If an employer allots specific dollar amounts to employees for their benefits this can be set up by using a Benefit Allowance plan type. It is best practice to add this plan type last so all eligible plan types can be included in the setup.  


1.  Add the plan in the Benefits page in the Actions menu by choosing Benefit Allowance as the plan type, enter in requested details then click Add Plan.



2.  On the Eligibility tab, enter any LOCATIONS, DIVISIONS, DEPARTMENTS, or JOB CLASSES that this Benefit Allowance will apply to. If it applies to all employees there is no need to populate these fields. The system is set to require enrollment in this plan and will automatically enroll eligible employees in it if nothing is selected.




3.  On the Contributions tab select the AVAILABLE PLAN TYPES from the drop menu. This will determine which plan types the allowance can be applied to. Next, select the appropriate type of BENEFIT ALLOWANCE TYPE. The options are as follows:


Example: Company gives employees $500 per month to spend on their benefits with a 50% cash back option.  


All Members - this Benefit Allowance will be applied to all members enrolling in coverage. A flat dollar amount or percentage of salary can be entered into the Employee field under Allowance ($). If a percentage is being entered, an Employee Max can be specified if there is a cap on how much the employer will contribute, for example, 10% of salary up to $300. If the employee can take any remaining contribution amount as cash back to their paycheck enter in the Max Cash Back ($/%) amount as a dollar or percentage.



Example: Company gives employees $300 for employees and $150 for dependent coverage.  


Employee + Dependents - this Benefit Allowance has specified amounts applied to employee and dependent coverage.  Dependents are defined as spouse and child(ren) combined. In the Employee field under Allowance ($) enter the dollar amount or percentage of salary to be applied toward the employee benefit. If the employer is giving a percentage of salary, the maximum contribution should be added on the Employee Max line, if applicable. On the Dependents field under Allowance ($), enter the dollar amount to be applied towards spouse/children coverage. If the employee can take any remaining employee or dependent contribution amount as cash back to their paycheck enter in the Max Cash Back ($/%) amount as a dollar or percentage next to the Employee or Dependents option.




Example: Company gives employees $250 for employees, $200 for spouse coverage, and $100 for children coverage.  


Employee + Spouse + Children - this Benefit Allowance has specified amounts for employee, spouse, and children coverage. In the Employee field under Allowance ($), enter the dollar amount or percentage of salary to be applied toward the employee benefit. If the employer is giving a percentage of salary, the maximum contribution should be added in the Employee Max field, if applicable. In the Spouse field, enter the dollar amount to be applied towards spouse coverage. In the Children field, enter in the dollar amount to be applied towards children coverage. If the employee can take any remaining employee, spouse, or children contribution amount as cash back to their paycheck, enter in the Max Cash Back ($/%) amount as a dollar or percentage.



Example: Company gives employees $200 for employee only, $400 for employee+spouse, $600 for employee+child(ren), or $800 for employee+family  


Tier - This Benefit Allowance has specified amounts that are based on tiers. The tiers are determined by one of the following options:


Employee Profile - monies will be assigned based on dependents listed on the employee's profile 

Enrollment In - monies will be assigned based on enrollment in a specified plan type (e.g., Medical)

Eligibility In - monies will be assigned based on eligibility in a certain plan type (e.g., Medical)

Plans based on Enrollment In or Eligibility In will need to have the plan type assigned in order for the allowance to work as expected.



In the Allowance ($) field next to each tier, enter the dollar amount to be applied toward the employee benefit. If the employee can take any remaining contribution amount as cash back to their paycheck, enter in the Max Cash Back ($/%) amount as a dollar or percentage.








Select the USE ADJUSTMENT FACTOR option in the Contributions page if the Benefit Allowance amount would be prorated based on an employee's FTE (Full-Time Equivalent) status. Then enter the FTE status in the BENEFIT COST FACTOR field in the Employees > Coverage page. The Benefit Allowance will then be prorated by that amount. 


Example: Benefit Allowance is $500. If an employee has a .9 FTE status the $500 would be recalculated to a Benefit Allowance of $450. ($500 * .9 = $450).





4.  Enrollment forms are not required since this is not a carrier administered benefit. The Universal Costs form can be added if preferred. 

5.  Reference material about the Benefit Allowance or Defined Contribution plan can be added on the Documents tab.

Upon login the employee will be shown the per pay amount of allowance as well as each benefit it can be applied to:

All Members Allowance:


Employee + Dependents Allowance:



Employee + Spouse + Children Allowance



Tier Allowance based on Employee Profile - Employee has herself and a spouse on her profile


Tier Allowance based on Enrollment In Medical - Employee has family coverage in medical. Note, system will default to employee only allowance amount until employee enrolls in specified plan.





Tier Allowance based on Eligibility In Medical - All dependents are eligible for medical coverage





A running total of the Benefit Allowance as well as employee per pay cost will be shown on the right side of the screen.  It will detail the available Benefit Allowance amount, how much has been applied, how much is remaining, as well as the available cash back (if applicable). The example below shows an employee that has a $500 monthly Benefit Allowance with a 50% cash back maximum electing a medical plan that has a cost of $10 per pay period:



Important items to remember: An employee can only be enrolled in one Benefit Allowance.  Be sure that all employees have the appropriate classes assigned on their profile should there be different classes of eligibilities set up (e.g., job class, location) on the Benefit Allowance. The system will not look at remaining pay periods for this plan type.


Setting up contributions on the actual plans will vary based on the company rules. The most common setup will likely be an Employer contribution of $0 or an Employee contribution of 100%. 




If the employer is contributing an additional amount towards the benefits, those amounts can be entered as usual on the Contributions tab. We recommend adding a test employee and testing to be sure the Benefit Allowance and employer contribution amounts calculate as needed for the client.