Coverage, Premiums and Rates


Coverage, Premiums and Rates


Till now, we have discussed the Eligibility, Electability, Defaults, Enrolment rules etc. and all these help us defining the rules upon which a Participant will be enrolled in a Comp Object. Now, let's go a step further. Let's discuss about the money that comes into action for these enrolments. There are many things that come into picture, the Benefit Amount upon which the Participant is enrolled, the Premium of the enrolment, the Employer Contribution and the Employee Contribution. The Employer Contribution is simply "Premium - Employee Contribution". So we are going to discuss about the Coverage, Premium and the Employee Contribution aka the Rate.

 

Coverage (Benefit Amount)

Coverage is also known as the Benefit Amount, and as the name suggests, it is the amount associated with any given comp Object. Usually Health Coverage Plan types do not have Benefit amounts, these are more appropriate to Plan types like Life Insurance and Flexible Spending accounts.

Coverage amounts are usually set by the Carrier, so they are independent of Program. At most cases, Coverage are defined at the Comp Object Levels, if there are Options in that Plan type, Coverage is defined at the OIPL level; else at the Plan level.

Let's define Coverage, and discuss the different aspects of it. See Figure 6.34 – Coverage Definition.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Rate/Coverage Definitions -> Coverage Calculations


(Figure 6.34 – Coverage Definition)

Steps: Create a new record.

 

Name

Name of the Coverage

Type

This is where we can tell the system, whether it’s a Coverage Calculation or something else. Now the something else could be: Benefit, Item, stock options, Time Off.

It is typically based on the Comp Object for which the Coverage is being defined. If the Comp Object offers Time Off / Stock Options, then the Type of the Coverage will be dependent on that.

Level

Choose the level at which the Coverage is going to be defined. OIPL or Plan.

Compensation Object

Name of the Comp Object on which the Coverage is being defined.

UOM

It is used when the Type is either stock Options or Items or Time Off. Can be left Blank for Coverage.

Boundary Period

A Boundary Period can be selected to restrict the Coverage amount for a Particular period.

Max Overridable

This Flag needs to be checked, in case the maximum Coverage can be allowed to be overridden.

Calculation Method

There are many options available, let's go through one by one.

  1. Calculate for Enrolment Rule: We can use a Value rule that returns the Benefit Amount.
  2. Flat Amount: This will be just an amount flat for all. We can enter the value at the Flat Amount field.
  3. Flat Amount + Multiple of Compensation: This uses a Derived Factor of Type Compensation. It takes the Value from the DF, uses the Operator and the Multiplier to arrive at a value. Then the value is added to the Flat Amount and the benefit amount is achieved. A set of rounding logic can also be used to round the final value. A lower and Upper Limit can also be used as Boundaries.
  4. Flat Amount + Multiple of Compensation Range: This is similar to the last one; however this one works with a range of values with an Increment value. The DF is multiplied with the Min Value, Max Value and the middle values with increments, and then the Exactly middle Value is achieved; it is then added up with the Flat amount to get the Benefit Amount. Rounding and Limits apply.
  5. Flat Range: The Minimum, Maximum and the Increment are given. The Exact middle value of the range is derived as the Benefit Amount.
  6. Multiple of Compensation: It's just a DF with an operator and a Multiplier. Rounding and Limit codes apply.
  7. Multiple of Compensation + Flat Range: This is similar to Bullet- 4; however the range is defined for the Flat amount. 
  8. Multiple of Compensation Range: The min and max Range is defined along with the DF, an Operator and an Increment value. The Exact middle value is calculated and then used as the Benefit Amount.
  9. No Standard Values Used: Coverage is not calculated. It’s Null.
  10. Post Enrolment Calculation Rule: This is again a Value rule; however unlike Calculate for Enrolment Rule, this gets called once the election is being saved. These are used, when our Coverage is dependent on the elections / dependent designations.
  11. Same as Annualized Elected Activity Rate: In this case, Benefit Amount will be same as the Elected Employee Rate.

 

This completes the set up for a Coverage Calculation. We should have a Coverage defined for all our Life Insurance plans. There is one thing that we missed here, Variable Coverage. We left it knowingly. Let's park it for now, we will learn about that in a separate section. OK, let's move to the next section.

Premium

The Premium is the amount, which is taken by the Carrier in return of the Insurance. So in other words, it's the cost of the Insurance being offered. The Firms make direct contacts with the carriers in order to get a reasonable Premium from them based on the Plans the Carrier has to offer. Premium is something that the Firm pays the Carrier directly. The Employee does not have any interference with it; not even in COBRA Coverage. In COBRA Coverage too, the firm pays the Premium to the Carrier and gets it reimbursed from the COBRA beneficiary along with a 2% service charge. Premium must be defined for every Comp Object, as the Carriers that offer the Insurance claim it, and we must have a record of payments for our Accounts Payables. Let's see how to define a Premium. See Figure 6.35 – Premium Definition.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Rate/Coverage Definitions -> Actual Premiums


(Figure 6.35 – Premium Definition)

 

Steps: Create a new record.

Name

Name of the Premium

Type

Either it could be a Regular Premium, or an ASO fee, usually used for COBRA Premiums, or could be a Stop Loss Premium

Plan

The Plan for which the Premium is being defined.

Option

The Option on which the Premium is being defined; if Option exists.

Assignment

Either use the Assignments used in enrolments or we can ask the system to expect an Assignment fed (as a Parameter) during the Premium Calculation Process. Suggested: Enrolment

Assignment Level

On what basis is the Premium going to be calculated? Based on the Number of Participants / Number of Plan or Options / Number of Participant enrolment in Plan or Options. This can be defined here. Suggested: Participants

Prospective / Retrospective

Prospective is chosen when we want the system to calculate the Premium for Future Enrolment. Retrospective is for the Past enrolments. Suggested: Retrospective

Product

Tells the system more about the Product being defined. Suggested: Premium

Payer

Who is going to pay the Premium? Participant / Employer / Total Plan Premium. Suggested: Employer

Currency

The Currency of the Premium.

Supplier

Add the Carrier name here. This is a LOV, which gets populated from the Organizations attached to the Plan.

Reference Period

The Period with which Premium is going to be paid. Suggested: Monthly

Calculation Method

Here are the Options for Premium Calculation

  1. Flat Amount: A fixed amount for Premium
  2. Multiple Of Coverage: The Coverage related to the Comp Object gets Multiplied with the Multiplier with an Operator in place.
  3. Multiple Of Total Coverage: Its same as bullet 2; however the Coverage in consideration is the sum of all Coverage related to the Comp Object.
  4. Multiple Of Total Participants: The total number of Participants multiplied by the Multiplier with an Operator in place.
  5. No Standard Values Used: There is no Premium amount defined.
  6. Rule: A FF to do the Calculation and return an amount

Partial Month

 

Partial Month determination Code

What happens if the participant's enrolment starts from the middle of the Month? Should the firm pay the Premium for the entire Month or Not pay the Premium for that month at all? This is where we define that.

All: The Premium for the Entire Month is Paid
None: The Premium is not paid for the Month
Prorate Value: The Premium is Prorated based on the number of days the Participant was enrolled
Rule: A FF will be used to determine how much to pay for the month
Wash Rule: A date will be decided. If the Participant is enrolled on or before that date, the premium will be paid for the entire month, else nothing. A Number like 15; if the Participant is enrolled as of 14, the Premium for the entire month is paid, else if he enrolled on 16th, there is no premium for this guy.

Rule

If the determination code is Rule, a Rule has to be entered here.

Wash Rule

If the determination code is Wash Rule, the day number is entered here.

Proration

If the determination code is Prorate Value, the proration comes in to picture. The Proration can be defined here, with a From and To day of month; then the Percent of the Premium can be mentioned out here. We can also set a rule to return the percentage. Each row can be specified for months of a Particular set of days; like a row for months with 30 days; another with months with 28 days etc. At the end we can specify, the action; like start / stop. For an example, what if the Participant's enrolment ends as of 18th of February with 28 days; it’s a Stop.

Credits

 

Credit Lookback

There will be cases where our firm will be enrolling Participants with a Back date. For an example, the Participant should have been covered since January; but he got enrolled only in March. Now our firm has not paid the Premium for the Month of January and February, because at that time, the Participant was not enrolled; however the carrier should get that much money.

Look back months enable the system to go back in time and check if the Premiums have been paid for every month of enrolment. If it finds any differences, it adds up that amount in the current Month Premium payment. In the Look back Months, we specify the number of months we want the system to look back.

Current Pay Only

If the Current Pay only flag is checked, the system does not look for look back.

Costing

 

Costing

Remember the Cost Allocation KFF from Payroll? This is the one bobbing up here, once we click on Costing Tab. The System wants us to specify the account onto which this Premium has to be credited.

 

This completes the Premium Configuration; except the Variable Rates part. Let's move to the next section.


Rates

We understand that, the Premium is paid by the Firm. Now the firm pays a portion of it from its own pocket, we call it the Employer Contribution/ ERC; the rest of the amount is filled in by the Participant, it’s called as Employee Contribution/ Rate. So Rate is an important part of Benefits administration. Unlike Coverage and Premiums, Rates are specific to Programs; so that makes rates more flexible. One OIPL in one Program might have a lower rate than the same OIPL in another Program. For an example, In COBRA the rates will always be higher, as those are the 102% of premium, and there is no ERC. 

Let's configure a rate, and learn more about it. See Figure 6.36 – Standard Rates.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Rate/Coverage Definitions -> Standard Rates


(Figure 6.36 – Standard Rates)

 

Steps: Create a new record.

Name

Name of the Rate

Status

There are four choices:

Active: The Standard Rate is active and is being used currently.
Inactive: This rate row is not in use now; however it might get reused.
Pending: This rate row is not being used now; however it may get used in future.
Closed: This rate row is not being used and will never be used in future.

Level

The Level at which the Rate is being attached. It can follow any of these five levels:
Plan, PLIP, OIPL, OIPLIP, and Option.

Compensation Object

The name of the Compensation Object, based on the defined level.

Activity Type

Activity type is a type of classification that tells the system about the characteristics of the rate row. Again, the activity type can be used as an indicator for Interfaces and Extracts. Most frequently used activity types are:

Employee Payroll Contribution: Rates for Employees, the rates are deducted from the Payroll
Participant Individual Contribution: For COBRA Rates, as the rate is paid by the Participant individually
Employer Contribution: For Employer Contributions
Employer Matching Plan Contribution: Used for rates where Employer puts a match for rates. Example: 401K in US, Provident Fund in India.

Tax Type

The Tax type is a dependent Value set of the Activity Type. It tells the system about the Tax plan of the rate row. It can be After-tax (Post Tax), Pre-tax, Taxable, Non-taxable, and Not Applicable.

The Taxes are mostly driven by the Payroll and its elements, and this tax type here is usually used for the classification like Activity Type.

UOM

Unit of Measure, used in case of Rates with Shares/ Time Off

Element Determination Rule

A rule can be used here, in case we want the Element for the rate to be dynamic.

Element

The name of the element associated with the Rate row.

Element and Input Value Required

This flag tells the system whether the Element and the Input values are static or Dynamic for the Rate row in concern. If it’s checked, we must enter a value at the Element and the Input Value.

Input Value

The Input Value associated with the element that is going to store the amount returned by the rate row.

Extra Input Rule

At times, we might require to feed more than one input values, for cases like that a FF can be used here.

Parent/ Child

During the design we might need more than one activity rates for a Comp Object. We might designate a few of them as Child and one as Parent. The Child rate rows will be taking the final amount returned by the Parent one and use the same for the calculation. This is the field through which we can make a Rate row parent/ child.

Uses Variable Rate

This flag tells the system, if it uses Variable rates.

Assignment to Use

This is where we tell the system, which assignment to use. Either Employee/Benefit/Applicant/ Any

Subject to Imputed Income

We will learn more about this flag in Imputed Income.

Calculation Method

 

Calculation Method

There are many options available, let's go through one by one.

  1. Calculate for Enrolment Rule: We can use a Value rule that returns the Rate Amount.
  2. Flat Amount: This will be just an amount fixed for all. We can enter the value at the Flat Amount field.
  3. Multiple of Compensation: It's just a DF with an operator and a Multiplier. Rounding and Limit codes apply.
  4. Multiple of Compensation and Coverage: This is similar to Bullet- 3; however the amount is derived from the sum of the Multiple of Coverage amount and Multiple of Compensation.
  5. Multiple of Coverage: The rate is derived from the multiple of Coverage defined for the Comp Object.
  6. Multiple of Parent Rate: The Amount is derived from the Parent Rate, operator and multiplier.
  7. Multiple of Parent Rate and Coverage: It’s similar to bullet 6; however the amount will be a sum of multiple Parent rate and the multiple Coverage amount.
  8. Multiple of Premium: The Amount is derived from the Premium, Operator and the Multiplier.
  9. Multiple of Premium and Coverage: It’s similar to bullet 8; however the amount will be sum of multiple of Premium and Multiple of Coverage.
  10. No Standard Values Used: There is no amount for the rate. It’s Null.
  11. Pay Rate Value: The amount is derived from the Pay Grade Rule. It’s a FF. Usually used in CWB set ups.
  12. Set Annual Rate Equal to Coverage: In this case, the Annual Rate will be the Coverage Amount. Then the rate will be divided into the number of pay periods to get the actual rate amount.

Enter Value at Enrolment

If this flag is checked, then the rate amount is not decided by the system. The Participants enter the amount by themselves during enrolment. This functionality is usually used with Flexible Spending Accounts.

Calculate for Enrolment

This flag tells the system to calculate the rates once the elections are saved, based on the Calculation methods.

Enter Annual Rate

The methods in which we need to put the Rate amounts, we can also enter the annual rates itself if this flag is checked.

Partial Month Determination 

 

Partial Month Determination

It acts the same way as it is explained in Premiums.

Effective Date

The Effective date is used to tell the system the date as of which it should consider the enrolment for the Plan

Proration

The proration acts the same way as it was explained in the Premium.

Annual Rates

 

Expected Contributions

This is to track claims and Contributions. This is where we tell the system whether to use the Balances or Estimates or Both.

Claims

To track the claims to be reported against this Rate

Contributions

The Contributions to be reported against the Rate

Prorate Annual Min and Max Value

The Proration Logic for the Min and Max Annual Rates

Processing Information

 

Value Override Allowed

This flag allows overriding the default rate for any participants.

Assign on Enrolment

If this flag is checked, the calculated amount is assigned to the Comp Object. If not checked, the calculated amount does not get applied automatically.

Display on Enrolment

This enables the Rate to be displayed during enrolment.

Process Each Pay Period Default

This flag can be checked if the rate has to be calculated based on the Pay Periods.

Rate Periodization Rule

We can also use a FF to change the way the communicated rate is calculated. Let's say our firm wants the rates to be based on every fortnight, not based on the Pay Frequency, we can do that with the Rule.

Processing Source

Just to update the system about the source of processing, whether it will go to Payroll / AR / OAB

Recurring

Tells the system about the Recurrence of the Rate, whether once / Recurring / Either / Rule

Value Passed to Payroll

This is where we tell the system about what to pass to the Payroll. Whether we want to process the Annual Amount / Communicated Amount (Based on Periods) / Defined Amount (Monthly) / Estimated Per Pay Period (Works based on the Proration logic) / Per Pay Period Amount.

The Per Pay Period Amount is the default; if the field is left blank.

Compensation Category

The Compensation Category tells the system about the Compensation in use.

Currency Determination Code

This is where we can have codes to determine the currency of any rate row. Leave it blank, if the related Element holds the Currency.

Payroll Information

 

Name

We can add the name of the Payroll, in case another Payroll from a different system is in use.

Type

The Element for the external Payroll will be either a Deduction / Earning. That can be specified here.

Identifier

The Name for the element in the External Payroll can be used here.

 

Matching Rate

There will be instances where the Employer cost is usually a match/ percentage of the Rate that the employee pays. Matching Rate is the place where we can add up rules that can make sure the percentage of the match is being charged to the Employer. Although this functionality is not fully functional yet; however this is certainly a powerful tool to handle the ER Match. At present we use a different rate to handle the ER Contribution and Match.

Period to Date Limits

There are plans where there is a Maximum Contribution amount defined as per regulations. For cases like that, we can define a Period to date limit that can stop or start the contributions once a Particular amount is reached. The Period to Limits can be defined in this navigation:

Responsibility: HRMS Manager

Navigation: Total Compensation -> Rate/Coverage Definitions -> Period-to-Date Limits


(Figure 6.37 – Period to Date)

Once the Limits are defined, it can then be attached to any standard rates to enforce the limit on it. The Period-to-Date Limit button on the Standard rates button is the place where a PTD can be attached to a rate.

 

Variable Rate Profiles

Let's imagine another scenario. Our firm wants the following rules to be implemented for Plan A.

  • The Participants from Benefit Group A and B should be charged $100 / month.
  • If on Unpaid Leave Of Absence, the activity type should change from Employee Payroll Contribution to Participant Individual Contribution
  • If the Participant is greater than 68, then the rate should be just $50/ month.
  • The Participant living in New Hampshire should pay $10 less than the regular rate.
  • All others should pay $127.68/ month to continue in the Plan.

So now, if we were to implement this requirement in the standard rate of Plan A, we might think of writing a Fast Formula that can handle all these; however making $10 less, changing the activity type etc is going to be a big task for sure. Oracle offers a solution; a Variable Rate Profiles, popularly known as VAPRO.

Variable Rate Profiles are as good as Rates. They have a set of conditions attached to it, if the condition passes; we consider the profile to be a pass. Now, the Profiles can have almost all types of Calculation Methods, as a Rate would have. So it’s almost the same. However with one difference, they do not have Comp Objects attached to them as the standard rates. They are run based on Conditions. We then attach the profiles to different rates to get different results. The idea is to create one variable profile for each of the requirements. For an example, one for Unpaid LOA people, one for NH participants etc. Then decide the order in which the profiles should have their priority. Once the priority is defined, then we will attach them on the standard rates. The system, while evaluating the rate, will first calculate the standard rate, then will go to the Variable Rate Profiles, it will check the condition on which the profile will pass, if the first one passes, it will take the amount attached to the Profile and return that; if the first one does not satisfy, it will go to the second one, and so on. If none of them pass, the amount on the standard rate will be the final amount. This was just an example related to rates; we can attach a Variable profile to Premiums and Coverage too.

Let's see how to create one. See Figure 6.38 – Variable Rates.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Rate/Coverage Definitions -> Variable Rate Profiles.


 (Figure 6.38 – Variable Rates)

Steps: Create a new record.

 

Name

Name of the Variable Rate Profile

Status

There are four choices like rates:

Active: The profile is active and is being used currently.
Inactive: This profile is not in use now; however it might get reused.
Pending: This profile is not being used now; however it may get used in future.
Closed: This profile is not being used and will never be used in future.

Activity Type

The activity type of the Variable Profile. Acts the same way as explained in Rates.

Tax Type

The Tax type of the Variable Profile. Acts the same way as explained in Rates.

Reference Period

The frequency with which the rate is going to be reported from the Variable Profile.

Treatment

This one is important. There are the following Options:

Add To: The resultant of this Variable Profile will be added to the standard rate to get the Rate Amount.
Multiply By: The standard rate will be multiplied by the amount returned by this Variable Profile.
Replace: Most widely used one. The Rate amount returned by the Variable Profile will be the final Amount.
Subtract From: Similar to the Ad to Example, however it’s just subtracts here. Remember the NH example?

Usages

Where is it going to be used? Premiums / Coverage / Rates?

Assignment to Use

Same as explained in Rates.

Calculation Method

The Calculation Method is more or less same as the Calculation Method in Rates. Different methods need different set of inputs. We must enter the inputs to yield a value.

Always Sum All Participants

In a few Calculation methods, it asks to see the number of Participants. Do not check this flag if we want only those Participants who pass the criteria, to be used in Calculation.

Always Sum All Participant

Similar to the All Participants Flag, it's about the sum of Coverage.

Limits

In few cases, we might want the Variable rate to return amounts based on Boundaries. This is the tab in which we can set up the lower and upper Boundaries.

 

Now it’s time to set up the Conditions for which the variable Profile will pass. We have two ways,

  1. Eligibility Profile: Use Eligibility Profiles to set up the Conditions. These are the usual Eligibility and Rate Profiles created for Participants. Probably now, it would have been clear, why do they call it, Eligibility and Rate Profiles. :)
  2. Criteria: This screen looks exactly the same as Eligibility Profiles. We can just keep on entering the Conditions and that would do the trick.

It is advised to use the Criteria than using the Eligibility Profiles. Eligibility Profiles, if attached here, will create issues while tracing issues related to Participant Eligibility. We will talk more about those in troubleshooting section. However as Eligibility Profiles give us the liberty to use as many Profiles as we want, and again putting them as Mandatory or Option; Criteria are not capable of doing so. All the conditions will have to be summed together in one criterion.


(Figure 6.39 – Variable Rates Criteria)

The Condition of Matching rates work here as well. We can add up the sequence and percentages in the screen to help determining the ER Contribution matches.

Variable Profiles are used very frequently to manage complex rates, coverage and Premium calculations. As we have already created a Variable Profile, let's go attach one in one of the rates. For that, we will have to go to one of the Standard rates where the profile will be attached. And Click on the Variable Rates Button.

The Profiles are added in the Variable Profiles tab, with a sequence number depicting the Priority. The Profiles can be managed with a Start date and end date; hence end dating and date tracking is very much in use. As we had discussed earlier, once the standard rate Value is determined, the system goes on evaluating the conditions related to the entire set of Variable Profiles one by one, starting from the minimum sequence number. The Moment it hits a pass, it calculates the Amount based on the Calculation Method attached to the Variable Profile. It then takes the "Treatment" code and uses it against the Standard Rate value. Similar to Rates, Premiums and Coverage use Variable Profiles too.

Imputed Income

Imputed Income is a concept completely owned and used in US. First of all we need to understand that it has got something to do with Taxes. To explain, what exactly imputed income is, we will first check the bookish definition. It says "An income that may not be seen as cash, but instead comes in the form of a benefit; usually by having someone paying for our expense or sometimes by providing a Benefit."

So the government asks us to pay taxes for the Imputed Income, although it is not a direct form of Income in tax. It’s like someone gave Joe a Benefit as a favour, and Joe pays taxes for that. The Federal Government does not apply taxes on all of it; it does only in certain situations.

Now, let's learn it our way. Joe has a Domestic Partner OK? Now, as per Joe’s employer rules, he can cover his DP in the medical plan. Now Employer pays the Premium and it has an Employer Cost to it. So this is a Benefit that Joe’s Employer pays for Joe’s Domestic Partner. Now this is an example of Imputed Income; and the employee will get taxed for that; not the Employer. Let's go to another example, Joe’s life insurance. The law says, if Joe’s life insurance coverage is more than $50K, and Joe’s employer is paying the premium; in that case any premium that is paid for the excessive of $50k will be taxed against the Employee; not the Employer.

We have learnt about the concepts of Imputed Income, isn't it? Let's learn how to implement it. There will be plans that will be subject to Imputed income, like the life insurance plans, alright? Similarly, we will have to create a Plan type and a Plan for as a placeholder plan for Imputed Income. For one Program, there can be only one Imputed Income Plan; however once an Imputed income plan is created, it can be linked amongst more than one Programs.

Here are the rules for the placeholder plan.

  • It should not have any Eligibility Profiles attached.
  • In the Restrictions Tab, the Imputed Income Type must be chosen based on the type of Imputed Income in Place.

All the other plans, which are subject to Imputed Income, must have a person type chosen in the Subject to Imputed Income field in the general tab. Once the Placeholder plan is defined, we can go and create a Calculation for the same. See Figure 6.40 – Imputed Income.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Rate/Coverage Definitions -> Imputed Income


(Figure 6.40 – Imputed Income)

 

Steps: Create a new record.

Name

Name of the Imputed Income Calculation

Status

The Imputed Income Placeholder plan for which the calculation is being defined.

Activity Type

The activity type of the Imputed Income. Acts the same way as explained in Rates. Preferred: Employee Payroll Imputed Income Distribution

Assignment to Use

Choose the appropriate assignment type to use. Acts the same way as explained in Rates.

Source

This is to identify the source that processes the Imputed Income.

Status

The status of the Imputed Income Calculations is to be chosen. This is similar to the one in Rates.

Process Each Pay Period

Check this, if we want the Payroll system to calculate it each pay period.

Uses Payment Schedule

Check this, if the Payroll system uses a different Payment schedule than the Per Pay Period. If this flag is checked then the Payment schedule can be entered in the Payment schedule button at the bottom of the form.

Wash Rule

We can enter a Wash rule date to impose the wash rule concept of mid-month enrolments.

Element and Input Value Required

This one tells the system that, there is Element links and Input Values in place to manage the Imputed Income entry in Payroll.

Element Entry and Input Value

We can enter the Element name and the related Input value that is going to hold the Imputed Income Value.

Recurring

To update the system, if Imputed Income is going to be a Recurring or a non-recurring random element.

Value Passed to Payroll

This tells the system about the type of amount to be passed to payroll.

Partial Month Determination

If there is a mid-month enrolment, then the Calculation code/ rule are to be entered here.

Foreign Earning or Deduction

This is used, if we are using a Foreign system for Payroll. The type stores if it’s an Earning/ deduction, the ID and the name tell more about the foreign system.

Variable Rates

An Imputed Income Calculation is always driven through the Variable rates attached to it. Usually the Variable rates are based on ages, as the Imputed Income Calculation differs based on the Participant/Dependent's ages. The Variable Profiles are created based on the requirements and then added to the Imputed Income.