Employees have the option to receive flexible benefits either proportionally as part of their regular salary or as a lump sum when they claim the benefit. To select from various flexible benefits on a pro-rata basis, employees need to create a new Employee Benefit Application.

To initiate a new Employee Benefit Application, navigate to:

Human Resources > Payroll > Employee Benefit Application > New Employee Benefit Application

Within this application, employees can review the maximum benefit amount based on their assigned Salary Structure and then select from the Earning Components listed in their assigned structure. They can also specify the amount they wish to receive in their Salary Slip.

The Employee Benefit Application determines how the maximum benefit amount will be distributed among the flexible earning components when generating the Salary Slip. If an employee fails to submit the Employee Benefit Application before payroll processing, the eligible maximum benefit amount will be distributed proportionally to each flexible component in the employee’s salary structure.

It’s important to note that employees can submit only one Employee Benefit Application per Payroll Period. The application should encompass the entire amount the employee is entitled to receive based on the maximum benefit amount on a pro-rata basis. However, if the employee’s Salary Structure includes components payable via Employee Benefit Claims (components with Pay Against Benefit Claim), the employee can submit an application excluding the amount allocated for such components.

Additionally, components eligible for receipt through Employee Benefit Claims can be included in the application, but they will only be disbursed as a lump sum when the employee submits a claim for them.

Normal tax calculations typically exclude Flexible Benefits, as they are often exempt from taxation. To apply tax to these components at any time before the last payroll, utilize the Deduct Tax For Unclaimed Employee Benefits option in Payroll Entry / Salary Slip processing.