Setting up benefit savings plans

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 a table with the codes, descriptions, and data for every savings plan that is set up for the employer, such as a 401(k) retirement savings plan. Sage HRMS automatically calculates both the employee contributions and the employer matches for the plans.

Tip: Before you set up a savings plan, we recommend you review the Rules for benefit plan data and calculations. Use the sample information to guide you through the setup. See Example: Setting up a savings plan using a rate table for a example of setting up a 401(k) savings plan.

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%.

Caution! 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 add a benefit savings plan:

1. Select Setup > Codes > Employees > Benefits > Savings Plans.

2. On the Benefit Savings Plans page for Employer, select the level at which you want to set up the plan. Select Enterprise or a specific employer. Considerations...

   • If you want the plan to be available to all employers, select Enterprise.
   • If you want the plan to only be available to a specific employer, select the name of the employer.
   • 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.

3. The table on the Benefit Savings Plans page shows the savings plans that are already set up.

   Click Add to add a new plan. (If the system asks if you want to use the setup interview, click No.)

4. On the Benefit Savings Plans Detail page:

   1. For Code, type the code you want to use to uniquely identify the savings benefit plan.

      Note: Do not use special characters for the code, such as single quote ( ' ), percentage sign ( % ), or underscore ( _ ).

   2. For Description, type a longer description for the plan. This description appears as a selection on the employee's Savings Benefits page and prints on benefit statement reports (such as the Benefit Enrollment by Plan and Benefit Premium Totals by Plan reports).

5. On the General tab, enter information about the employer contribution. Details...

   Items on this tab

   Item	Description
   Employer Contribution Type	Choose the type of employer contribution to the savings plan: Amount. The employer contributes a dollar amount. If it is a fixed dollar amount, enter the amount for Employer Contribution Per Pay Period. If the employer contribution amount varies with the percentage the employee contributes, build an expression or choose a rate table for the employer amount. Percent. The employer contributes a percentage of the employee contribution. If it is a fixed percentage, enter the employer contribution percentage for Employer Contribution Per Pay Period. If the employer contribution varies with the percentage the employee contributes, build an expression or choose a rate table for the employer contribution.
   Employer Calc. Method	If Percent is selected for Employer Contribution Type, choose either: Percentage of Base. (Default) Calculates the match using the employee's base amount. Percentage of Employee Contribution. Calculates the match using the employee's contribution amount. This ensures that the employer match stops if the employee's contribution reaches the contribution limit (such as for a 401k) or if the employee stops contributing to the plan.
   Sync to Payroll as % of Employee Contribution	If Percentage of Base is selected for Employer Calc Method, select this check box to automatically sync the percentage contribution to Payroll.
   Employer Contribution Per Pay Period	Enter one of the following: If Amount is selected for Employer Contribution Type, you can type the dollar amount for one pay period. If Percent is selected for Employer Contribution Type, you can type the percent to use for the employer contribution calculation. If you want to use a rate table for the employer contribution calculation, double-click the appropriate rate table in the list of Available Rate Tables to display the rate table code for this item. To create an expression to use for the employer contribution calculation, click Expression Builder, create the expression, and then click OK.
   Available Rate Tables	To use a rate table for the employer contribution calculation, double-click the appropriate rate table. It then displays for Employer Contribution Per Pay Period.
   Expression Builder	To create an expression to use for the employer contribution calculation, click this button to open the Expression Builder window. After you create the expression and click OK, the expression displays for Employer Contribution Per Pay Period. See Using the Expression Builder for more information.
   Plan Is In Effect From __ To __	(Optional) If the plan is only in effect for a certain effective period, enter the start and end dates. 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. Note: If you are using Sage ESS for benefits enrollment, you must provide both From and To dates.
   Inactive	This check box is automatically selected if the savings plan is not currently active based on the plan's effective dates.
   Employer Match Went Into Effect On __	(Optional) If the plan has an employer match, enter the enter the date the employer match went into effect.

6. (Only available for the subscription version of HRMS) If the savings plan will include a default contribution for employees, specify the settings on the Employee Contribution tab. Details...

   Items on this tab

   Item	Description
   Employee Contribution Type	Choose the type of employee contribution to the savings plan: Amount. The employee contributes a dollar amount. If it is a fixed dollar amount, enter the amount for Employee Contribution Per Pay Period. If the employee contribution amount varies with the percentage the employee contributes, build an expression for the savings plan or choose a rate table for the employer amount. Percent. The employee contributes a percentage of the their pay. If it is a fixed percentage, enter the employer contribution percentage in the field. If the employer contribution varies with the percentage the employee contributes, build an expression for the savings plan or choose a rate table to define the employer amount.
   Employee Contribution Per Pay Period	Enter one of the following: If Amount is selected for Employee Contribution Type, you can type the dollar amount for one pay period. If Percent is selected for Employee Contribution Type, you can type the percent to use for the employee contribution calculation. If you want to use a rate table for the employee contribution calculation, double-click the appropriate rate table in the list of Available Rate Tables to display the rate table code for this item. To create an expression to use for the employee contribution calculation, click Expression Builder, create the expression, and then click OK.
   Available Rate Tables	To use a rate table for the employee contribution calculation, double-click the appropriate rate table. It then displays for Employee Contribution Per Pay Period.
   Expression Builder	To create an expression to use for the employee contribution calculation, click this button to open the Expression Builder window. After you create the expression and click OK, the expression displays for Employee Contribution Per Pay Period. See Using the Expression Builder for more information.

   Note: This default employee contribution can be changed for an individual employee on the Employee Contribution tab of that employee's Savings Benefits page.

7. If only certain employees are eligible to participate in the plan, select the eligibility requirements (which an employee must meet to be included in the plan) on the Standard Eligibility tab. If all employees are eligible for the plan, do not make changes on this tab. Refer to your employer’s policies for eligibility requirements. Details...

   Items on this tab

   Item	Description
   Salaried/Hourly	Select which employees are eligible for this plan: Salary, Hourly, or Salary and Hourly (all employees).
   Employee Type	To limit eligibility to employees with a particular type (such as Regular Full-Time or any other employee type set up in the Employee Type code table), select the type. Select None Specified if the benefit plan is not limited by employee type.
   Minimum Age	To limit eligibility to employees above a certain age, specify that age. The start date for the benefit becomes the date on which the employee reaches this minimum age. Enter 0.00 if this is not a requirement.
   Minimum Hours	To limit eligibility to employees who work at least a certain number of hours or units per pay period, specify those hours. Sage HRMS compares this number to the Hours/Units on their Current Pay page. Enter 0.00 if this is not a requirement.
   Minimum Days Employed	To limit eligibility to employees who have been with the employer at least a certain number of days, specify the number of days. The effective start date for the benefit is the date the employee reaches the minimum number of days employed. Enter 0 if this is not a requirement. A new employee becomes eligible on the first day of the following month.
   Automatically Add to Eligible Employees	Select this check box to have Sage HRMS automatically add the benefit plan to all active employees who meet all the eligibility requirements (both Standard and Custom) when you click OK to save the plan. An active employee has an Employee Status of Active on their Current Job page. (Sage HRMS will not automatically add benefits to employees who are terminated, on a leave of absence, or classified as COBRA dependents.) When you add new active employees, Sage HRMS assigns the benefit if they meet the eligibility requirements. Tip: If you set eligibility criteria incorrectly and direct Sage HRMS to automatically add the benefit to the wrong group of employees, delete the benefit code from  all employees. You can then re-enter the benefit code and specify a different group of employees.

8. If you need to enter additional eligibility criteria to specify more precisely those employees eligible for the benefit plan:

   1. Click the Custom Eligibility tab.

   2. For Eligibility Expression, either type an expression or click the Expression Builder button, create the expression, and click OK.

      For example, Sage HRMS will exclude Regular Part Time employees if you enter the following expression: PE.P_EMPLOY<>"RPT"

9. When you finish entering the savings benefit plan information, click OK.
10. When Sage HRMS asks if you want to update the employee benefit file with the new calculations, click Yes. When Sage HRMS completes the update, click OK.
11. (Optional) 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, see Selecting open enrollment savings plans .

Copying a benefit savings plan

To create a new savings plan from an existing plan, see Copying a benefit plan.

Enrolling employees

To enroll an employee in a savings benefit plan, open the employee’s Savings Benefits page, click Add, then enter the appropriate information for the employee.

Setting 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. See Benefit savings plan groups.