After you set up your benefit types and the optional benefit rate tables, you are ready to set up your savings plans. The Benefit Savings Plans page contains codes, descriptions and data for every savings plan your employer provides. An example is a 401(k). After you set up the plan, Sage HRMS will automatically calculate both the employee contributions and the employer matches.
When the employee’s contribution falls between the ranges, Sage HRMS will use the next rate in the table for the employer match. For example, an employer matches 100% of the first 4%, 50% of the next 2%, and 25% of the remaining 2%. If an employee contributes 7%, Sage HRMS uses 100% for the match on the first 4%, 50% on the next 2% and 25% on the remaining 1%.
Before you set up a savings plan, we recommend you review Rules for Benefit Plan Data and Calculations.
Use the sample information to guide you through defining your savings plan information. Refer to To Set Up a Savings Plan Using a Rate Table for a sample of setting up a 401(K) savings plan.
Sage ESS
If you are using Sage ESS, you should never change or delete a savings plan that is currently in use in a life event or attached to a life event that has not yet been transferred to Sage HRMS.
To Set Up a Benefit Savings Plan
Steps to for setting up a benefit savings plan.
- Select Setup > Employees > Benefits > Savings Plans.
- Select the level at which
you want to set up the plan. Select Enterprise or a specific employer from the Employer list. Use the following information
to help you decide:
- If you want the plan to only be available to a specific employer, select the Employer.
- If you want the plan to be available to all employers, select Enterprise.
- If you are using Sage ESS for Benefits Enrollment and you want the same plan to be available to multiple employers, but you want different open enrollment periods for each employer, you must set up a separate employer-level plan for each employer.
- If you are using Sage ESS for Benefits Enrollment, you must set up all insurance and savings plans at the same level, either Enterprise or Employer.
- Click (if the setup interview dialog box displays, click ). The Benefits Savings Plans Detail page opens. To create a new savings plan from an existing plan, click Copy.
- In the Code field, enter
a code to represent the plan. This
code uniquely identifies the group benefit plan.
Note: Do not use special characters to define the code, specifically single quote ( ' ), percentage sign ( % ), and underscore ( _ ).
- In the Description field, enter a longer description of the plan you are setting up. This description will appear as a selection on the employees Savings Benefits page. It will also print on benefit statement reports, such as the Benefit Enrollment by Plan and Benefit Premium Totals by Plan.
- From the Benefits Savings Plans Detail page you will:
- Define general information about the plan, including the type of employer contribution and the amount of the employer contribution
- Define eligibility requirements
- After you have entered all your savings benefit plan information, click . Sage HRMS asks if you want to update the employee benefit file with the new calculations. Click to update the employee benefit file and then click when Sage HRMS completes the update.
- Set Up the Plan as an Open Enrollment Plan (optional) - If you also use Sage ESS for Benefits Enrollment and you want this plan to be available to your employees for open enrollment or life events, go to Set Up Open Enrollment Savings Plan for instructions.
From the Benefits Savings Plans Detail page you can
Define General Information
The General Information tab contains the following fields.
| Field Label | Field Description |
|---|---|
| Employer Contribution Type |
Indicate whether your employer expresses its contribution to the savings plan as a percentage or a dollar amount. Some points to consider:
|
| Employer Contribution Per Pay Period | From the list of Available Rate Tables, double-click the appropriate rate table. Sage HRMS displays it in the Employer Contribution Per Pay Period field. |
| Plan Is In Effect |
Indicate when this plan is being offered. Employer contributions to the plan cannot start before the beginning of the plan's Effective Period, and will automatically expire at the end of the plans Effective Period. If you do not want any restrictions as to when employees can be covered by this plan, leave the dates blank. If you are using Sage ESS for benefits enrollment, you must provide a From and To date regardless of whether the plan will be used for open enrollment or life events. |
| Employer Match Went Into Effect On | Enter the date the employer match goes into effect. |
Define Eligibility Requirements
Perhaps not every employee is eligible to participate in every plan. The eligibility requirements you set up for a savings plan define which employees are eligible and which are not. After you define eligibility, you can tell Sage HRMS to automatically add the benefit to all eligible employees. If all employees are eligible for the plan, leave the fields blank. Refer to your employer’s policies for eligibility requirements.
The Standard Eligibility tab contains the following fields.
| Field Label | Field Description |
|---|---|
| Salaried/Hourly | Indicate which employees are eligible for this plan. Select a default value from the drop down list: Salary, Hourly, or Salary and Hourly. |
| Employee Type | Use this field to limit eligibility to Regular Full-Time, Regular Part-Time, or any other employee type you defined in the Employee Type code table. If you select , the benefit plan applies to employees of all status codes. |
| Minimum Age | The start date for the benefit becomes the date on which the employee reaches minimum age. |
| Minimum Hours | This field can limit a benefit plan to employees who work at least a specified number of hours, or units per pay frequency. Sage HRMS compares this field to the field on the Current Pay page. |
| Minimum Days Employed | The effective start date for the benefit is the date the employee reaches the minimum number of days employed. Entering zero means the benefit requires no minimum days employed, and employees are eligible on the first day of the following month. |
| Automatically Add to Eligible Employees |
Indicate whether to have Sage HRMS add the benefit to all who meet all the eligibility requirements (both Standard and Custom). When you have finished setting up the plan, click to save the data. Sage HRMS then proceeds to add the benefit to eligible employees. Here are some points to consider when you check this box:
|
If you need to enter additional eligibility criteria, click the tab. You can enter an expression or use the Expression Builder to specify even more precisely those employees eligible for the benefit plan. For instance, Sage HRMS will exclude Regular Part Time employees if you enter the expression, PE.P_EMPLOY<>"RPT".
Complete the Process
After you've entered all your savings benefit plan information, click . Sage HRMS asks if you want to update the employee benefit file with the new calculations.
Click to update the employee benefit file and then click when Sage HRMS completes the update.
Note: To enroll an employee in a savings benefit plan, open the employee’s Savings Benefits page, click , then enter the appropriate information for the employee.
Set Up the Plan as an Open Enrollment Plan
If you also use Sage ESS for Benefits Enrollment and you want this plan to be available to your employees for open enrollment or life events, go to Set Up Open Enrollment Savings Plans for instructions.
Set Up Benefit Savings Plan Groups
A savings plans group enables you to combine savings plans so that the employer match contribution is calculated from the combination of the savings plans. Learn how to Set up Benefit Savings Plans Groups.