Setting up Company Contributions
When creating and launching Open Enrollment or Initial Enrollment to employees in Zenefits, you are required to add a contribution policy for each line of coverage.
Company contributions can be set up based on:
- Line of coverage
- Carrier
- Plan
The following calculation methods are available:
- Fixed dollar amount: if contribution is calculated as a fixed dollar amount
- Percentage: if contribution is calculated as a percentage of the cost of the plan the employee enrolls in
- Percentage of plan: if contribution is calculated as a percentage of a specific plan (more information on this scheme can be found here)
Company contribution for dependents are handled by selecting one of these four options:
- Define total contribution: if the calculation method and amount is the same for employees and dependents
- All dependents equal: if the calculation method and amount is the same for all dependents, but different from the employee
- Specify by type: if the calculation method or amount varies based on Type (Employee, Employee + Spouse, Employee + Children, Employee + Family)
- Specify by quantity: if the calculation method or amount varies based on quantity of dependents (Employee, 1 dependent, +2 dependents, etc)
If choosing to handle with "Specify by type" or "Specify by quantity" you'll have another option for choosing how to apply the premiums:
- Apply individually: if the total contribution for employees and dependents equals the fixed amount for "Employee" plus the fixed amount for "Spouse", "Children", etc
- Apply sum: if the total contribution for employees and dependents equals the amount entered
Company contributions can be defined as the amount of:
- Amount of premium the employer contributes (default)
- Amount of premium the employee is deducted
