To Set Up an Insurance Plan Using Fixed Amounts and Expressions

This example shows you how to set up a simple group benefit plan for a basic life insurance. The sample employer offers this life insurance plan as part of a 125 cafeteria plan. The plan provides $50,000 of coverage for each employee and the insurance company charges $8 a month for each enrolled employee. The employer pays half of this premium and the employee is responsible for the rest.

1. Select Setup > Employees > Benefits > Insurance Plans. The Benefit Insurance Plans page opens for the enterprise.
2. Select DEU (or DEC for Canadian sample data) from the Employer list. Click Add. The setup interview dialog box displays.
3. Click No. The Benefits Insurance Plans Detail page opens.
4. Enter LIFE1 as the Code, enter Basic Life Insurance as the Description.
5. On the General tab, from the Benefit Type list select Life.
6. Select Monthlyas the Employee Contribution Frequency.
• For this example, do not select the Benefit Continuable Under COBRA check box, since this life insurance plan is not continuable under COBRA.
7. Click the Coverage Amount tab.
   • Since the life insurance policy for our example provides $50,000 of coverage per employee, enter 50000 in the Coverage Amount field. Accept the default in the Coverage Amount is For field as Employee and Dependents.
8. Click the Employee Premium tab.
   • For our example, the monthly insurance billing statement charges $8.00 for each insured employee, so enter 8 in the Monthly Employee Premium field.
9. Click the Dependent Premium tab.
   • Because our life insurance plan does not cover dependents, enter 0.00 in the Monthly Dependent Premium field. Accept the default in the Premium Amount Represents field as Premium For Each Individual Dependent.
10. Click the Dependent Coverage tab.
    • Because our life insurance plan does not cover dependents, enter 0.00 in the Monthly Dependent Coverage field. Accept the default in the Coverage Amount Represents field as Coverage For Each Individual Dependent.
11. Click the Employee Contribution tab.
• Because the employee pays half of the premium for our sample life insurance plan, enter the following expression to calculate half of the amount charged for the employee's premium: Be.b_epremium/2

  Tip: Even though we know that half of $8.00 (the employee premium) is $4.00 (the employee contribution), we recommend you enter an expression to calculate the amount, rather than $4.00. Then, if the insurance company raises the premium rates from $8 to $10, all you have to do is update the Monthly Employee Premium field to 10. Sage HRMS will read the expression and calculate the employee contribution as half of the employee premium: $5.00.

• Because premiums are monthly, in the Employee Contribution Frequency field, select Monthly.
12. Click the Standard Eligibility tab. The following steps define eligibility requirements for our sample life insurance plan: only Regular Full-Time employees who work at least 40 hours a week are eligible.
1. Accept the default Salary and Hourly for our example.
2. Select Regular Full-Time for our example.
3. For our example, enter 0.00. This means there is no minimum age requirement.
4. For our example, enter 40.00 in this field.
5. Accept the default of 0 for our example.
6. For our example, select Original Hire Date, Day, and 0 months. This means if the employee was hired on September 5, 2007, this life insurance plan will start on the same day (9/5/07).
7. Check the Automatically Add To Eligible Employees box.
13. Click OK.

Published: May 17, 2017
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