Calculate Benefits

Select this checkbox in the Salary and Fringe Calculation page to calculate benefit amounts for employees and vacant positions.

• The benefit calculations are based on the budgeted annual salary, which includes current, mid-year, and budget year increases, as well as special pays.
• If a rate's pay code exempts a particular benefit, the benefit amount is not calculated.

You may repeat this process as many times as needed. If you recalculate benefits for the same employees and positions, the new calculations replace any existing ones.

Important

To ensure that the budgeted benefit amounts are calculated accurately, run the Calculate Benefits option after the Calculate Salaries option and before the Calculate FICA and Calculate Workers' Comp options.

Menu Path:  Personnel Budgeting > Entry & Processing > Personnel Budgeting > Salary and Fringe Calculation. For the general procedure to follow, refer to Salary and Fringe Calculation.

Calculating Benefit Increases

Personnel Budgeting stores benefit records differently depending on whether Position Control is installed:

Benefits are calculated based on the budgeted annual salary, which includes current and new year increases, midyear increases, special pays, and if it applies, an additional amount (Additional Gross). Rates with pay codes that are exempt from certain benefits are not used in calculating the benefits' budgeted amounts.
The amount calculated appears in the Budgeted Amount field of the Employee Benefit Listing Page. You also can view the results by running the Employee Benefit Report.

Important

Before running your calculations, verify that the Number of Pays fields in the Benefit table have been updated for amount benefits. When benefit records are extracted, this field defaults to zero.

Flat Amount Increases

Amount increases are calculated using the number of pays specified in the Benefit table and the amount of the benefit taken from either the employee record (S - Amount from Employee Record benefit method) or Benefit table (A - Amount from Table Record benefit method).

Number of Pays x Benefit Amount = Budgeted Benefit Amount

PercentageBased Increases

Most percentage increases are calculated using the budgeted salary and the benefit rate from either the employee record (R - % from Employee Record benefit method) or Benefit table (P - % from Table Record benefit method).

Budgeted Annual Salary x Benefit Rate = Budgeted Benefit Amount

Subjective Gross in Calculations

The Benefit table's Subjective Gross field determines which gross to use for calculating the benefit gross, when the table's Benefit Method is set to P - % from Table Record, R - % from Employee Record, or M - % Plus Additional Amount. In most cases, the Subjective Gross should be set to SP - Subject Tax Gross, unless you have special circumstances that would require using FI - FICA Tax Gross or MD - Medicare Tax Gross.

The Budgeted Benefit Amount may have a maximum amount, depending on whether a value displays in the Maximum Benefit field of the Employee Benefit Listing page. If an amount is entered and the total budgeted amount exceeds this, the system sets the budgeted amount to the maximum allowed.