There are many reasons why an ee's cost may be incorrect, but it's important to identify if just per pay costs are incorrect, or if both per pay and monthly costs are incorrect.
Per pay costs are calculated by the payroll group / calendar, or pay frequency of a class if payroll groups haven't been configured. Monthly costs are calculated by the plan design pieces - i.e. rates and contributions. By identifying which costs are incorrect, you can cut your troubleshooting steps in half.
Most often, users find incorrect costs while going through enrollment or viewing the benefits/enrollment summary. But costs here are reflected as per pay deductions, so before you jump back into the plan design to search for the problem, check the monthly cost via the ee's data sheet (Employee Management tab > Employee Data Sheet). Under the Enrollments section, confirm the amount listed under Employee Cost for the specific plan. Note: For OE elections, check the box next to open to view open enrollment elections.
Now that you've identified which costs are incorrect, use the troubleshot steps in the corresponding section below.
Per Pay Costs Are Incorrect, Monthly Costs Are Correct
Incorrect per pay - but not monthly - costs indicate an issue with the ee's payroll group and/or calendar. Walk through the below steps to pin down the problem.
- The ee is assigned to the correct payroll group.
- The payroll group is setup with the correct pay frequency.
- The payroll calendars are configured. Note: payroll calendars must be configured for the entire calendar year(s) in which a plan is effective. e.g. plan is effective 7/1/15 - 6/30/16. Payroll calendars must be configured for entire 2015 and 2016 calendar years.
- The # of Pay Dates displayed on the payroll calendar is correct.
- No months are missing pay dates and/or one month has more pay dates than expected.
- The number of deductions / skipped deductions per plan are correct under Customize Deduction Dates.
- The ee's Override Pay Frequency isn't set. Check this under the ee's Profile tab > Compensation > Override Pay Frequency. To reset, choose Select from the drop-down and hit Save.
- Plan isn't setup for an entire year (based on plan's Start date and End date). If plan isn't setup as a full year, deductions will only be taken out for the number of pays in the short plan year. Check the number of deductions under Customize Deduction Dates. Deductions will be calculated accordingly.
- Employee per pay amounts need to be recalculated. The per pay recalc tool is triggered when changes are made to the payroll calendar after ees have already enrolled in benefits. The tool updates ee per pay costs according to the new changes. If a per pay recalc is needed, a warning message will display under the company Settings tab > Payroll. Likewise, when in the specific payroll group that was changed, a needs recalc warning appears in the left nav next to the calendar. To run the per pay recalc tool, go to the Benefits tab > Recalculation Tools.
- Is the plan setup for less than 12 months? As of now, our system uses 12 months to calculate per pay deductions, as 12 months is the standard length of a plan year. We generate the 12 months used to determine per pay deductions according to the plan plan start date. So for example, if a plan is configured for less than 12 months - e.g. 12/1/2015 - 5/31/16 - the system will calculate per pay costs for 12/1/15 - 11/30/16 according to the plan start date and regardless of the plan end date.
Note! Changes made to payroll groups / calendars require a plan recalc on all plans. To recalc, go to the company's Benefits tab > Rate, Eligibility & Bulk Enrollment Tools. Click on the corresponding plan and then select Plan Costs.
Both Per Pay and Monthly Costs Are Incorrect
Incorrect per pay AND monthly costs indicate an issue with the plan design or in some cases, an imported file. Walk through the below steps to pin down the problem.
- The plan rates are the correct monthly rates.
- The plan contributions are the correct monthly contributions. If based on rules, double check that ee's record reflects correct rules (class, tobacco status, etc.). Also double check the contribution types to confirm correct option is selected - e.g. Company Cost, Employee Cost, etc
- The plan's costs need to be recalculated. Making changes to plan designs after initial activation requires a recalc in order to apply those changes to existing enrollments. All plans requiring a recalc will display a recalc warning on both the plan and under the company's Benefits tab > Rate, Eligibility, & Bulk Enrollment Tools.
- You made changes to the plan design after ees enrolled and running a recalc doesn't update the record. For some plans, like CDH or cafeteria that requires ees to input per pay contribution amounts, a plan recalc won't touch the enrollment page. In these cases, you may need to go back into the ee's enrollment flow to decline and save, then go back and re-elect in order to reset.
- You imported enrollments into a plan that requires a selected benefit amount (e.g. life or disability), but your spreadsheet didn't include a specified benefit. Likewise, your spreadsheet may have included incorrect costs/contributions for plans like universal, CDH, cafeteria, etc.
Note! Changes made to plan designs (rates, contributions, policy settings, etc.) require a recalc of the plan costs via the company's Benefits tab > Rate, Eligibility & Bulk Enrollment Tools. If the group is currently in an active OE season, you'll need to recalc for both Current and Open.
Common causes of incorrect VL & VXTD costs:
- Are policy settings (Basic > Policy Information) setup correctly according to plan design? (e.g. Change Rates, Age Reduction Effective, etc.)
- Is the ER Contribution Type correct? (Enrollment > Benefits > Employer Contribution Type)
- Are rate options (Enrollment > Options) correct? (e.g. Spouse rate based on employee age, child rates based on all children, etc.)
- Tip: If child rates are off, check the setup option for Child rates based on all children. When checked, the rate for child life is the same regardless of the number of children. If unchecked, the rate will be calculated according to the number of children enrolled.
Note: changes made to VL / VXTD plan designs (rate options, policy settings, etc.) require a recalc of the plan costs via the company's Benefits tab > Rate, Eligibility & Bulk Enrollment Tools.
Common causes of incorrect FSA / DFSA contribution amounts:
- Confirm that the number of pays remaining (displayed on the page in the enrollment flow) is correct. If not, you probably made a change to the payroll calendars or plan design after ees enrolled. These changes won't apply to existing enrollments, so you'll need to go into the ee's enrollment flow, decline the benefit and save the page, then go back and re-enroll. This will reset the number of pays and fix the contribution amount.
- Are mid-year new hires pro-rated? Check the plan setup under Basic> Policy Information> Mid-Year New Hire.
Note: changes made to FSA / DFSA plan designs require a resave (or decline, save & re-elect) of the FSA / DFSA page in the enrollment flow in order to reset and apply changes to previous enrollments.
Why is an ee / dependent's cost reflecting $0?
Typically, there are two main reasons why a $0 cost is reflected for an enrollment.
- The ER contribution is set to 100%. Under basic models, check under Contributions for 'Company pays $ or %'. Under VL/XTD models, check under Enrollment> Benefits> Employer Contribution drop-down.
- The enrollment is pending approval of EOI.