Example: Setting up an insurance plan using fixed amounts and expressions

This example shows how to set up a basic life insurance plan with $50,000 of coverage. The insurance company charges $8 a month for each enrolled employee. The employer pays half of this premium and the employee pays the rest. To be eligible for this plan, an employee must be a regular full-time employee and work at least 40 hours a week.

To set up the insurance plan

1. Select Setup > Codes > Employees > Benefits > Insurance Plans.
2. On the Benefit Insurance Plans page for Employer, select DEU (for US sample data) or DEC (for Canadian sample data).
3. Click Add. (If the system asks if you want to use the setup interview, click No.)
4. On the Benefit Insurance Plans Detail page, enter LIFE1 for Code and Basic Life Insurance for Description.

5. On the General tab:

   • For Benefit Type, select Life.
   • For Employee Contribution Frequency, select Monthly.
   • Clear the Benefit Continuable Under COBRA or During LOA check box.

6. Click the Coverage Amount tab and enter the following information:

   • For Coverage Amount, enter 50000 because the life insurance policy provides $50,000 of coverage per employee.
   • For Coverage Amount is For, select Employee and Dependents.

7. Click the Employee Premium tab and enter 8 for Monthly Employee Premium because the insurance company charges $8.00 monthly for each insured employee.

   Note: Because this plan does not cover dependents, you do not need to enter anything on the Dependent Coverage tab or the Dependent Premium tab.

8. Click the Employee Contribution tab and enter the following information:

   • For Employee Contribution Amount, enter Be.b_epremium/2 because the employee pays half of the premium.

     Tip: Even though 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 enter 4. Then, if the insurance company raises the premium from $8 to $10, all you have to do is update the Monthly Employee Premium to 8. Sage HRMS will then automatically calculate the employee contribution to be $5.00.

   • For Employee Contribution Frequency, select Monthly.

9. Click the Standard Eligibility tab and enter the following information:

   • For Salaried/Hourly, select Salary and Hourly.
   • For Employee Type, select Regular Full-Time.
   • For Minimum Age, enter 0.00.
   • For Minimum Hours, enter 40.00 because an employee must work at least 40 hours a week to be eligible.
   • For Min Days Employed, enter 0.
   • Select the Automatically Add To Eligible Employees check box.
10. Click OK.