How to set up and apply changes to Benefit Schedules in the Sage 100 Payroll module

Description

How to set up Benefit Schedules in the Sage 100 Payroll module
How to apply changes to a Benefit Schedule in the Sage 100 Payroll module

Disclaimer

Backup Warning
Use caution when working with the below product functionality. Always create a backup of your data before proceeding with advanced solutions. If necessary, seek the assistance of a qualified Sage business partner, network administrator, or Sage customer support analyst.

Resolution

There are four conditions that are present in Payroll that pertain to Benefits:

• Hours Eligible = Accrued or Limit Hours + Carry Over Hours
• Available Hours = Hours Eligible – Hours Used
• When based on an annual Limit, benefit hours are not Available until any delays have expired.
• When based on Accrual, benefit hours are not Available until they are both accrued and any delays have expired

Benefit hours can accrue in a variety of ways based on the Payroll Setup Options and Benefit Schedule Maintenance.

In Payroll, Setup, Payroll Options, on the Additional tab:

1. Benefit hours can be based on the annual “Limit” amount, “available” all at once after a possible delay period, or on an “Accrued” basis, where benefit hours are “available” as they are accumulated over time, as dictated by the “Benefit Schedule” associated with the employee. In either case, hours should be accrued at a rate which will normally bring the accrued hours to the annual limit by the end of the year. This is needed to properly compute Carry Over hours at the end of the year.
2. Carry Over and/or Used Hours can be applied to an annual limit, so that (Accrued hours + Carry Over – Used) cannot exceed the annual limit.

In Payroll, Setup, Benefit Schedule Maintenance:

1. The “Accrual Method” determines at what intervals accruals are to be made, Hourly, Daily, Weekly, Per Check, Dollars Paid, or a Fixed amount at year-end:
   • Hourly to accrue benefits during the normal payroll process based on the number of hours worked.
   • Dollars Paid to accrue benefits during the normal payroll process based on wages paid
   • Daily to accrue benefits during the normal payroll process based on days worked
   • Weekly to accrue benefits during the normal payroll process based on weeks worked
   • Checks to accrue benefits during the normal payroll process based on the number of checks issued
   • Fixed to update the total accrued benefit hours per year amount during year-end processing
2. The “Rate Method” can be based on a Fixed multiplier (Accrual Rate) or a Table of Accruals, allowing up to 20 steps based on dates from hire or anniversary.
3. Delay Period can delay the start of accrual of benefit hours by 1 to 999 days after the hire date. Carry Over hours and hours based on annual Limit are not subject to this condition.
4. Eligibility Wait provides an additional delay after benefit hours have been accrued, wait 1 to 12 months before the accrued hours become available for use. Carry Over hours and hours based on annual Limit are not subject to this condition.
5. Eligibility Hours provides that, regardless of the benefit hours accrued or hours eligible based on annual limit, they are not “available” until 1 to 12 months after the hire date. All hours (Carry Over and hours based on Limit or Accrual) are subject to this condition.
6. Max Hrs/Check: Enter the maximum hours per check on which benefit accruals should take place. If not limit set a zero.

Once an employee is attached to a Benefit Code Schedule and any changes are made to the schedule in Benefit Schedule Maintenance the code must be applied to the employee. Use the Apply button to apply to employees on that schedule. **See Additional Information section below for more details.

Glossary Terms

Accrual Rate
Accrual Rate is not a percentage, but rather a multiplier. For a Weekly Accrual Method with a benefit of 40 hours per year, the Accrual Rate is:

• Accrual Rate = Benefit Hours per Year divided by the Number of Accruals per Year (40 / 52 = 0.7692310)

For a Dollars Paid ($) Accrual Method with a benefit of 80 hours per year, the Accrual Rate is:

• Accrual Rate = Benefit Hours per Year divided by the Annual Salary (gross) (80 / 36,000 = .0022222)

Eligible Hours
Hours that have been earned or accrued.
Eligible hours = Accrued or Limit hours + Carry Over hours, where the Accrued or Limit hours are not subject to any delay conditions.

Available Hours
Hours that any applicable delays have expired, and any hours used have been subtracted from hours eligible.

Accrual Method
Determines at what intervals accruals are to be made, Hourly, Daily, Weekly, Per Check, Dollars Paid, or a Fixed amount at year end.

Delay Period
Can delay the start of accrual of benefit hours by 1 to 999 days after the hire or review date as determined in Payroll Options. Carry Over hours and hours based on annual Limit are not subject to this condition.

Eligibility Wait
Provides an additional delay after benefit hours have been accrued, wait 1 to 12 months before the accrued hours become available for use. Carry Over hours and hours based on annual Limit are not subject to this condition.

Eligibility Hours
Provides that, regardless of the benefit hours accrued or hours eligible based on annual limit, they are not “available” until 1 to 12 months after the hire date. All hours (Carry Over and hours based on Limit or Accrual) are subject to this condition.

Max Hrs./Check
Maximum hours per check on which benefit accruals should take place. Leave at zero for no limit.
See related article below, Amounts are not accrued on the Benefits Register, for more details on printing Benefits Register during Payroll Data Entry