Currently we charge for benefit coverage every pay period. When an employee separates, they pay for coverage through the last pay period that they work, but are covered on insurance through the end of the month. Essentially, we are giving away the remaining coverage.
The desire is when an employee separates, that we collect the remaining premium amounts from the employee's last check.
Here is an example:
The employee separates 10/2/12 and has coverage through 10/31/12.
Our pay periods are setup as:
21-2012 (09/23-10/6) Paycheck date: 10/12
22-2012 (10/7-10/20) Paycheck date: 10/26
23-2012 (10/21-11/3) Paycheck date: 11/9
We only deduct benefits on the first two paychecks of the month. So this person will owe on the 10/12 and 10/26 paychecks, but will not be receiving a paycheck on 10/26.
So we want to deduct 2 benefit payments on the 10/12 check to cover the remaining coverage amounts.
Has anyone done this and what is the best way to do it? Thanks!
Our employees are paid on 26 pays per year, and most Benefits Premiums are calculated on semi-monthly basis (24 times per year). The Benefits Infotypes are set-up to reflect the coverage period, but there is an agreement with the Benefit Providers that no premium is taken in the enrollment month (unless enrollment is on the first day of the month) and that a full premium is taken in the termination month even if the employee terminates on the first day of the month. In our Payroll Schema, our Benefit Functions (P0167, P0168, P0377, etc.) all use END as the parameter, so the premium is taken only if the Infotype is valid on the last day of the Payroll Period.
We created 2 WTs for IT0015, both with Number/Unit, and a set of PCRs to process them and the Benefits WTs. If the employee has WT 9NOB (No Benefits) with number 1, then all his Benefits WTs are deleted from the Input Table before they could be transfered into RT, and if the employee has WT 9MBF (Multiply Benefits by Factor) with a number (such as 2), then all the Benefit WTs are multiplied by that number. With these, we can ensure that no Benefits are deducted in the enrollment month (even if they are generated by the functions) and that the last month's premiums are deducted in full (by multiplying last pay's Benefits by a factor).
Thanks for the information Kalise,
I found the same link to table view V_5UBA_WT in the Canadian Payroll>Benefits Integration section of the IMG. I then checked our Payroll Schema and noticed that there were no trace of function DATES in our sub-shemas ZBE1 or sub-schema ZBE2 (nor in XBE1 and XBE2).
If configured correctly, your option would enable automatic calculations according to set rules. The option I opted for requires manual intervention but offers more flexibility (the multiplication factor must be between 0.5 and 24, and each Benefit WTs also has it's own Factor WT for special cases where only one or two Benefits need to be multiplied).
Very useful post! Thanks.
I have one question, in this checkbox help, it says to configure a Termination rule as a dependencies:
In Benefits Customizing, you need to set up a termination rule for a plan that is prededuction-relevant.
You need to complete Benefits termination for terminating employees before you run the last payroll."
I am lookling for the customizing node in IMG I can not put my finger on it.
Can you provide more information on what your question is?
For our setup, we have Dynamic Actions that we run to Terminate employees. I changed this setting on the wagetype for the plan I wanted to take remaining deductions from. Then, without any other "dependencies/termination rules", when I did a termination, it works appropriately.
Are you saying when you terminate an employee with this set, it's not working?
Our requirements are for the second decution of the month to be taken if the employee leaves in teh first pay of the month.
When I check marck this box, it looks like it is taking that deduction/taxable benefits for the whole year.
As I mentionned, I only want it to be taken for the next pay period if it is the second pay of the month.
Yes, that is exactly what we are doing. We deduct annual amounts by pay period dates (really not important), so any remaining owed deductions (could be more than one in some cases) are taken. Whatever would have normally gone to arrears. (Maybe that is your issue, is yours set to go to arrears?)
I also did the same thing using monthly amounts and it works that way too.
I think you must have something else going on here.
Was that person in test, caught up in payroll and them terminated at a later date?
This should really work perfectly, I didn't have any issues. Let me know more details and I will see what I can find.
This is a "new requirement". The business have been collecting the second half of the month manually for this benefit. They are entering the owed amount in IT0015.
I am here to improve their process, so it is an area I identify where we can do that! I am currently working in a dev environment.
I found where to configure the Termination Rule but is stil does not work for me.
Looks like the amount does not go to arrear but goes to claims.
Thanks for your help!