave accrual processing for an employee:

Leave Accrual Balances page

Note. Balances might change with each payroll run, so if employees inquire about the amount of time thatthey have accrued, let them know that the balances can be different after payroll is run.


337



Activity 17: Running the Leave Accrual Process


1. Run the leave accrual process for your vacation plan.

2. View leave accrual balances.

Slide 158

Activity Overview

In this activity, you will run the leave accrual process for the vacation plan that you set up for your benefit program.


338





Running the Leave Accrual Process for Your Vacation Plan

To run the leave accrual process for your vacation plan:

1. Select Benefits, Manage Leave Accruals, Calculate Periodic Accrual.

2. Enter BEN as the run control ID.

3. Click Search.

4. On the Leave Accrual Proc page, enter the following information:


Company GBI

Plan Type Vacation

Benefit Plan VAC

Accrual Process Date October 31, 2004

5. Click Run.

6. On the Process Scheduler Request page, select PSNT as the server name.

7. Click OK.

8. On the Leave Accrual Proc page, select the Process Monitor link.

9. Note the process instance number here:______________.

10. Click Refresh periodically to determine when your process is completed.


339



Viewing Leave Accrual Balances

To view leave accrual balances:

1. Select Benefits, Manage Leave Accruals, Review Accrual Balances.

2. Enter the employee ID of Patrick ([USA] KULM01) or Tyler ([CAN] KCLM01).

3. Compare your results with the Results section.

(USA) Results

You should see the following data for Patrick:


340



(CAN) Results

You should see the following data for Tyler:



341



Review


• You run a process to calculate leave accruals for employees once per accrual frequency.

• You review leave accruals for an employee through the Benefits menu.

• When viewing the leave accrual balances, note that unprocessed data is updated by the Pay Confirmprocess, and Accrual Balances - Hours is updated by the Leave Accrual Process.

Slide 159

Student Notes

Additional ResourcesThis table lists additional resources that provide more details about the topics that we have discussed in thislesson:


Leave accrual process and online view ofemployee leave accrual balances


Benefits, "Managing Leave Plans"


342



Lesson 15

Changing Benefit Programs andEmployee Enrollments

Objectives


• Run the Benefit Program report.

•

Create a new benefit program using the Benefit Program Clone utility.

• Change employee enrollments in benefit plans.

Slide 161

343



Running the Benefit Program Report

The Benefit Program Report

The Benefit Program report serves as an audit trail for information defined on the Benefit Program table,including:

• Associations between benefit programs and plans.

• Rates.

• Calculation rules.

• Payroll rules.

Slide 162

Student Notes

Page Used to Print the Benefit Program Report


Benefit Program Set Up HRMS, Product Related, Base Benefits, Plan Reports, Benefit Program

Use this page to print information from the Benefit Program Table:

Changing Benefit Programs and Employee Enrollments Lesson 15

344



Activity 18: Running the Benefit Program Report

In this activity, you will review the activity overview and run the Benefit Program report.

Slide 163

Activity Overview

Run the Activity Program Report for the X benefit program.

Lesson 15 Changing Benefit Programs and Employee Enrollments

345




Perform the detailed steps to complete the activity

Running the Benefit Program Report

To generate the Benefit Program report:

1. Select Set Up HRMS, Product Related, Base Benefits, Plan Reports, Benefit Program.

2. Enter BEN as the run control ID.

3. Click Search.

4. On the Benefit Program page, enter the following information:


As of Date January 1, 2003

Benefit Program X

5. Click Run.

6. On the Process Scheduler Request page, enter the following information:


Server Name PSNT

Type WEB

Format PDF

7. Click OK.

8. On the Benefit Program page, select the Process Monitor link.

9. Click Refresh periodically until the run status indicates success.

10. Click the Details link.

11. On the Process Detail page, click the View Log/Trace link.

12. On the View Log/Trace page, click the BEN713 XXX.PDF link.

Adobe Acrobat opens.

13. View the report on line.



346



Creating a New Benefit Program Using the Benefit Program CloneUtility

Cloning a Benefit Program

The Benefit Program Clone utility allows you to:

• Create new benefit programs using an existing program as a template.

• Create a benefit program with a new effective date to maintain history.

• Make minimal changes when creating a new benefit program that is similar to an existing one.

Slide 164


347



Student Notes

Page Used to Clone a Benefit Program


Benefits Clone Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramClone Utility

Use this page to create a new benefit program by using an existing program as a template:

Benefits Clone page

Using the Benefit Program Clone Utility

The Benefit Program Clone utility enables you to create a new benefit program by using an existing programas a template. You might use it to copy programs to make other similar programs. Or, you might copyexisting programs with new effective dates to keep history.

For example, you can create a benefit program for hourly employees, clone it, and then add or remove benefits to make it appropriate for salaried employees.


348



Activity 19: Cloning a Benefit Program


1. Clone the executive benefits program (X).

2. Change the description and options for the new program.

3. Include a dependent life plan in the new program.

4. Include employee and domestic partner coverage in the basic medical plan.

Slide 165

Activity Overview

Global Business Institute (GBI) has decided to make their executive benefits program available to all salariedemployees. They are also adding a dependent life plan to the salaried benefits program.

To define the dependent life plan, you typically enter data into the appropriate tables. However, for thisactivity, the following data has already been entered into the system.

Table (USA) Data (CAN) Data

Deduction KUDLFS KCDLFS

Provider/Vendor USAKUMETLF CANKCLONDN

Benefit Plan Dependent Life/KUDLFS Dependent Life/KCDLFS

Age Graded Rate KA03 KA03

Calculation Rule KAGD KAGD

Note. (CAN) Correct benefit rate table KA03 by replacing USD with CAD in the Currency Code field.

(USA) To add employee and domestic partner coverage to the basic medical plan that is included in the benefit program, add this information:

1. Set up a flat rate code (M12) for employee and domestic partner coverage.

• Total cost of coverage is USD 306.

• The employee portion is USD 237.

2. Modify the basic medical plan to include employee and domestic partner coverage.


349





(CAN) Updating Rate Table KA03

To update rate table KA03:


2. Enter KA03 in the Rate Table ID field.

3. Select Correct History.

4. Click Search.

5. Replace USD with CAD in the Currency Code field.

6. Click Save.

Cloning the Executive Benefits Program

To clone the executive benefits program:

1. Select Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit Program Clone Utility.

2. Select Executive Benefits Program ( X ) from the list.

(Hint: Use the Last link.)

3. Copy this program to the new benefit program S , using the effective date of January 1, 2003.

4. Click the Clone button.


350



Including a Dependent Life Plan in the New Program

To include a dependent life plan in the new program:


2. Enter the benefit program S , select Correct History, and click Search.

3. Select the Benefit Program Table-Plan Type and Option page.

4. Insert a new row in the Plan Type scroll area, and enter the plan type 25.



Optn Type O O

Benefit Plan KUDLFS KCDLFS

Deduction Cd KUDLFS KCDLFS

6. Access the Cost page, and enter the following information for the benefit plan:



Rate Type Age Graded Age Graded

Rate TblID KA03 KA03

Calc TblID KAGD KAGD

7. Click Save.


352



(USA) Including Employee and Domestic Partner Coverage in the Basic Medical Program

To add a rate code of this coverage:


2. Access the Add a New Value page and enter MDP in the Rate Table ID field.

3. Click the Add button and enter this information:




Description Employee + Domestic Partner

Short Description EEDom


Rate per Unit None

Currency Code USD

Total Rate 306

Employee Rate 237

4. Click Save.

To modify the basic medical plan to include employee and domestic partner coverage:


2. Enter S in the Benefit Program field.

3. Select Correct History.

4. Click Search.



353



6. In the Option group box, add a new row on the Eligibility tab and enter this information:



Benefit Plan BSM

Covrg Code (coverage code) 12

Deductn Code (deduction code) MED


8. Scroll to Coverage Code 12 in the Option group box and enter this information:


Cost Type Price


Rate ID MDP

Calc TblID KNON

9. Click Save.



354



Changing Employee Enrollments in Benefit Plans

Updating Employee Enrollments

Remember these essential points:

• All benefits enrollment pages have multiple scroll areas.

• Make sure that you are updating enrollment information for the correct plan type.

• Use the second scroll area (key field is the effective date) to maintain a history of enrollments within a plantype.

Slide 166


355



Activity 20: Updating Employee Benefit Records


1. Assign employees to the salaried benefit program.

2. (CAN) Enroll dependents in the dependent life insurance plan.

3. Enroll a family in the health plan.

4. (USA) Enroll an employee and domestic partner in the medical plan.

5. (CAN) Process family status changes.

Slide 167

Activity OverviewFor updating the employee records, use these employees:

Update (USA) Employees (CAN) Employees

Assigning employees to the salaried benefit program.

• Patrick (KULM01)

• Melissa (KULN01)

• Brevin (KULO01)

• Tyler (KCLM01)

• Jennifer (KCLN01)

• Jon (KCLO01)

(CAN) Enrolling dependents in thedependent life insurance plan.

NA Tyler (KCLM01)

Enrolling a family in the health plan. Brevin (KULO01) Jon (KCLO01)

(USA) Enrolling an employee anddomestic partner in the health plan.

Melissa (KULN01) NA

Processing family status changes. NA Jennifer (KCLN01)


356





Assigning Employees to the Salaried Benefit Program

To assign employees to the salaried benefit program:

1. Select Benefits, Enroll in Benefits, Assign to Benefit Program.

2. Correct the Benefit Program Participation page with the salaried benefits program (S ), effective October1, 2003 for the employees listed in the activity overview.

Note. Remember to save between employees.

(CAN) Enrolling Dependents in the Dependent Life Insurance Plan

To enroll Tyler's dependents in the dependent life insurance plan:


2. Enter Tyler's employee ID and click Search.

3. Insert a row and enter the following information:


Plan Type 25

Coverage Begin Date December 15, 2003

Deduction Begin Date December 15, 2003


Benefit Plan KCDLFS


5. In the Coverage Options group box, enter 2000 in the Flat Amount field.

6. Enter a flat amount of 2,000 CAD for each dependent in the Dependent/Beneficiary section.

7. Click Save.


357



Enrolling a Family in the Health Plan

To enroll (USA) Brevin's family or (CAN) Jon's family in a health plan:


2. Enter the employee ID and click Search.

3. On the Health Benefit Elections page, enter the following information:


Plan Type 10 10

Coverage Begin Date October 1, 2003 December 15, 2003

Deduction Begin Date October 1, 2003 December 15, 2003



Benefit Plan BSM BSM

Coverage Code 4 4

Health Provider ID 12345 Blank

4. Click the Enroll All Dependents button.

5. Click Save.


358



(USA) Enrolling an Employee and Domestic Partner in the Medical Plan

To enroll Melissa and her domestic partner in a medical plan:


2. Enter Melissa's employee ID and click Search.

3. On the Health Benefit Election page, enter the following information:


Plan Type 10



Benefit Plan BSM

Coverage Code 12

Health Provider ID 12345

Previously Seen Selected

4. Click the Enroll All Dependents button.

5. In the Dependent/Beneficiaries scroll area, enter the Health Provider ID12345 and select the PreviouslySeen check box.

6. Click Save.


359



(CAN) Processing Family Status Changes

Jennifer (KCLN01) has gotten married, effective December 10, 2003.

To process family status changes:

1. Select Benefits, Employee/Dependent Information, Update Dependent/Beneficiary.

2. Enter Jennifer's ID and click Search.

3. On the Name page, enter the following information:


Effective Date December 10, 2003

Format Type English

4. Click the Edit Name link, and on the Edit Name page, enter the following information:


First Name Joseph

Last Name Allen

5. Click OK.

6. Access the Address page, enter the effective date of December 10, 2003.


8. Access the Personal Profile page, and enter the following information:


Date of Birth April 18, 1947

Effective Date December 10, 2003

Relationship to Employee Spouse

Dependent Beneficiary Type Both

Gender Male

Marital Status Married

As of December 10, 2003


360



9. Click Save.


11. Enter Jennifer's employee ID and click Search.

12. On the Life/ADD Elections page, enter the following information:


Plan Type 20




Benefit Plan 2X

13. Click Assign All Beneficiaries.

14. In the Dependent/Beneficiaries scroll area, enter 100 in the Percent of Benefit field.

15. Click Save.



361



Review

In this chapter, you learned that:

• The Benefit Program Report serves as an audit trail for information defined on the Benefit Program table.

• You can create a new benefit program quickly by using the Benefit Program Clone utility.

• Clicking the correct Insert button when making employee enrollment changes is important.

You must determine whether you need to insert a new plan type or just a new coverage election within anexisting plan type.

Slide 168

Student Notes



Topic See

Benefit Program Clone utility PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Manage Base



362



Lesson 16

(USA) Managing HIPAA Regulations

Objectives


• Designate a Health Insurance Portability and Accountability Act (HIPAA) plan.

• Process HIPAA certificates.

Slide 170

363



Designating a HIPPA Plan

HIPAA Provisions

These provisions enacted through HIPAA have been in effect since June 1, 1997:

• Protects employees with preexisting conditions from health plan exclusionary periods.

• Outlines creditable health coverage plans.

• Outlines the preexisting conditions that HIPAA governs.

• Prohibits discrimination against employees and dependents based on health status.

• Guarantees that health coverage is available and renewable immediately to certain individuals.

Slide 171

Student Notes

Page Used to Designate a HIPAA Plan


Plan Type and Option Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable, Plan Type and Option

Use this page to designate the plan types that are tracked for HIPAA reporting:


(USA) Managing HIPAA Regulations Lesson 16

364



Processing HIPAA Certificates

Providing HIPAA Certificates

HIPAA reports (BEN022 and BEN023):

• Create certificates of group health plan coverage for employees whose health plans have been terminated.

• List all group health coverage for the 12-month period preceding the date on which coverage ended.

• Are used by subsequent health coverage carriers to evaluate preexisting condition clauses, if applicable.

Slide 172

Student Notes

Page Used to Run the BENN022 and BEN023 Reports


HIPAA Medical Cert (HIPAAmedical certificate)

Benefits, Reports, Regulatory and Compliance, HIPAA

Use this page to print the Employee HIPAA Certificate and the Dependent HIPAA Certificate.

HIPAA Medical Cert page

Note. You can run both BEN022 (Employee HIPAA Certificate) and BEN0023 (Dependent HIPAACertificate) from the same run control page.

Lesson 16 (USA) Managing HIPAA Regulations

365



Processing HIPAA Certificates (continued)

HIPAA Scenarios

Some of the ways in which HIPAA affects employees and their families include:

• HIPAA limits the period of preexisting medical condition restrictions so that most plans must cover anindividual's preexisting condition after 12 months.

Under HIPAA, your new employer's plan is required to give you credit for the length of time that you hadcontinuous health coverage that reduces the 12-month exclusion period.

• Not all preexisting conditions are covered under HIPAA.

Preexisting condition exclusions cannot be applied to pregnant women or to newborn or adopted children.

• You may not impose a preexisting condition exclusion period for any condition for which no medicaladvice, diagnosis, care, or treatment was recommended or received more than 6 months before theenrollment date.

Slide 173

Student Notes

Page Used to View HIPAA Report Dates


Notification Letters Benefits, Review Employee Benefits, Notification Letters

Use this page to view HIPAA dates for an employee:

Notification Letters page


366



Activity 21: Generating a HIPAA Certificate

In this activity, you will review the activity overview and generate HIPAA certificates.

Slide 174

Activity Overview

Run the HIPAA report to generate all unprinted certificates.


367





Generating a HIPAA Certificate

To generate HIPAA certificates:

1. Select Benefits, Reports, Regulatory and Compliance, HIPAA.

2. Use BEN as the run control ID.

3. On the HIPAA Medical Cert page, click Run.

4. On the Process Scheduler Request page, select the HIPAA report for employee and the HIPAA report fordependents.

5. Select the type Web, format PDF , for both reports.

6. On the Process Scheduler Request page, click OK.

7. On the HIPAA Medical Cert page, click the Process Monitor link.

8. Click the Refresh button periodically to see when your report is complete.

9. Click the Details link.

10. When the run status is Posted, select the View link to access the documents (Ben022 XX.PDF andBen023 XX.PDF).

Results

This report displays the HIPAA certificate for Don Johnson:


368



This report displays the HIPAA report for Sean Johnson (Don's dependent):



369



Lesson 17

Using eBenefits Self Service Functionalitywith Base Benefits

Objectives


• Explain self-service benefits functionality.

•

Set up eBenefits.

• Describe security considerations for eBenefits.

Slide 177

371



Explaining Self-Service Benefits Functionality

Self-Service Benefits Options

The self-service benefits options available with both Base Benefits and Benefits Administration include:

• Health

• Savings

• Insurance

• Flexible spending accounts

• Dependent/Beneficiary

• Life events (except enrollment)

Benefits Administration also offers the self-service option for enrollment.

Slide 178

Using eBenefits Self Service Functionality with Base Benefits Lesson 17

372



Setting Up eBenefits

Prerequisites for eBenefits

For eBenefits to function correctly, you must set up:

• Control tables

• Workflow

• Security

• Merchant integration (optional)

Slide 179


374



Student Notes

Page Used to Select Installed Products


Installation Table Set Up HRMS, Install, Installation Table

Use the Installation Table-Products page to indicate which products are being used:

Installation Table – Products page

Note. Prior to setting up eBenefits, you must set up Base Benefits, including creating Benefit plans, planattribute tables, and benefit programs.

Lesson 17 Using eBenefits Self Service Functionality with Base Benefits

375



Setting Up eBenefits (continued)

Setting Up Access to Providers and Handbooks

You can provide employees with online access to provider websites and benefit handbooks using these pages:

• URL Maintenance page

• Provider/Vendor Table-Policy Information page

Slide 180


376



Student Notes

Pages Used to Create Online Access


URL Maintenance PeopleTools, Utilities, Administration, URLs, URL Maintenance

Provider/Vendor PolicyInformation

Set Up HRMS, Product Related, Base Benefits, Plans and Providers,Provider/Vendor Table, Policy Information

• Use this page to create an identifying code for a web address:

URL Maintenance page


377




378

Policy Information page

URL Identifiers

URL identifiers are set up to be used in the Provider/Vendor tables and the Benefit Plan tables to allow access

to providers, handbooks, and summary plan documents.

• Use this page to specify the uniform resource locator (URL) for policy and provider information.




Setting Self-Service Options in Plans and Programs

You indicate self-service plan options on these tables:

• Benefit Plan table

• Benefit Program table

Slide 181


379



Student Notes

Pages Used to Indicate Self-Service Plan Options


Benefit Plan Table Set Up HRMS, Product Related, Base Benefits, Plans and Providers, Benefit PlanTable

Benefit Program Table Set Up HRMS, Product Related, Base Benefits, Program Structure, Benefit ProgramTable

• Use this page to specify the summary plan document uniform resource locator (SPD URL) for a benefitplan provider:

Benefit Plan Table page


380



• Use this page to configure self-service options for a benefit plan:


Self-Service Configuration

Select the Collect Dependent/Beneficiary check box when you want the system to collect information pertaining to dependents and benefits and display that information on the eBenefit Summary and the eBenefitDetail Information pages. This works in conjunction with the Ignore Dep/Ben flag on the Event Rules page.

When the Collect Fund Allocations check box is selected, the system collects the information pertaining tosavings plans and displays that information on the eBenefit Savings Summary and the Detail Information pages.

Note. If you enter URLs in multiple locations, the system invokes a hierarchy that determines which URL isused on the self-service pages.


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Viewing Online Information

From the Benefit Summary page, you can access:

• Basic information for each of your benefit plans.

• Benefit providers' home pages.

Slide 182


382



Student Notes

Pages Used to View Details of an Elected Plan


Benefits Summary Self Service, Benefits, Benefits Summary

Medical Click the Medical link on the Benefits Summary page.

Provider home page Click the URL on the Medical summary page.

• Use this page to view a summary of all benefits:

Benefits Summary page


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• Use this page to view the basic information about your medical plan and to access the plan provider'sinternet home page:

Medical page

Note. The SPD URL (defined on the Benefit Plan table) has priority over the General Policy URL (definedon the Vendor table). If both are specified, the SPD URL will appear, not the General Policy URL.


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• Use this page to view information about your plan provider:

Kaiser Permanente home page


385



Describing Security Considerations For eBenefits

Security Considerations

The following requirements must be met for employees to access eBenefits:

• All employees need user IDs to access the system.

• User IDs must be linked to employee IDs.

• All user IDs must be assigned a role.

• Roles must be assigned to a permission list.

Slide 184

Student Notes

User IDs, Roles, and Permission Lists

Roles determine:

• Transactions that employees can access.

• Information that employees can view.

Roles are attached to User IDs. Examples of roles are Employee, Benefits Administrator, and Manager. Auser is frequently attached to multiple roles concurrently.

Permission lists are then attached to roles. Permission lists for self-service applications are delivered with theapplication. The eBenefits permission list must be associated with roles to access benefits information online.The system is delivered with the Employee role linked to the eBenefits permission list.


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Activity 22: Viewing Benefits Summary Using Self-Service


1. View Benefits Summary using self-service.

2. Update your life insurance beneficiary.

Slide 185

Activity Overview

You are logged into the system as Betty Locherty. Use eBenefits to view your current benefits summary andupdate your life insurance beneficiary information.



Viewing Benefits Summary Using Self-Service

To view benefits using self-service, select Self Service, Benefits, Benefits Summary.

The system displays a summary of your current benefits.

Updating a Life Insurance Beneficiary

To update your life insurance beneficiary:

1. Click the Life link.

2. Click Edit to add beneficiaries for life insurance.

3. Click Add a New Beneficiary.

4. Enter your personal information in the appropriate fields.

5. Enter your relationship to the employee as Other Child or Other Relative.

6. Enter your information in the Status Information section.


8. When you receive the save confirmation, click OK.



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Review


• Using Base Benefits with eBenefits allows employees to use self-service features to view elections, update

dependant and beneficiary information, update contributions to savings, and process life event changes.

• Self-service configuration is available on these Base Benefits tables:

• Provider/Vendor

• Benefit Plan

• Health Plan

• Benefit Programs

• User IDs must be linked to roles and roles must be linked to permission lists to enable employee access toeBenefits through self-service features.

Slide 186

Student Notes




eBenefits functionality PeopleSoft Enterprise eBenefits 9.0 PeopleBook , "UnderstandingPeopleSoft eBenefits"

eBenefits setup PeopleSoft Enterprise HRMS Application Fundamentals 9.0 PeopleBook , "Installing PeopleSoft HRMS"

PeopleSoft Enterprise eBenefits 9.0 PeopleBook , "Setting Up BaseBenefits"


389



Lesson 18

Using Multiple Jobs Within Benefits

Objectives


• Describe multiple jobs.

• Group jobs with benefit record numbers.

• Identify primary jobs.

• Calculate benefits deductions for multiple jobs.

Slide 188

391



Describing Multiple Jobs

Employee with Multiple Jobs

The following diagram shows one employee with four jobs:

Slide 189

Using Multiple Jobs Within Benefits Lesson 18

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Student Notes

Features of Multiple Jobs

The Multiple Jobs feature enables you to hire an employee into more than one job at any given time. For thissection, consider the example in the slide of an employee who works at a university with a hospital. For tax

and legal reasons, the university and hospital are set up as separate companies. The employee holds fourconcurrent jobs-professor, dean, and researcher at the university, and physician at the teaching hospital.

This is different from an employee simply moving from one job to another over time, or prorating salaryexpenses over different departments, because the jobs can be treated as separate entities for Payroll for NorthAmerica, Base Benefits, and reporting purposes, or they can be logically grouped.

You must use the Multiple Jobs feature to accommodate:

• Employees with multiple concurrent jobs in different companies.

In the US, this would mean multiple federal employer identification numbers.

•

Employees with multiple benefits eligibilities due to multiple jobs.

• The need to distribute all employee expenses (not just earnings) among different cost centers.

For benefits expenses, this is by benefit record, although, this can also be handled through commitmentaccounting.

The real power of the Multiple Jobs feature lays in how jobs are processed in the back-end modules such asPayroll for North America, Base Benefits, and Pension Administration.

You might not need to use the Multiple Jobs feature if:

• Employees never hold multiple jobs concurrently.

• Proration of earnings expense without other expenses is acceptable.

• No issues with benefits eligibility exist.

Lesson 18 Using Multiple Jobs Within Benefits

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Grouping Jobs with Benefit Record Numbers

Employee with Four Jobs and Two Benefit Records

For benefit purposes, you can logically combine two or more concurrent jobs into a single benefit track or program, identified by a benefit record number:

Slide 190


394



Student Notes

Page Used to Assign a Benefit Record Number to a Job


Job Data-Benefit ProgramParticipation

• Workforce Administration, Job Information, Job Data

• Click the Benefits Program Participation link on any page in this component.

Use this page to assign a benefit record number to a job:

Benefit Program Participation page

Note. The Benefit Record Number is zero by default. You manually change this field when appropriate.Because you are maintaining an effective-dated history of primary jobs for benefits according to a set of strictrules, don't change the benefit record number of an existing job. Doing so invalidates the primary jobindicators that reside on the effective-dated Primary jobs table and can result in erroneous processing withinBenefits Administration and Payroll for North America, resulting in abnormal termination of some processes.


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Identifying Primary Jobs

Benefit Primary Jobs

For each benefit record number, only one job can be identified as the benefit primary job, as shown in thistable:

Employee Record Benefit Record Primary Job

0 (Professor) 0 No

2 (Researcher) 0 No

3 (Dean) 0 Yes

1 (Physician) 1 Yes

Slide 191


396



Student Notes

Pages Used to Define Multiple Job Options and Maintain Primary Job Flags


Multiple-Job Optns(multiple-job options)

Set Up HRMS, Product Related, Base Benefits, Multiple Job Options, Multiple-JobOptns

Primary Jobs Flags Benefits, Maintain Primary Jobs, Maintain Flags, Primary Jobs Flags

• Use this page to define the rules for how the system sets the Primary Job Flags page for the employee:

Multiple Job Optns (multiple job options) page


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• Use this page to view and update an employee's Primary Job flag and Include Deductions flags:

Primary Jobs Flags page

Note. Use the Primary Jobs Audit report to identify errors in primary job designations. Errors might includeemployees with either no active primary job or more than one active primary job.

How the System Uses the Benefit Primary Job

The benefit primary job is used throughout the system to:

• Determine to which job the system applies the benefit deduction.

• Identify the job that will provide the service date and the termination date.

Note. Do not confuse the Benefit Primary Job flag with the Primary Job Indicator, which is used for HumanResource reporting.


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Calculating Benefits Deductions for Multiple Jobs

Calculating Deduction and Coverage Amounts

You can calculate deduction and coverage amounts based on:

• Primary Job in Benefit Record - the salary from the primary job.

• Flagged Jobs in Benefit Record - the sum of the salaries from a group of jobs within the same benefit recordnumber selected for deduction processing.

• All Flagged Jobs - the sum of salaries across all benefit record numbers selected for deduction processing.

Slide 192


399



Student Notes

Page Used to Define Calculation Rules for Multiple Jobs


Calculation Rules Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Calculation RulesTable, Calculation Rules

Use this section of the Calculation Rules page to define rules for grouping jobs together when the benefitdeduction calculations are based on the employee's salary:

Calculation Rules page


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Calculating Deduction and Coverage Amounts

When calculating benefit deductions or coverage amounts based on the employee's salary, you need todetermine which job salaries to use.

Note. The Combine Base for Multiple Jobs check box and Group Method field on the Calculation Rules page,along with the employee's Include Deductions flag from the Primary Jobs Flags page determine the deductionor coverage amount for salary-based plans.


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Calculating Benefits Deductions for Multiple Jobs (continued)

Considerations for Benefit Deduction Process

You must also determine which job salaries will be considered for the benefit deduction process, as shown inthe Used in Deductions column below:

Benefit Record Primary Job Used in Deductions Compensation

0 No Yes 20,000

0 No No 10,000

0 Yes Yes 5,000

1 Yes Yes 50,000

Slide 193

Student Notes

Example: Life Insurance Coverage Changes

In the Group Method field on the Calculation Rules page, you can select whether to include only thecompensation within a specific benefit record number ( Flagged Jobs in Benefit Record ), for all benefit record

numbers ( All Flagged Jobs), or for only the primary job ( Primary Job in Benefit Record ).

Deduction Calculations for Multiple Jobs

For deduction processing to work, the system needs to know which jobs should contribute salary informationwhen calculating the deductions or coverage amount for salary-based plans.

To calculate the deduction or coverage amount for salary-based plans, the system needs to know the jobs thatcontribute salary information. To keep track of this information, the system uses the:

• Primary Jobs table, which is automatically created whenever a job is added using the Add Concurrent Job

pages and updated whenever a job is terminated, based upon rules that you define in the Multiple-Job Optns(multiple job options) page.

• Multiple-Job Optns page, which holds the rules that are used to automatically set the flags in the PrimaryJobs table.

You can override these flags on the Primary Jobs Flags page.

• Calculation Rules page, which specifies how to add the employee's jobs together during the deductioncalculation process.


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Calculating Benefits Deductions for Multiple Jobs (continued)

Insurance Coverage

This table shows life insurance coverage changes according to the selected grouping method.

Group Method Option Benefit Record 0 Benefit Record 1

Primary Job in Benefit Record 5,000 50,000

Flagged Jobs in Benefit Record 35,000 50,000

All Flagged Jobs 85,000 85,000

Slide 194

Student Notes

Example: Life Insurance Coverage

If the employee was enrolled in a plan for benefit record zero with a rule of Flagged Jobs in Benefit Record ,and a separate plan for benefit record 1 that used a calculation rule of All Flagged Jobs, then the employeewould be covered for 25,000 in the first plan and 75,000 in the second.

The following table shows what the coverage would be in this situation with a life plan of two times salary.

Benefit Record Number Plan Calculation Rule Coverage

0 2X Life Flagged Jobs in Benefit

Record

70,000 (35,000 × 2)

1 2X Life All Flagged Jobs 170,000 (85,000 × 2)

With both plans, the employee's total coverage is 200,000.


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Activity 23: Implementing Multiple Jobs


• Include multiple jobs in calculation rules.

• Define employee benefit options.

Slide 195

Activity Overview

Your employee ([USA] Patrick Kelly, KULM01, and [CAN] Tyler Jackson, KCLM01) have been hired withmultiple jobs. In this activity, you will set up calculation rules for multiple jobs and assign a concurrent job,with new benefits options, to the employee. Then you will assign this employee to new plans and rerun theDeduction Calculation process.

You need two calculation rules that include multiple jobs. You will modify an existing calculation rule toinclude only the jobs flagged with a benefit record for deduction processing, and you will create a new rule.The new rule will include all jobs flagged for deduction processing. You will assign the new calculation rulesto your X benefit program.

You need to implement the following settings:

Settings X Benefit Program S Benefit Program

Calculation Rule C1 C4

Combine Salary for Multi-Jobs Yes Yes

Group Method Flagged Jobs in Benefit Record All Flagged


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Including Multiple Jobs in Calculation Rules

To include multiple jobs in calculation rules:

• Modify rule C1 to include multiple jobs.

• Add a new rule that includes multiple jobs.

• Add rule C4 to the Executive Benefit program.

Modifying Rule C1 to Include Multiple Jobs

To modify rule C1 to include multiple jobs:


2. Enter C1 as the calculation rules table ID.


4. Update the following fields using the effective date of January 1, 2004:


Combine Salary for Multi Jobs Selected Selected

Consider Active Jobs Only Selected Selected

Group Method Flagged Jobs in Benefit Record Flagged Jobs in Benefit Record

Note. Do not change any other values.

5. Click Save.


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Adding a New Rule that Includes Multiple Jobs

To add a new rule that includes multiple jobs:


2. Select Add a New Value, and enter C4 as the calculation rules table ID.




Description Calculation Rule 4 - All job Calculation Rule 4 - All job


Age As Of Check Date Check Date

Service As Of Check Date Check Date


Use Benefits Base As Of Check Date Check Date

Source Annual Rate Annual Rate

Combine Salary for Multi-Jobs Selected Selected

Consider Active Jobs Only Selected Selected

Group Method All Flagged Jobs All Flagged Jobs

Max Deduction % of Gross Pay(maximum deduction percentage ofgross pay)

Blank Blank

4. Click Save.


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Adding Rule C4 to the Executive Benefit Program

To add rule C4 to the X benefit program:


2. Enter X as the Benefit Program.


4. Access the Cost page, and use the arrows in the Plan Type scroll area to access the life plan type (20).

5. In the Calc TblID field, replace the previous calculation rule with C4.

6. Click Save.


407



Defining Employee Benefit Options

To defining employee benefit options:

• Modify the employees current job.

• Create a concurrent job.

• Enroll the employee in a life insurance plan.

• Rerun the deduction calculation.

• View the results.

Modifying an Employee's Current Job

To modify the employee's current job:

1. Select Workforce Administration, Job Information, Job Data.

2. Enter (USA) Patrick's or (CAN) Tyler's employee ID, select Correct History, and then click Search.

3. Access the Job Information page, and change the standard hours to 20.

4. On the Compensation page, select the Conversion tab in the Pay Components scroll area, and select ApplyFTE .

5. Click the Calculation Compensation button.

Note. Do not change any other information.

6. Click Save.

7. (CAN) Click OK if a warning message is displayed.

Creating a Concurrent Job

To create a concurrent job:

1. Select Workforce Administration, Job Information, Add Additional Assignment.

2. Add a new job for (USA) Patrick or (CAN) Tyler with an employee record number of 1.

3. Accept the remaining default values and click the Create Assignment button.


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4. On the Work Location page, enter the following information:


Effective Date October 1, 2002 October 1, 2002

Company GBI GBI

Business Unit GBIBU GBIBU

Department 10500 10000

Location KUCA00 KCAB00

Establishment ID KU001 blank

5. Access the Job Information page, and enter the following information:


Job Code 600035 820045

Standard Hours 20 20

Note. Do not change any other default values.

6. Access the Payroll page, and enter the following information:


Payroll System Payroll Interface Payroll Interface

Pay Group KLA 9LA

Tax Location Code KUCA00 KCAB00

7. Access the Salary Plan page, and enter the following information:


Salary Administration Plan KU01 KC01

Grade 008 008

8. Access the Compensation page.


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9. In the Pay Components group box enter the following information on the Amounts tab:


Race Code NAANNL NAANNL

Comp Rate 100,000.00 100,000.00

Currency USD CAD

Frequency A A

10. Select the Conversion tab and select Apply FTE .

11. Click the Calculate Compensation button.

Note. (USA) The compensation rate for this job should be 4,166.67 monthly.

12. Click the Benefits Program Participation link.

13. Identify the benefit record number as 1.

14. Enroll the employee in benefit program X for this benefit record number.

15. Click OK.

16. Click OK on any warning messages that are displayed.

17. On the Add New Assignment page, click the Refresh button in the Organizational Instance group box.


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Enrolling an Employee in a Life Insurance Plan

To enroll an employee in a life insurance plan:


2. Enter (USA) Patrick's or (CAN) Tyler's employee ID and Benefit Record Number 1.

3. Click Search.



Plan type 20 20



Election date October 1, 2003 October 1, 2003

Benefit Plan 2X 2X


6. Assign the spouse 60 percent, the child 20 percent, and the other relative 20 percent.

Note. A 50 percent minimum spousal allocation is associated with this plan.

7. Click Save.

Rerunning the Deduction Calculation

To rerun the deduction calculation:

1. Select Payroll Interface, Pay Period Deductions, Calculate Deductions.



Run Control BEN BEN

Pay Run ID 12-31-04 12-31-04

Recalculate all checks Selected Selected

3. Run the process.


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Viewing Results

To view the results:

1. Select Payroll Interface, Pay Period Deductions, Review Deductions.

2. Check results for both benefits records for (USA) Patrick or (CAN) Tyler.

3. Compare your results with the following examples.

(USA) Results

This page displays the expected results of the Deduction Calculation process for Patrick, benefit record 0:

This page displays the expected results of the Deduction Calculation process for Patrick, benefit record 1:


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(CAN) Results

This page displays the expected results of the Deduction Calculation process for Tyler, benefit record 0:

This page displays the expected results of the Deduction Calculation process for Tyler, benefit record 1:


hr base benifits

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