Year-End Benefit Process

Year-End Benefit Process

Scenario

You reported benefit time that an employee used in the prior year, and it is now reducing the current year’s balance.

What is Causing the Problem?

When the benefit year ends during the middle of a pay period and your benefit “zeros out” or only allows a limited amount of hours in the benefit bank to rollover to the next year, the hours taken in the previous benefit year will be reduced from the current benefit year’s balance. The system is unable to determine what year the benefit was used in, so it assumes everything was taken in the current year.

Correcting Benefits

Here are several options to correct the problem:

  1. Manually adjust the balances each year.
  • Review the Benefit Notification Report for the last payroll of the year. This will display balances at year end and should be kept for your records.
  • After 12/31, you can go into an employee’s profile and make a manual adjustment (using the Starting Balance button) to enter in any adjustment that needs to be accounted for from the previous year.

p(. For example, if an employee used 16 hours from the previous year that will be paid out on the first paycheck of the current year, you would input 16 hours in the starting balance to offset the 16 hours taken.

  • You will need to use the Benefit Notification Report to determine if the employee is taking more hours than was left from the previous year. If an employee uses more than the available hours, you must decide how to address this.
  1. Changing a “zero out” or limited rollover policy within your Paycor application.
  • When you have a zero out or limited rollover policy in your handbook, you can set up your Paycor application to complete a rollover. If the majority of your workforce diligently uses all their benefit time, then this may be the best option for you, because you would be processing less adjustments than option 1.
  • You must obtain a Benefit Notification Report for the last paycheck of the year. This will display the balances at the end of the year and should be kept for your records.
  • After 12/31, you can go into an employee’s profile and make a manual adjustment (using the Starting Balance button) to zero out or reduce the amount of hours that rolled over from the previous year.

p(. For example, an employee failed to schedule and use 5 hours of their time from the previous year. By clicking on the starting balance button, a "5" would be entered into the Adjustment Hrs field.

  • You can now address the individual employees who fail to use all the benefit time awarded to correct this issue for the current year.

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