Benefit elements (form) [AX 2012]

Updated: March 7, 2014

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click Human resources > Setup > Benefits > Benefit elements.

–or–

Click Payroll > Setup > Benefits > Benefit elements.

Use this form to set up current and future benefits that workers and their dependents and beneficiaries can receive.

NoteNote

This topic has been updated to include information about features that were added or changed for cumulative update 6 and cumulative update 7 for Microsoft Dynamics AX 2012 R2. This information applies to CU6, CU7, and later cumulative updates. This information also applies to AX 2012 R3.

Set up benefits: This topic applies only to versions that were released before Microsoft Dynamics AX 2012 R2.

Benefit setup tasks: This topic applies only to Payroll for Microsoft Dynamics AX 2012.

Create a new benefit: Use this topic if you have installed Microsoft Dynamics AX 2012 R2 and if you are not using Payroll for Microsoft Dynamics AX 2012.

The following tables provide descriptions for the controls in this form.

Links

Description

Types

Create or delete benefit types. A benefit type, such as medical or parking, contains a set of related benefit plans.

Plans

Create or update benefit plans and assign options to plans. A benefit plan is a specific benefit that a provider is contracted to offer.

NoteNote

If you are using Microsoft Dynamics AX 2012 R2, options are assigned to plans when you create the benefit. For more information, see Benefit setup tasks.

Options

Create or update benefit options, such as employee only or employee and spouse. Benefit options are the coverage levels that are enabled by a benefit plan.

Button

Description

New

Create a new type, plan, or option.

Delete

Delete the selected plan, type, or option.

Add

Add an existing option to the selected plan.

ImportantImportant

This control is not used in Microsoft Dynamics AX 2012 R2. Instead, options are added to plans when you create the benefit. For more information, see Benefit setup tasks.

Remove

Remove the selected option from the plan.

ImportantImportant

This control is not used in Microsoft Dynamics AX 2012 R2. Instead, options are removed from a plan by removing the benefit that is the combination of that plan and option. This is performed in the Benefits form.

Date options

Open the Change date options form, where you can select dates for benefit options on the Plans tab.

ImportantImportant

This control is not used in Microsoft Dynamics AX 2012 R2. Instead, effective dates for benefits are managed in the Maintain benefit versions form.

Maintain versions

Open the Maintain data reporting versions form.

Use the Types page of this form to define benefit types. A benefit type, such as medical or parking, contains a set of related benefit plans.

Fields

Description

Type

The name of a benefit type, such as medical or parking.

Description

A description of the benefit type or option.

Concurrent enrollment

Select one of the following options:

  • Multiple enrollments per type – You can enroll a worker in multiple plans that have the same benefit type, even if the enrollment is effective for the same period. For example, two term life insurance plans.

  • One enrollment per type – You cannot enroll a worker in more than one plan that has the same benefit type for the same period. For example, if the worker already has health insurance for a specified time period, you cannot assign another health insurance that covers the same period.

Payroll category

Select a payroll category for the benefit type. Different types of benefits require different payroll settings. The payroll category determines which settings are shown on the Plans page of this form. To simplify setup, settings that do not apply to the payroll category are unavailable.

NoteNote

This control is available only if Payroll for Microsoft Dynamics AX 2012 is installed.

Use the Plans page of this form to define benefit plans. A benefit plan is a specific benefit that a provider is contracted to offer.

Fields

Description

Plan

The name of a benefit plan.

Description

A description of the benefit plan.

Type

The benefit type. Benefit types are created on the Types page of this form.

Payroll impact

Select one of the following options:

  • None – No amounts are contributed by the employer or deducted from the employee’s pay.

    When this option is selected, all the FastTabs in this form, together with the payroll-related FastTabs in the Benefits form and the Maintain benefits form, are hidden.

  • Deduction only – An amount is deducted from the employee’s pay for this benefit, but no employer contribution is made.

    When this option is selected, all the fields that are related to employer contributions in this form, in the Benefits form, and in the Maintain benefits form, are hidden.

  • Contribution only – An employer contribution is made for this benefit, but no amount is deducted from the employee’s pay.

    When this option is selected, all the fields that are related to payroll deductions in this form, on the Benefits form, and in the Maintain benefits form, are hidden.

  • Deduction and contribution – An employer contribution is made for this benefit, and an additional amount is deducted from the employee’s pay.

NoteNote
  • This control is available only if Payroll for Microsoft Dynamics AX 2012 is installed.

  • This field is always set to Deduction only for garnishments and tax levies.

Option

The name of a benefit option. Benefit options are the coverage levels that are allowed by a benefit plan.

NoteNote

This control is not used by Microsoft Dynamics AX 2012 R2. Instead, options are added to plans when you create the benefit. For more information, see Benefit setup tasks.

Effective

Enter the first date when the benefit option for a selected plan is available to workers.

NoteNote

This control is not used by Microsoft Dynamics AX 2012 R2. Instead, effective dates for benefits are managed in the Maintain benefit versions form.

Expiration

Enter the last date when the benefit option for a selected plan is available to workers.

NoteNote

This control is not used by Microsoft Dynamics AX 2012 R2. Instead, effective dates for benefits are managed in the Maintain benefit versions form.

The controls in this table are available only if Payroll for Microsoft Dynamics AX 2012 is installed.

Fields

Description

Pretax basis

Select the pattern of before-tax and after-tax deductions and contributions that are used by the benefit plan. For example, select Roth 401(k) for a Roth 401(k) plan or for any other benefit plan that is treated like a Roth 401(k) for tax purposes.

Select Custom if no other option works for you and you want to specify the taxes that should not be deducted from the paychecks of employees who are enrolled in the plan.

Custom field group

Select one of the following options to specify the taxes that should not be deducted from the paychecks of employees who are enrolled in the plan.

  • By type – Select this option to select a check box for each tax that the benefit plan is exempt from. For example, select this option to exempt all state income taxes from the plan.

  • By tax group – Select this option to select a tax group that defines which taxes the benefit is exempt from. For example, select this option to exempt only state income taxes for a few states from the plan.

Caution noteCaution

Select Custom only when no preset pattern is appropriate. If you must use Custom, work with your legal advisors to make sure that you select the correct settings for the benefit plan.

The controls in this table are available only if Payroll for Microsoft Dynamics AX 2012 is installed.

This FastTab is available only when the payroll category that is assigned to the benefit type is Retirement.

Fields

Description

Retirement type

Select the type of retirement benefit.

Contribution method

NoteNote

This control is available only in versions of Microsoft Dynamics AX 2012 prior to cumulative update 6 for AX 2012.

Select the method to use to calculate contributions for this benefit plan.

NoteNote

The worker deduction and employer contribution rates are determined by the rate table that is defined in the Contribution calculation rates form and assigned to the benefit in the Benefits form. For more information, see Benefit setup tasks.

  • Fixed percent – The employer contribution is calculated by multiplying the employer contribution rate by the employee earnings. For example, suppose the rate for the worker deduction is .03, and the rate for the employer contribution is .02. The amount of the employer contribution would be .02, or 2 percent of the employee earnings. For this option, the worker deduction amount and the employer contribution amount are calculated separately.

  • Percent of employee – The employer contribution is calculated by multiplying the employer contribution rate by the worker deduction rate. For example, suppose the worker deduction rate is .03, and the employer contribution rate is .5. The amount of the employer contribution would be .03 * .5 = .015, or 1.5 percent of the employee earnings.

Contribution limit

Select the value that the maximum contribution for this benefit plan is based on:

  • None – There is no contribution limit.

  • Employee limit - The employer contribution stops when the employee’s payroll deduction limit is reached. For the payment in which the deduction limit is reached, the employer contribution is proportionally limited. For example, if only half of the expected employee deduction can be made before the limit is reached, only half of the employer contribution is made.

  • Fixed - The employer contribution limit is a fixed amount per calendar year. The amount is set in the contribution limit field on the benefit plan.

  • Combination - Both the employee limit method and the fixed method are evaluated, and whichever limit method reaches the limit first limits the employer contribution.

The actual amount of the contribution limit is entered on the Payroll details FastTab.

NoteNote

The worker deduction and employer contribution rates are determined by the rate table that is defined in the Contribution calculation rates form and assigned to the benefit in the Benefits form. For more information, see Benefit setup tasks.

The controls in this table are available only if Payroll for Microsoft Dynamics AX 2012 is installed.

Fields

Description

Lock pay statement

When this check box is selected, pay statement lines that include the selected benefit plan cannot be changed.

TipTip

Pay statement lines that include the benefit plan can be deleted, and additional lines that include the benefit plan can be added to the pay statement.

Recover arrears

When this check box is selected, arrearages that are created for this benefit plan are recovered in future payroll runs.

The amounts and transactions that are related to arrearages can be viewed in the Worker arrears form.

NoteNote

This field is not available for garnishments and tax levies. Arrears for garnishments and tax levies are handled by the government entity that imposed the order.

Deduction method

Select the method to use to determine the deduction amount if the employee’s pay is insufficient to cover the whole amount of the deduction for the selected benefit plan:

  • All or nothing – If the whole amount of the deduction cannot be made, nothing is deducted. The whole amount is placed in arrears.

  • Partial – Deduct as much of the deduction amount as possible. Any remaining amount is placed in arrears.

NoteNote

This field is always set to Partial for garnishments and tax levies.

Payment type:

  • Primary

  • Additional

  • Gross up

Select at least one payment type. Deductions and contributions for the selected benefit plan are included in payroll calculations for payroll runs that result in the payment types that you select.

Deduction priority

Assign a number to designate the default order that deductions for benefits are made in, relative to other deductions.

Amounts are deducted from pay statements starting with the benefit that has the lowest deduction priority number. When multiple benefits have the same number, the deductions for those benefits are made in alphabetical order.

Caution noteCaution

Certain benefits are considered mandatory deductions in some states, and those benefit plans should have the highest deduction priority (and therefore the lowest deduction priority number).

In many states, deductions for garnishments and tax levies must be made before deductions for any other benefits are made. In all states, the relative priorities of the different types of garnishments and tax levies are the same. Their deductions are typically made in the following order:

  1. Child support

  2. Bankruptcy

  3. Federal administrative

  4. Federal tax levy

  5. Student loan

  6. State tax levy

  7. Local tax levy

  8. Creditor

The deduction priority also might be affected by the order in which garnishments are received. Your legal advisors should help you determine the deduction priorities for the benefit plans you offer.

By default, the value in this field is entered in the Maintain benefits form when the worker is enrolled in the benefit. You can change the value for the worker at the time of enrollment or at any other time.

If you change the default value, the value on benefits that are already assigned to workers does not change. Those values must be changed individually.

Default deduction limits:

  • Limit period

  • Limit amount

The Limit amount value is the maximum amount that can be deducted from an employee’s pay for the selected benefit during the specified limit period. If there is no maximum amount, leave these fields blank.

NoteNote

When the payroll category that is assigned to the benefit type is Retirement, the limit period is automatically set to Year.

The limit period is calendar-based. The year is January 1 through December 31, the first quarter is January 1 through March 31, and so on. A fiscal calendar is not supported for these limits.

By default, the values in these fields are entered in the Maintain benefits form when the benefit is assigned to a worker. If you change the value here, the value does not change on benefits that are already assigned to workers. Those values must be changed individually.

Default contribution limits:

  • Limit period

  • Limit amount

The Limit amount value is the maximum amount of the employer contribution for the selected benefit during the specified limit period. If there is no maximum amount, leave these fields blank.

NoteNote

When the payroll category that is assigned to the benefit type is Retirement, the limit period is automatically set to Year.

The limit period is calendar-based. The year is January 1 through December 31, the first quarter is January 1 through March 31, and so on. A fiscal calendar is not supported for these limits.

By default, the values in these fields are entered in the Maintain benefits form when the benefit is assigned to a worker. If you change the value here, the value does not change on benefits that are already assigned to workers. Those values must be changed individually.

The controls in this table are available only if Payroll for Microsoft Dynamics AX 2012 is installed.

Fields

Description

Legal entity

Select the legal entity to see the accounting information for the selected benefit plan and the selected legal entity. A benefit plan might have different accounting information for each legal entity that offers it.

Category

The project category that is used for the employer contribution that is associated with the selected benefit plan.

Vendor

The vendor that payments for the selected benefit plan are paid to.

Default financial dimensions

The default financial dimensions for the main account. When you select a financial dimension value, the Where the %1 dimension is used field group displays where the dimension is used in account structures and advanced rule structures.

DeductionsMain account

The account that payroll deductions for the selected benefit plan are posted to.

NoteNote

This field is not available if the payroll impact for the benefit plan is Contribution only.

ContributionsMain account

The account that employer contributions for the selected benefit plan are posted to.

NoteNote

This field is not available if the payroll impact for the benefit plan is Deduction only.

The controls in this table are available only if Payroll for Microsoft Dynamics AX 2012 is installed.

Fields

Description

Deductions

  • Form W-2 box number

  • Form W-2 box label

If the benefit must be reported on Form W-2, select the number of the box on Form W-2 where the amount of payroll deductions for the selected benefit is reported, and enter the label to use for the box.

Because most benefits are not reported on Form W-2, these fields usually are left blank.

NoteNote

These fields are not available if the payroll impact for the benefit plan is Contribution only.

Contributions

  • Form W-2 box number

  • Form W-2 box label

If the benefit must be reported on Form W-2, select the number of the box on Form W-2 where the amount of the employer contributions for the selected benefit is reported, and enter the label to use for the box.

TipTip

These fields are most often used to report the value of employer-provided health care. For most other benefits, these fields are left blank.

NoteNote

These fields are not available if the payroll impact for the benefit plan is Deduction only.

Use the Options page of this form to define benefit options. Benefit options are the coverage levels allowed by a benefit plan.

Fields

Description

Option

The name of a benefit option.

Description

A description of the benefit option.

Allow dependent coverage

Select this check box if the selected benefit option is available to dependents.

Allow beneficiary designations

Select this check box if the selected benefit option is available to beneficiaries.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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