Objective
Deductible Allowance are benefits that allows periodic deductions from an employee’s compensation after his/her enrollment. For example, to encourage employees to prioritize physical fitness, an organization may provide an allowance for gym membership.
When creating a deductible allowances, you can indicate how much of the allowance is paid by the employee and how much by the employer. This can be a fixed amount or a percentage.
To configure a deductible allowance in your system, perform the following steps:
Use the Action Search and navigate to Benefits Admin Overview.
Select Create New → Benefit.
In the Step 1: Specify Benefit Type section for the Benefit Type field, choose Deductible Allowance.
In the Step 2: General Information section, enter the following information:
Benefit ID: The benefits object ID field must be populated when a benefit object is created. The object ID cannot contain any special characters, and it is recommended that only upper case letters are used.
Benefit Name: Specify the benefit name that you want to create.
Effective From: Select the date from when the benefit is effective in the organization. Based on this date, all employees for whom the benefit is applicable see it on their Employee Overview page.
Benefit Program: Select the relevant benefit program.
Status: Select the relevant status for the benefit, either Active or Inactive.
Benefit Short Description: Specify the short description for the benefit.
Currency.
Under the Payroll Integration section, enter the following details:
Integration Mode: Select Pay Components if you want the system to replicate the payment information to either compensation portlet or deduction portlet. Based on the benefit type that you select, the system creates payment information entries in one of the portlets.
| Benefit Type | Portlet |
|---|---|
| Pension | Deductions Portlet |
Deduction Start Date: Select the required value from the following options.
As of Enrollment Effective Date: Here, the system creates both the enrollment and deduction entries effective from the date the employee enrolls into the benefit.
Next Pay Period Based on Pay Check Issue Date: Here, the system creates deduction entries based on the pay check issue date. If the enrollment effective date is on or after the pay change issues date, the deduction date will be the start date of the next pay period. If the enrollment effective date is before the pay change issue date, the deduction date is the enrollment effective date.
Note
If you choose the next pay period, ensure that you define the pay calendar.
Always Next Pay Period: The system creates the deduction entries effective from the start date of the next pay period. The pay check issue date is not considered.
In Step 3: Associate Legal Entities, specify the name of the legal entity/company for which you want this benefit to be active.
In Step 4: Specify Enrollment and Claim Dates, enter the following information:
Benefit Schedule: Select the schedule. Based on the period that you maintain in the schedule, the system determines the validity of enrollment and claim. If you want to create a benefit schedule, choose Add. If you choose this button, the Benefit Schedule pop-up screen appears. Enter the following data:
Schedule ID.
Schedule Name: Specify the name of the schedule for a particular benefit.
Schedule Periods: Assign multiple periods where you have defined different claim and enrollment validity dates. To create a new period, choose the Add button. The Benefit Schedule Period pop-up screen appears. Enter the following data:
Period ID.
Period Name.
Enrollment Opens: Enter the start date for enrolling in a benefit. The employee can enroll for a particular benefit from this date.
Enrollment Closes: Enter the end date for enrolling in a benefit. The employee can enroll for a particular benefit until this date.
Enrollment Effective From: Enter the date from which the enrollment is valid.
Enrollment Valid Until: Enter the date until which the enrollment is valid. After this date, the employee must renew the enrollment to continue being eligible for a benefit.
Claim Starts: Enter the Start date for claiming a benefit.
Claim Ends: Enter the end date for claiming a benefit. Until this date the employee can claim for a particular benefit.
Balance Carry Forward Up to Date: Enter the date up to which an employee can carry forward any unclaimed balances.
Frequency: Specify the frequency of occurrence of the benefit.
Maximum Claims Per Schedule: Specify the maximum number of claims that you can make in a given schedule.
Maximum Claims Per Frequency: Specify the maximum number of claims that you can make in a given frequency that is annual, or monthly, and so on.
Days Remaining to Claim Benefit: Specify whether or not to show or hide the number of days remaining to claim for a benefit.
In Step 5: Define Enrollment Details, specify the following:
Enrollment Required: Select Yes or No.
If you select Yes, it means that an employee must enroll to avail of the benefit.
If you select No, the employee is not required to enroll in a benefit to avail themselves of the benefit. If the employee is eligible, they automatically see the benefit in the Employee Overview page.
Days Remaining to Enroll in Benefit: Specify whether or not to show or hide the number of days remaining to enroll in a benefit.
In the Enrollment Type and Workflow section, information such as:
Enrollment Type: Select either Automatic or Manual. This field displays on the screen only if you select Yes in the Enrollment Required field.
If you select Manual, the employee must go to the Enrollment Page and enroll for a benefit.
If you select Automatic in the Enrollment Type field, you must create a job for auto enrollment of benefit.
Enrollment Workflow: Associate the workflow that the system must trigger when an employee enrolls for a benefit.
E-mail Notification for Enrollment: Select Yes if you want an employee to receive an e-mail notification once an employee enrolls for a benefit and the enrollment is approved.
In the Settings for Employee Edit and Opt-out of Enrollments section, information such as:
Enrollment Edit Allowed: Select either Yes or No.
In case you select Yes, the system displays the Allow Edit of Enrollment field. Select one of the following values:
Only during Open Enrollment Period
If you choose Yes, then the employees can edit their enrollment details only when the enrollment window is open.
Only while Enrollment is Active
If you choose Yes, then the employees can edit their enrollment details during benefit validity period and enrollment window is open.
Throughout Open and Active Enrollment
If you choose Yes, then the employees can edit their enrollment details anytime during benefit validity period, enrollment period, and including the gap period between enrollment period and validity period.
To edit the enrollment details, an edit link appears against each relevant benefit. Employees can use this link to edit the enrollment of the particular benefit in Employee Overview page.
In case you select Yes, the system displays the Allow Opt Out of Enrollment and Opt-out Workflow fields.
Allow Opt Out of Enrollment
If you choose Yes, Read-only Effective Date, then the employee can opt out of manually or automatically enrolled benefits during the active enrollment period due to a life event with a benefit exception which allows edit and opt out, and the effective date appears as read-only.
If you choose Yes, Editable Effective Date, then the employee can opt out of manually or automatically enrolled benefits during the active enrollment period due to a life event with a benefit exception which allows edit and opt out, and the effective date appears editable and can be set in the past, or in the future other than the enrollment date. If an employee chooses to opt out they can also re-enroll as per their eligibility and the enrollment schedule.
The admin is able to select an approval workflow for the opt-out event.
If you choose No, employees will not be allowed change the enrollment details.
Allow Automatic Updates of Enrollment. This field displays when the Enrollment Type is set to Automatic.
If you select Yes in this field, the system allows the job to edit the enrollment details.
Note
In the current release, the automatic edit of enrollment is possible only for Pensions.
In the Associate Any Additional Enrollment Fields And Config UI Screen Specific to this Benefit (Optional) section, information such as:
Enrollment Screen ID.
Additional Enrollment Fields: Select the relevant enrollment object.
You use this field when you want the employee(s) to enter more details while enrolling. For example, for company car benefit enrollment you may want to capture information like route number, home address, emergency contact number and so on. These are not standard fields. You can add these fields to the claim object and then associate them here.
Carry Forward Enrollment: Select either Yes or No.
If you select Yes, you can carry forward the enrollment from the previous periods to the subsequent schedule period.
In Step 6: Add Useful Contacts, enter the details of the contact person for the relevant benefit in the Contacts field. You can see this data on the Enrollment and Claim screen.
In Step 7: Add Policy Documents, Forms, and Links, you can specify the related benefit documents using the following fields.
Under the Hyperlinks section, information such as:
URL: Enter the target URL.
Label: Enter the label for the hyperlink.
Policy Documents: Enter the policy description and attach the relevant policy document.
Forms: Attach the relevant form which the employee has to fill in.
Links: Enter the related web links, if any.
Note
To upload, you must save the documents. You can see this data on the Enrollment and Claim screen.
In Step 8: Benefits Deductible Allowance, specify the following.
Employee Contribution Pay Component: Select the relevant deduction pay component.
Employee Contribution: Enter the amount that the employee contributes for an allowance.
Employer Contribution Pay Component: Select the relevant deduction pay component.
Employer Contribution: Enter the amount that the employer contributes for an allowance.
Contribution Rule: Select the relevant rule. This rule determines the employer contribution amount for a particular employee.
Once the employee enrolls in a particular benefit and the enrollment is approved, the employee sees the corresponding entry in his or her deduction portlet. To trigger deductions, set the Integration Mode to Pay Components to integrate with Employee Central Payroll or other payroll systems using employee compensation and deduction objects. .
Note
When an employee or administrator edits an enrollment, the deduction entry also gets adjusted accordingly.
In case you maintain both employer/employee contributions and a contribution rule, the system uses the contribution rule to determine the contribution amount.
In this exercise, you will create a deductible allowance that employees can use for a gym membership. The cost will be shared by the employee and the employer, with each contributing US$50 per month.
Create a new benefit schedule using the data in the following table:
| Field | Value |
|---|---|
| Schedule ID | 2025GYM |
| Schedule Name | 2025 Gym Deductible Allowance Period |
| Schedule Period | Choose + and enter the following data:
|
Use the Action Search and navigate to Benefits Admin Overview.
Select Create New → Benefit Schedules.
Enter the given Schedule ID and Schedule Name.
In the Schedule Period field, select +.
Enter the details given in the table for the Schedule Period .
Choose Save and close the Benefits Schedule Period screen.
Choose Save.
Create a pay component with the following details:
| Field | Value |
|---|---|
Effective as of | 01/01/2025 |
Pay Component ID | EEGymDeductibleAllowance |
Name | EE Gym Deductible Allowance |
Status | Active |
Pay Component Type | Amount |
Is Earning | No |
Currency | USD |
Frequency | Monthly (pay frequency of employee) |
Recurring | Yes |
Can Override | Yes |
Navigate to Employee Files → Manage Organization, Pay, and Job Structures.
Choose Create New: Pay Component.
Enter the data from the table.
Create a new benefit using the data in the following table:
| Field | Value |
|---|---|
Benefit ID | GYM |
| Benefit Type | Allowance |
Benefit Name | Gym Allowance |
Benefit Short Description | Gym Allowance |
Effective From | 01/01/2025 |
Status | Active |
Currency | U.S. Dollar |
Integration Mode | Benefit Objects |
Legal Entity | Ace USA |
| Frequency | Monthly |
| Benefit Schedule | 2025 Gym Deduct Allowance Schedule |
| Enrollment Required | Yes |
| Day Remaining to Enroll | Show |
| Employee Contribution Type | Amount |
| Employer Contribution Type | Amount |
Enrollment Type | Manual |
Enrollment Edit Allowed | No |
Employee Contribution Pay Component | EE Gym Deductible Allowance |
Employee Contribution | 50 |
Employer Contribution Pay Component | EE Gym Deductible Allowance |
Employer Contribution | 50 |
Use the Action Search and navigate to Benefits Admin Overview.
Choose Create New: Benefit.
Enter the data from the table.
Select Save.
Confirm if the benefit deductible allowance is showing up in the People Profile → Benefits tab under the Allowance tab.
From the User menu, select Proxy As.
Enter the user name Carla Grant.
Select View My Profile.
Select the Benefits tab.
Under My Active Enrollments, select Go To Benefits.
Verify the Gym Allowance appears under Open Enrollments.
Log in to track your progress & complete quizzes