Assigning Earnings, ACA, and Deduction/Liability Codes to Benefits

Use the HR Benefits Codes form to set up and define benefit codes, which identify a type of benefit. Benefit code examples might be life insurance, health insurance, disability insurance, 401(k), and so forth.

When setting up benefit codes, use the Earnings Codes and Deduction/Liability Codes tabs to define any earning, deductions, and/or liabilities associated with the benefit.

To assign earnings, ACA, and deduction/liability codes to benefits:

  1. Open the HR Benefits Codes form.
  2. On the Info tab, enter benefit information.
    Note: For ACA purposes, complete the ACA section of the Info tab to indicate that the benefit code is an ACA health plan. If so, indicate if the benefit code conforms to minimum essential coverage (MEC) as per ACA guidelines and if ACA health plan is self-insured.
  3. If you need to describe benefit options, including designating ACA coverage for self, self+spouse, self+dependents, etc., complete the Benefit Options tab.
  4. Select either the Earnings Codes or Deduction/Liability codes tab and enter a code in the Earning Code or DL Code field.
  5. Enter a benefit option in the Option field.
    Note: The Option field allows you to use an earnings or deduction/liability code multiple times for defining multiple rates. For example, you might define a medical plan with three coverage levels, each one having a different rate.
  6. Enter a frequency in the Frequency field.
    Note: Frequency codes are required for earnings codes, but are optional for deductions and liabilities. If you assign frequency codes to deductions and/or liabilities, assign the deduction or liability a Calculation Category of ‘E-Employee’ or ‘A-Any’ in PR Deductions/Liabilities. When you add a benefit for a resource in HR Resource Benefits (either manually or via initialization), the system will check the Employee-Based box for all deductions and liabilities.
  7. Enter the benefit rate in the New Rate field.
    Note: If a rate already exists in the New Rate field, select File > Move New Rates to Old before entering a rate in the New Rate field. This allows the system to use the current rate until the New Rate goes into effect (based on the Effective Date field). When using this option, the rates for all earnings and deduction liabilities codes change. If you only need to change a few rates, enter the old rate manually.
  8. Enter an effective date for the new rate in the Effective Date field.
  9. Save the record.
    Note: Do not check the Updated YN box to have the system update employees/resources when you update resource benefits. If you select this box, changes will not update to any resources. For more information on updating resource benefits, see the “Updating Resource Benefits Globally” section below.

    Once benefit codes are set up, you can assign them to benefit groups in HR Benefit Groups. For more information, refer to HR Benefit Groups in Related Topics below.