Setting Up Deduction Start Dates

When an employee enrolls in a benefit plan, the deduction typically starts on the first day of the following month. The system sets the start date in this way so the deduction amount associated with the benefit plan is always for a full month.

For example, if an employee enrolls in the month of January, deductions begin on February 1st, and the company creates a benefit billing adjustment for January. The system adjusts the amount for the actual number of days that the employee was covered.

Note:  Some plans allow mid-month enrollment, which means coverage may start on any day of the month.

Deduction start dates begin on the first day of the following month with benefit adjustments when either of the following are true:

•

The coverage start date for the benefit plan is before the current date.

For example, if an employee enrolls on 01/11/2017 in a benefit plan that has a coverage start date of 01/01/2017, the system sets the deduction start date for the benefit plan to 02/01/2017.

•

A payroll batch has been created with a pay date that is after the coverage start date.

For example, if an employee enrolls in a benefit plan that has a coverage start date of 01/01/2017, and a payroll batch is already created for the month of January, the system sets the deduction start date for the benefit plan to 02/01/2017.

In both of these scenarios, benefit adjustments are created to cover the deductions for the month of January. Benefit adjustments are based on the pay period for benefit billing frequency and payroll deduction frequency, even if the plan has designated a monthly benefit billing frequency.

Changing Deduction Start Dates and Benefit Adjustments

The recommended best practice is to enroll the employee in benefits prior to their effective date, and use the system defaults for deduction start date and benefit adjustments.

You can, however, modify the deduction start date and/or benefit adjustments as follows:

To modify ...	Procedure
The Employee Contribution amount or the deduction Start Date in the Benefit Adjustment form.	For more information, see the Human Resources User Guide.
The deduction start date when you have already processed the first batch of the month.	• Go to Payroll Control and delete that batch. • Delete the employee's benefit enrollment and re-enter it with the adjusted start date. • Re-create your batch. (This will have to be done for every plan for every employee.)
The deduction start date when you have not processed the first batch of the month.	• Go to Employee Benefit Enrollment and delete the employee's enrollment record. • Re-enter the employee's enrollment with the status set to E for eligible instead of A for active. Set the coverage and deduction start dates to the dates you want to use. • Click Save to save the record. • Change the employee's status from A to E and enroll as usual. (This will have to be done for every plan for every employee.)