Set Up Benefits in OnePayroll

This article explains how to configure benefit programs, coverage types, rates, limits, and contracts in OnePayroll.

Tip

If you generated setup data from the Contoso Coffee Payroll Demo Dataset (see Getting started), benefit coverage types (Standard, Tax, Mandatory) are already configured. With the US localization, benefits for Social Security, Medicare, FUTA, SUTA (with limits for all 50 states), 401(k), and HSA are also included. Review and customize the existing benefits rather than creating them from scratch.

Setting Up Benefits

To set up a new benefit program in OnePayroll:

To create a benefit type

1. Choose the icon, enter Benefit Types, and then choose the related link.
2. On the Benefit Types page, create a new line and specify:
   • Code: A unique identifier for the benefit type
   • Description: A clear description of the benefit category
   • Base Pay Type: The hypothetical pay type used for calculations

To configure pay type liabilities

Pay type liabilities determine which pay types (earnings) are subject to a benefit type. This controls which earnings are included when calculating benefit amounts and contributions. Liabilities are configured from the pay type side, not from the benefit type.

• On the Pay Types list page, each benefit type appears as a column with a Liable checkbox. Select the checkbox to mark a pay type as liable for that benefit type.
• On the Pay Type Card page, use the Benefit Type Liabilities section to toggle which benefit types apply to the selected pay type.

Tip

Review your benefit plan documents and regulatory requirements to determine which types of earnings should be included in benefit calculations.

To configure coverage types

1. Choose the icon, enter Benefit Coverage Setup, and then choose the related link.
2. Create a new coverage type and specify:
   • Code: A unique identifier for the coverage type
   • Description: The name that employees will see when selecting coverage
3. On the Coverages FastTab, add the coverage options that employees can choose:
   • Code: A unique code for this coverage option
   • Description: What this coverage level represents
   • Employee Liability: Whether the employee is liable for this coverage (Not Liable, Employee, or Employer)
   • Employer Liability: Whether the employer is liable for this coverage (Not Liable, Employee, or Employer)

Tip

You can create coverage types that inherit from existing types using the Create Inherited Type action. This is useful when you have benefits with the same coverage options but different cost-sharing arrangements.

To create a benefit

1. Choose the icon, enter Benefit Setup, and then choose the related link.

2. On the Benefit Setup page, create a new benefit and fill in the fields:

   • Code: A unique identifier for the benefit
   • Type: Select the benefit type this benefit belongs to
   • Description: A clear name for the benefit program
   • Calculation Method: How benefit amounts are determined
   • Coverage Type: The coverage options available for this benefit
   • Pay Type: The hypothetical pay type for benefit calculations
   • Employee Pay Type: The pay type for employee deductions
   • Employer Pay Type: The pay type for employer contributions
   • Rate Assignment: Choose whether rates are set per employee or by rule
   • Limit Base: What the benefit limits are calculated on (liable wages or benefit amounts)
   • Limit Adjustment: Whether limits are prorated or applied in full

3. If the benefit applies from another benefit, fill in the Applies-From Benefit field.

   Note

   When a benefit applies from another benefit, the Assignable field is automatically set to No, and the coverage type must be compatible with the parent benefit.

To set benefit limits

1. From the Benefit Setup page, select a benefit and choose Limits.
2. On the Benefit Limits page, create limit rules:
   • Starting Date: When this limit becomes effective
   • Annual Employee Limit: Maximum employee contribution per year
   • Annual Employer Limit: Maximum employer contribution per year
   • Annual Total Limit: Combined maximum per year
   • Pay Period Employee Limit: Maximum employee contribution per pay period
   • Pay Period Employer Limit: Maximum employer contribution per pay period

Note

Limits are only available for benefits where Inherit Limits is set to No. Benefits that inherit limits use the limits from their parent benefit.

To configure benefit rates

1. From the Benefit Setup page, select a benefit and choose Rates.

2. On the Benefit Rates page, define rates based on your rate assignment method:

   • For Rule-based assignment: Create rules that apply to groups of employees
   • For Employee-based assignment: Set rates individually for each employee

3. Specify employee and employer rate amounts or percentages.

To link benefits to a contract

1. Choose the icon, enter Benefit Contracts, and then choose the related link.
2. Create a new contract:
   • No.: The contract or policy number
   • Provider No.: Select the vendor who provides this benefit
   • Description: A description of the contract
3. Choose Lines to assign benefits to this contract.

See Also

About benefits
Assign Benefits to Employees
Work with Benefit Hierarchies
Understand Benefit Limits

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