The system is designed to capture changes being processed to an employee’s record in Employee Navigator. When a change is made that impacts the payroll record, a line item is written to the applicable payroll file in order to ensure that the deduction/credit is reported within the payroll system for the employee. Different actions trigger different results on the payroll file. Here are some common changes along with a description of what to expect to see on the payroll file.
When a new hire is entered into the system a record will be created for them to log their demographic information into the payroll system on the current payroll file.
When a new enrollment is created in a plan you should expect to see a payroll deduction inserted onto the applicable payroll file. Below are a few examples of how new enrollments can be written to the payroll file. In these examples we will assume that the “current” payroll is measuring from 2/1 – 2/14 and is schedule to pay out on 2/20.
Enrollment No Backdating: Employee is adding benefits on 2/5 and those benefits will be effective 2/1. A payroll deduction inserted into the payroll set to be paid on payroll scheduled for 2/20 as the enrollment although retro to 2/1 is still within the current measurement period.
Enrollment With Backdating: Employee is adding benefits on 2/5 and those benefits will be effective 1/15/2015. Based on your setup, if you are tracking the backdated deductions, a “catch-up” deduction will be inserted on the 2/20 payroll to catch the retro deduction that is needed along with a record for the regular recurring deduction. Also based on your setup you may see one more record written to the next payroll cycle again reporting the regularly scheduled recurring deduction.
Example With Future Effective: Employee is adding benefits on 2/5 and those benefits will be effective 3/01/2015. Since the enrollment is not impacting the current payroll file or perhaps the next payroll cycle (scheduled for 2/20) you will NOT see a deduction posted on this file. You will expect to see your deduction posted to the payroll scheduled for 3/20 which is measuring changes effective from 3/1 – 3/14.
In the event that a benefit has a rate change and the benefit needs to be recalculated (either at a single employee level or on a company wide level), when the recalculation is processed IF the recalc of the benefit causes a change in the payroll deduction for an employee that change will be inserted into the appropriate payroll file. If the company is setup to track backdated changes, if the recalculation triggers a backdated deduction the company should expect to see the backdated deductions inserted as well.
Example: If it is discovered that a rate was incorrectly setup for a plan and the rate is corrected, a recalculation of the benefit should be completed. In the event that the recalc of the benefit impacted the employee payroll deduction there will be a record of the corrected deduction inserted into the payroll. If the recalculation resulted in backdated adjustments, the adjustments should be inserted into the payroll file as well.
Rate recalculation records can be created due to multiple actions such as but not exclusive to a cost in change of the plan in the plan setup (such a correction on a rate structure), benefit reduction due to a scheduled age reduction, salary change and even a life event change that triggers a new rate tier.
Drop of a Benefit
When an employee has been dropped from a benefit or has been terminated a record will be inserted to the payroll file. The record will appear in the payroll file according to the effective date for the termination of the deduction.
Example: Using the 2/20 payroll dates again, if the benefit is dropped on 2/5 and the drop date is effective for the current payroll cycle the record will be inserted to record the end of the deduction. If the drop of the deduction is future effective then the drop will be written in the appropriate future payroll file.
- NOTE: A drop of coverage during open enrollment will NOT report on the payroll file for a new plan year.
When an employee is terminated in the system a record will be written into the proper payroll based on the termination date along with the termination rules on all benefits enrolled.
Example: Using the 2/20 payroll dates again, and noting the the termination is effective as of 2/5. Employee is enrolled in Medical which ends as of the last day of the month following termination and is also enrolled in Voluntary STD which ends as of the employment end date. On the 2/20 payroll a record will be written to drop the Voluntary STD. On the following payroll file a record will be written to drop the Medical since that benefit is carried through the end of the month.
Deductions for open enrollment elections will not write on the payroll files until the OE is closed out.
Additionally, payroll deduction codes MUST be entered for all new plans that are added after the initial advanced payroll tracking setup BEFORE employees enroll in those plans. To do this, go to the company Settings tab > Payroll > edit the payroll group > Deduction Codes. WARNING: Deductions will NOT be written if deduction codes were not added prior to employee enrollment.
To help minimize risk of skipping this step, deduction codes are automatically written for renewed plans.
- IMPORTANT NOTE: The first file that is created for the new plan year is intended to be a full replacement file for Payroll. The file will contain only enrollments for plans current payroll/plan year. During Open Enrollment, when someone declines coverage for the new year but they were enrolled in the current coverage, a drop of coverage for the current plan year will not be included in the file.
Overriding Enrollments Outside of Advanced Payroll Tools
All enrollment changes that occur in the system within the normal processes - e.g. new hire enrollment, life event - will pull into the advanced payroll file as expected. However, it's important to keep in mind that enrollment changes/overrides processed via other override tools such as the employee Modify Current Enrollments link and the enrollment editor tool, may not pull into the payroll file properly.
- New hire/newly eligible enrollment
- Changes made via Life Events tool (Update Benefits tab)
- Changes made via Modify Current Enrollments link
- Enrollment editor - change coverage start date
- Enrollment editor - drop coverage: file will reflect ended deduction date but not proper credits/adjustments
- Enrollment editor - change coverage end date: file will reflect new ended deduction date but not proper credits/adjustments
- Enrollment editor - benefit/cost overrides