## Getting Started with JD Edwards EnterpriseOne Benefits

This chapter discusses:

- JD Edwards EnterpriseOne Benefits overview

- JD Edwards EnterpriseOne Benefits business processes

- JD Edwards EnterpriseOne Benefits integrations

- JD Edwards EnterpriseOne Benefits implementation

### JD Edwards EnterpriseOne Benefits Overview

After a company has determined what standard, government-mandated, and supplemental benefits that it will incorporate into its benefit package, benefit professionals must administer the plans. This task can be time-consuming and require a lot of paperwork. It generally requires close interaction with health insurance companies, unemployment insurance offices, and pension plan administrators. Therefore, many companies hire a third-party administrator (TPA) to assist them in administering the plans, maintaining plan compliance, and submitting regulatory reports to the appropriate administrators.

In addition to maintaining the benefit plans, benefit administrators must enroll employees in these plans. Many factors affect how employee enrollment will be administered, such as eligibility requirements and enrollment periods. Most benefit plans have eligibility criteria, such as age, length of service, and employment status, that employees must meet before they are allowed to participate in the plan. For example, a pension plan might stipulate that for an employee to be eligible to participate in the plan, he or she must be at least 21 years old, work a minimum of 20 hours per week, and have been employed by the company for at least one year. Sometimes the company decides these eligibility requirements and sometimes the company works with the plan administrator to decide the requirements.

Some benefit plans contain open enrollment or re-enrollment periods. Open enrollment refers to a time during which employees can change their benefit coverage or begin enrollment in a plan in which they were not previously enrolled. If an employee makes such changes outside of the open enrollment period, waiting periods might be required before the changes take effect, or employees might be prohibited entirely from making changes outside the open enrollment period. Re-enrollment occurs when a plan is based on a specific time period, generally one year. Employees must re-enroll in that plan annually. During the re-enrollment period, employees can sign up for different coverage than they had previously.

Frequently, annual re-enrollment periods are associated with cafeteria plans or flexible spending account plans. Cafeteria plans, often referred to as flexible benefit plans, are an effective way of allowing employees to select benefits that are useful to them. Employees pick from a group of benefit options and pay only for those options that they choose. This method of selecting benefits represents a cost savings to both employee and employer because they both are paying only for benefits that the employee uses. Generally, employers grant employees a certain number of flex credits that they used to pay for the benefits that they select. Each benefit option has a flex cost, and that cost is deducted from the total number of flex credits granted to the employee.

When an employee does not have enough flex credits to pay for the benefits that the employee chose, the excess amount can be deducted from the employee's payment through payroll deductions.

When an employee has more than enough flex credits to pay for the benefits that the employee chose, some employers allow the employee to use the excess credits in one of these ways:

- Receive the excess amount in the form of a taxable addition to the employee's pay.

- Use the excess amount for other life needs, such as tuition expenses, weight-loss programs, smoking cessation programs, or financial planning expenses.

Some employers do not permit employees to use excess flex credits.

The JD Edwards EnterpriseOne Benefits system from Oracle provides the tools to manage an organization's benefit plans. The feature provides online integration with other human resources information and payroll processing. With the Benefits Administration feature, you can respond to employees' requests for information about their benefits.

The JD Edwards EnterpriseOne Benefits system has features that enable companies to perform these functions:

- Administer plans with varying amount or rate options.

- Separate employer and employee portions of the costs of plans and options.

- Administer both pre-tax and post-tax benefits.

- Track non-cash benefits, such as use of a company car or health club dues.

- Determine benefits eligibility based on system or user-defined criteria.

- Generate payroll deductions.

### JD Edwards EnterpriseOne Benefits Business Processes

This process flow diagram illustrates the JD Edwards EnterpriseOne Benefits business processes:

Administer employee benefits

We discuss these business processes in the business process chapters in this implementation guide.

### JD Edwards EnterpriseOne Benefits Integrations

The JD Edwards EnterpriseOne Benefits system integrates with these JD Edwards EnterpriseOne systems:

- JD Edwards EnterpriseOne Address Book

- JD Edwards EnterpriseOne Human Capital Management Application Fundamentals

- JD Edwards EnterpriseOne Payroll

We discuss integration considerations in the implementation chapters in this implementation guide. Supplemental information about third-party application integrations is located on the Oracle | Peoplesoft Customer Connection website.

JD Edwards EnterpriseOne Address Book

The JD Edwards EnterpriseOne Address Book system from Oracle stores personal information for employees, dependents, and beneficiaries. Employees can view and change Address Book information through Benefits Self Service.

JD Edwards EnterpriseOne Human Capital Management Application Fundamentals

The JD Edwards EnterpriseOne Human Capital Management Application Fundamentals system from Oracle tracks and shares this information with the JD Edwards EnterpriseOne Human Resources system from Oracle:

- Complete employee information.

- Job information.

- Pay type, deduction, benefit, and accrual (PDBA) information.

- Time and labor information.

JD Edwards EnterpriseOne Payroll

The JD Edwards EnterpriseOne Payroll system from Oracle calculates benefit deductions, benefits, and accruals (DBAs). The system also deducts benefit costs from an employee's paycheck.

### JD Edwards EnterpriseOne Benefits Implementation

This section provides an overview of the steps that are required to implement the JD Edwards EnterpriseOne Benefits system.

In the planning phase of the implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information. A complete list of these resources appears in the preface in About This Documentation with information about where to find the most current version of each.

When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Benefits, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.

See Software Updates and Tools 8.98

For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Benefits, review the documentation available.

See http://www.peoplesoft.com/corp/en/iou/implement/rapid_start/rapid_start_prtr_notes.jsp

#### Global Implementation Steps

This table lists the global implementation steps for the JD Edwards EnterpriseOne Benefits system:

Step | Reference
1. Set up fiscal date patterns, companies, and business units. | See Setting Up Organizations.
2. Set up accounts. | See Creating the Chart of Accounts.
3. Set up General Accounting constants. | See Setting Up the General Accounting System.
4. Set up ledger type rules. | See Setting Up Ledger Type Rules for General Accounting.
5. Enter Address Book records. | See Entering Address Book Records.
6. Set up Human Capital Management fundamental information. | See Setting Up System Options.

#### Implementation Steps

This table list the core implementation steps for the JD Edwards EnterpriseOne Benefits system:

Step | Reference
1. Set up common settings, group information, benefit plans, plan options, benefit categories, date codes, pay type tables, eligibility tables, enrollment parameters, and link allocation funds to plans. | See Setting Up Benefits Administration.
2. (Optional) Set up DBA information for flexible benefits, a benefit group for flex, lump sun credit, employee flex deduction, and flex benefit plans. | See Setting Up Flexible Benefits.
3. (Optional) Activate automated COBRA administration, set up COBRA general constants, qualifying event constants, qualifying event rules, and plan premium amounts. | See (USA) Setting Up COBRA.
4. (Optional) (USA) Create a plan control group for Nondiscrimination testing. | See (USA) Setting Up Nondiscrimination Testing.