Benefits Training Day 6a

Never use the “Auto Adjust Based on YTD Amounts” check box as it will mess up the match for any EE that has not deferred from the beginning of the plan year. 

• True

• False

A Forced % Enrollment means

• A default value goes on the Calculations Parameter tab on the deduction code and working in conjunction with the auto-enroll feature will automatically enroll any eligible person with this deferral percentage

• The EE must have a default percentage on his enrollment record when he/she signs up

• The HR Admin must go in and manually enroll every single person with the same deferral percentage.

• You can only force the deferral. Any type of Match must be manually entered

You can easily setup an eligibility filter using “Normal Hours” under the EE Payroll section to determine if an EE meets the eligibility requirement of having worked 1000 hours.

• True

• False

An Eligible Wage Plan Match only works if the EE has a deferral as well.

• True

• False

You do not need to use the Match Eligibility tab unless you have multiple matches or the single match you have does not have the same eligibility as the plan.  

• True

• False

The Payroll Implementation Specialist will most likely set up a 401(k) “shell” because

• They do not believe you are capable of doing it correctly.

• Percentage deferrals and contributions will not work without a Deferred Comp plan set up.

• The customer asked them to.

• All of the above.

The Export Code field on the Plans tab of the Deferred Comp plan is required because

• It is needed for eBN Carrier Connections

• It is needed for COBRA

• It is actually not required

• The match codes will not work without it.

Which of the following is false

• You must use a payment option of ACH Payment or Combined Check so the funds from all EEs will go together in a lump sum.

• There is a concern with using the third party payee for a Deferred Comp plan that the funds will get to the carrier before the data and they will be rejected because the carrier does not know how to disburse them.

• There is no pre-note ability with Third Party ACH payment, so you have to make sure you get the account number correct the first time.

• When you put the Third Party in the Provider field, it will send the funds to the Deferred Comp carrier.

Evaluate the following Tiered Match statement:  Match is: First 2% @ 100%, next 2% @ 50%, final 3% @ 25%.

• This is an example of an Eligible Wage Plan Match.

• If an EE were to defer 2%, he would get 100% Match.

• If an EE were to defer 10% he would get 25% match on the last 2 percent of his deferral.

• This tiered match statement would not work. There are too many levels.

Auto-Enroll (to add a blank enrollment record on the EE level) is used mostly with the “shell” setup because:

• Forced percentage enrollments need it.

• Eligible Wage Plan matches need it.

• A blank enrollment record is needed to make the straight deductions work.

• All of the above.

You will build your Match memo calcs under the Payroll\Memo Calcs section.

• True

• False

Whether the deductions are run from Payroll or from the Benefits module, the EE will always need a Deferred Comp enrollment record.

• True

• False

If you do not check the “Limit to Specified Deductions” box and the appropriate sub- boxes every time, the match will not calculate on the deferral.

• True

• False

Fill in the blank:  An EE may                         continue contributing to a Deferred Comp after he/she has taken out a loan.

• Always

• Never

• Sometimes (depends on the client’s contract with the carrier).

• During a personal financial emergency,

Regarding multiple Deferred Comp plans on the same Deferred Comp benefit type, one could say:

• There really isn't a problem doing it.

• It is just like setting up an HMO medical plan and a PPO medical plan under the Pre-tax Medical benefit type, so it is actually recommended to do it this way.

• Do it only when you need to use multiple deduction codes including 401(k) loans.

• If you do it, the EE CANNOT be enrolled in multiple plans under the same benefit types. The system kicks you out or terms one of the plans.

Which of the following is not true

• You can create multiple Deferred Comp benefit types on the company level.

• You can create multiple Deferred Comp plans from that one benefit type, but you shouldn't.

• You may use multiple Deduction Codes on the same Deferred Comp Plan.

• You may have multiple Matches (memo calcs) on the same Deferred Comp Plan.

If you are doing a full setup, you will need to check the 401(k) Loan Deductions boxes on the Plans Deduction section of the Plans tab of the Deferred Comp plan, because 401(k) loans  can directly affect your reporting even though they are managed through Payroll.

• True

• False

Which of the following are not setup under Deferred Comp

• 403(b)

• Pension Plans

• Profit Sharing

• All of the above are set up under Deferred Comp

Please set up a 401(k) plan that includes both 401(k) and 401(k) Roth. The carrier is Principal.  They want the contributions and deferrals to be ACH’ed to them.  Set up the payee and use a routing # from your bank.  Make up an account number.  You will have two EE Contribution Plan Matches, one for regular EEs that has a tiered match of First 1% @ 100%, next 2% @ 50% and the last 3% at 25%.  The second match for executives has one tier.  First 4% at 100%.  The company also has an Eligible Wage Plan Match (Safe Harbor) Match of 3%.  It will go to all EEs.   EE deferrals begin first day of the month after 6 months from their hire date with a forced deferral of 3% unless they opt out or choose a different amount.  The client wants this to happen automatically.  Matches begin on the first day of the month following 1 year from their hire date.  Start date of the plan was 1/1/2013.  Use all eligible wage earnings you have except any reimbursement type earnings.  Do not use any Eligible Wage Memo Calcs  nor any Eligible Wage Reductions. Three of the EEs have loans. The client tells you that 2 of them are first time loans and one of them is on his third loan. Please email screen shots to your presenter.