Deduction Discrepancy Audit
EN’s integration with payroll vendors was designed to share demographic and deduction data between two separate systems that would typically require manual, double entry to capture employee information. In order to move to the real-time integration, users must go through two audits first – a demographic audit and a deduction audit. Specific to the Deduction Discrepancy Audit, the end-goal is to be sure that Employee Navigator and the payroll system have matching deductions for supported plans within the integration. This requires the user to view a comparison of the Navigator deduction amounts and the deduction amounts in payroll, and resolve any discrepancies that may exist between the two.
NOTE: The Deduction Discrepancy Audit typically requires manual intervention to correct deduction amounts, to adjust missing deductions, or to address missing deduction codes. There are a few common issues that arise when users go through this audit, and a majority of them surround user confusion with either fixing deduction amounts in EN, or the different statuses they might see.
Troubleshooting Deduction Discrepancies
Issue: The amount in payroll is correct, how do I resolve this so the amounts match between Employee Navigator and payroll?
Reasons: There are a variety of reasons that a deduction amount in Payroll could be correct and this question would arise. The most common reasons that users will encounter are:
- The employee is enrolled in the wrong coverage level in Employee Navigator, causing the EN amount to be incorrect.
- The contribution types or costs of the particular plan may have been set up improperly or entered incorrectly.
- Either the Rates or the Rate Settings may have been set up improperly.
- The Enrollment Options for the plan were set up improperly.
- Verify the correct coverage level that the employee should be enrolled in, and use the ‘Modify Enrollments’ link to make the proper correction for the affected employee(s).
- Verify the correct contribution types (Employee Cost $, The Company Cost $, The Company Contribution %) and be sure the correct amount has been entered in for the plan.
- Be sure that:
- The Rate Settings for Age-Band changes are adjusted properly according to Carrier specifications.
- The Rates have been entered in correctly according to Carrier specifications by age band, and that the Spouse rate basis is correct as well.
- Check and verify that all Enrollment Options are correct.
Important Note: Once any corrections have been made, if prompted, you must recalculate the rates for the plan. Afterwards, re-enter the Deduction Discrepancy Audit report and click the ‘Refresh Statuses’ to pull in the updated employee costs.
Issue: An employee has a status of ‘Missing Deduction Code’. What should I do?
Reason: An employee will have this status for one of three reasons:
- The associated plan is of no cost to the employee, and thus will not need a deduction code in the payroll system or Employee Navigator. Their ‘EN Deduction Amount’ would read as $0.00.
- The particular plan is not supported within the integration, and thus we would not want a deduction code entered in for that plan. They may, however, have an ‘EN Deduction Amount’ since the plan may still have an employee cost associated with it.
- An example would be a 401K plan. You may be tracking an amount in EN; however, because those plan types are not currently supported, we would not want a deduction code entered in for that plan to send amounts to Payroll.
- The particular plan is supported within the integration, and you may have forgotten to enter a deduction code for the plan in order to exchange deduction amounts from Employee Navigator to the Payroll system.
Solution: For reasons 1 and 2, you can ignore this status. For reason 3; however, you would want to go back to the Deduction Code section of each applicable Payroll Group and add in the proper deduction code for that plan. This would effectively remove that ‘Missing Deduction Code’ status within the audit and enable you to sync the EN amount with Payroll.
Issue: I am seeing a ‘Not in Sync’ status on the audit report. How do I resolve this?
Reason: You are seeing this status because the employee(s) who it appears for have deductions in the payroll system that are not in Employee Navigator. The systems are out of sync in regards to these particular deduction amounts, and you will need to resolve those discrepancies.
Solution: You will need to verify whether the employee truly needs the deduction that is showing as ‘Not in Sync’. If the employee needs that deduction to be in Employee Navigator, you can add it through the Manage Enrollments section of their Employee Management tab in EN. If the employee should not have that deduction, our recommendation would be to remove it from the payroll system so it is no longer pulled as a recurring deduction for the employee.