Prepared by : HR Tech team.

This document basically gives a Brief overview about HR-Benefits.

Contents :

Introduction to EnrollmentIntroduction to Benefit OfferIntroduction to Benefit AreaIntroduction to Benefit CategoryIntroduction to Benefit Plan typesIntroduction to Benefit PlansIntroduction to First Program GroupingIntroduction to Second Program GroupingBenefits EligibilityBenefits Participation Benefit Plan Costs Introduction to HR Forms Standard Reports in BenefitsInfotypes used in BenefitsTransactions Used in Benefits Benefit Plans Specific to USA Benefit Plans Specific to ASIA Prededuction Definitions

Introduction to Benefits

In a competitive employment market, benefits play a significant role in total compensation offers designed to attract and keep the best possible employees. The SAP Benefits (PA-BN) component offers you powerful and comprehensive tools for creating and managing tailor-made benefits packages for your employees. It allows you to administer an extensive range of benefit plans, and its sophisticated configuration options can accommodate complex plan definitions.

The Benefits application component offers comprehensive tools for administering employee benefits in an organization. It provides all the concepts and functions that are needed to manage extensive and highly individual benefits packages for the employees of an organization.

Benefits integrates to SAP's International Payroll, however, it does not integrate to every SAP Country Payroll version.

If we want to use Benefits for a Country Payroll version that is not integrated, in conjunction with non-SAP payroll software or an external payroll service, we must provide our own interface for the transfer of data.

The Benefits Administration component provides the functions needed to handle the organization's benefits administration processes. It enables us to perform the following key activities:

Enroll employees in benefits plans and terminate enrollments

Monitor eligibility

View information about current benefit enrollments

Print enrollment and confirmation forms

Transfer data electronically to plan providers

ENROLLMENT :

This is a process of enrolling employees of an organization for Benefit Plans depending on their eligibility.

The Enrollment function enables us to enroll employees and, where possible, make changes to employee benefit elections as required for the following tasks:

Enrollment of employees during an open enrollment period in plans for the coming season

Enrollment of new hires in plans that are automatically offered

Enrollment of new hires in default plans as an interim measure, until they have made their benefits choices

Adjustment of plan enrollments as a result of employee life or job changes

There are four types of Enrollments. They are 1. Open Enrollment Offer2. Default Enrollment Offer3. Automatic Enrollment Offer and 4. Adjusted Enrollment Offer

These Enrollments are also known as Benefit Offers.

OPEN ENROLLMENT

An open offer is the most unrestricted type of offer. It is generated by the system when you start enrollment for a date that lies within an open enrollment period. Only those plans are available in an open offer for which the employee fulfills certain eligibility criteria, as defined in Customizing.

A period of time during which an organization allows its employees to enroll in new benefits plans or change existing benefits elections.

The benefits offer set up for open enrollment is valid only during the open enrollment period. Plans available for selection during the open enrollment start on a future date, typically at the beginning of the coming year.

Open enrollment is implemented in the USA and Canada.

Example

A company allows its employees to choose their benefits on an annual basis for the coming year. The open enrollment period is 1 Oct 1999 to 30 Nov 1999, and any new benefits elected by employees are valid from 1 Jan 2000 to 31 Dec 2000.

Default

A plan in which employees can be enrolled before they communicate their benefits elections to the benefits office.

Default plans are typically used for giving short-term coverage to new hires and therefore often allow little flexibility to the employee regarding the plan terms.

Automatic

A plan in which employees are enrolled without the requirement that they consent to the enrollment or make any elections within the plan. An employee is enrolled in all relevant automatic plans at all times.

Automatic plans are often provided at no extra cost to the employee and often allow little flexibility to the employee regarding the plan terms.

Adjusted

A personal or organizational change experienced by an employee, as a result of which the employee is allowed to change his/her current benefit elections.

In the SAP System, the adjustment reason is a user-defined parameter to which certain adjustment permissions are assigned for different types of benefit plan.

The following are examples of adjustment reasons:

Marriage

New dependent

Hiring (initial enrollment)

Job change

Benefit Area

Benefit areas allow you to have separate administration of different benefit plan pools. This division is primarily for administrational purposes and would not normally be used for eligibility.

This is a primary subdivision of plan set up within the benefits component. Benefit areas are set up and function completely independently of each other. Typically, employees will be enrolled in a benefit area that groups them according to common attributes such as country or organizational assignment.

Below mentioned are some of the Benefit Areas :

Benefit Area Name of HR country 01 Germany 02 Switzerland

03 Austria 04 Spain 05 The Netherlands 06 France 07 Canada 08 Great Britain 09 Denmark 10 USA 11 Ireland 12 Belgium 13 Australia 14 Malaysia 15 Italy 16 South Africa 17 Venezuela 18 Czech Republic 19 Portugal 20 Norway 21 Hungary 22 Japan

Benefit Category :

Benefit Category is the broadest classification of a benefits. Categories are maintained by SAP .

The following plan categories are provided by SAP:

Health Plans

Insurance Plans

Savings Plans

Stock Purchase Plans

Flexible Spending Accounts

Credit Plans

Miscellaneous Plans

These categories are predefined because the system handles each differently. In order to reflect your own requirements regarding the categorization of plans, you define plan types within these categories.

Benefit Category is the highest level in the Benefit Plan structure . Benefit Categories are again divided into Plan types . Every Category may consist of one or more Benefit Plan types .

Benefit Plan Types

Benefit Plan types are the logical grouping of different benefit plans. Each Plan type is identified by a unique identifier which is a maximum of four characters.Ex :MEDI - Comes under Health Plan Category ( MEDI => Medical )DCAR - Comes under Flexible spending Accts ( DCAR => Dependent Care Spending )LIFE - Comes under Insurance Plans Category ( LIFE => Life Insurance ) SAVE - Comes under Savings Plans Category ( SAVE => Savings )STPC - Comes under Stock Option Category ( STPC => Stock Purchase )CAR - Comes under Miscellaneous Plans Category ( CAR => Company Car )CRED - Comes under Credit Plans Category ( CRED => Flex Credit )

Plan types are a control mechanism for enrollment, since the system does not allow an employee to enroll in more than one benefit plan per plan type. This allows you, for example, to offer a choice of regular health care from different providers under one plan type, without the risk of accidentally enrolling an employee in more than one of these benefit plans.

Within each plan category (for example, Insurance Plans) you should define one plan type for each sort of benefit plan that the employee is likely to elect (for example, Life Insurance, Spousal Life, Supplemental Life). Thus an employee can elect a plan from the Life Insurance as well as from the Spousal Life plan type.

Example

The following are examples of plan types for each of the plan categories:

Health Plans

General medical care

Dental care

Vision care plan

Insurance Plans

Basic life insurance

Dependent life insurance

Supplemental life insurance

Savings Plans

Retirement plan

Savings plan

Stock Purchase Plans

Own company stock plan

Flexible Spending Accounts

Health care spending account

Dependent care spending account

Credit Plans

Cafeteria plan

Miscellaneous Plans

Company car

Benefit Plans

The Granularity level in the Benefit Plans Structure is identified by Benefit Plans. Many Benefit plans may be grouped together under a

particular plan type.The benefit Plans are also identified by a unique identifier which is of a maximum of four characters.

Ex : MEDI , DENT , VISI for Health Plans Category ( MEDI Plan Type )

Benefit plans within the health plan category cover the basic health needs of an employee. A typical health plan might provide the employee with medical, dental or vision coverage.

Insurance plans provide monetary amounts of coverage payable to the employee or designated beneficiaries.

A savings plan allows an employee to accumulate capital within a company sponsored benefit plan.

A spending account provides an employee with the opportunity to establish account balances to meet anticipated spending needs during the course of the employee's benefit plan year. These needs are most often associated with health, dependent care or legal benefits.

Benefit first program grouping The first program grouping is a method of grouping employees for purposes of macro eligibility. The second program grouping is a second, identical method of grouping employees into other macro eligibility groups. The cross reference of these two groupings places every employee into a benefit program. First program groupings are a means of identifying a group of employees who share a common set of benefits and eligibility criteria.

Example

An organization offers one set of benefit plans for hourly-paid employees and a different set for salaried employees. Hourly-paid employees may enroll in medical, dental and life insurance plans after a four month waiting period. Salaried employees may enroll in medical, dental, life and vision plans after a one month waiting period. Benefit second program grouping The second program grouping is a method of grouping employees for purposes of macro eligibility. The first parameter grouping is a second,

identical method of grouping employees into other macro eligibility groupings.

The cross reference of these two groupings places every employee into a benefit program. Second program grouping is a means of subdividing your first program groupings depending upon their employment status.

Example

An organization offers one set of benefit plans for full-time employees and a different set for part-time employees. Full-time employees may enroll in medical, dental and life insurance plans after a four month waiting period. Part-time employees may enroll in medical, dental, life and vision plans after a one month waiting period.

Eligibility

The important part in the Benefits is Identifying the all the Eligible Employees for a given Benefit Plan . This can be achieved using function module

‘HR_BEN_CHECK_MICRO_ELIGIBILITY’. This function module determines whether a person is eligible or not .

Similarly to determine the Eligibility date and the Participation date of an employee for a benefit plan we can use the function module(s)‘HR_BEN_CALC_ELIGIBILITY_DATE’ for eligibility and‘HR_BEN_CALC_PARTICIPATION_DATE’ for participation date .

Infotypes used in Benefits

Here below is the most commonly used Infotypes.

Health Plans (Infotype 0167) Insurance Plans (Infotype 0168) Savings Plans (Infotype 0169) Spending Accounts (Infotype 0170) Credit Plans (Infotype 0236) Stock Plans (Infotype 0375)Miscellaneous Plans (Infotype 0377)

General Benefits Data (Infotype 0171)Family/Related Person (Infotype 0021)External Organization (Infotype 0219)Date Specifications (Infotype 0041)Monitoring of Dates (Infotype 0019)COBRA Qualified Beneficiary (Infotype 0211)

Control Tables / Catalog Tables

Control tables are master table,here below is some control tables used.

T5UBA --- Benefit PlansT5UB1 --- Benefit Plan typeT5UBU --- Benefit ProgramT5UB3 --- Benefit Area

Benefits Specific to USA :

The Benefits which are specific to USA are COBRA plans Flexible Spending Accounts and Tax Sheltered Annuity Plans,

The Benefit Plans specific to ASIA are Cloth reimbursements

COBRA : Consolidated Omnibus Budget Reconciliation Act of 1985

This Plan requires the vast majority of employers to offer continuation of coverage to covered employees and their dependents who, due to certain COBRA qualifying events, lose group health plan coverage.

COBRA Events 

This component enables you to identify employees who are COBRA-qualified beneficiaries and their qualified dependents. Depending on your customizing settings, you can collect individuals for some or all of the following COBRA qualifying events:

Termination of employment

Death of employee

Reduction in work hours

Entitlement to Medicare

Divorce

Legal separation

Loss of dependent status

Bankruptcy of employer

The collection of COBRA events is the first step in the COBRA administration process. You typically run the collection for all your employees in the background.

Standard Reports in Benefits

Eligible Employees (Report RPLBEN01)Participation (Report RPLBEN02) Health Plan Costs (Report RPLBEN03)Insurance Plan Costs (Report RPLBEN04)Savings Plan Contributions (Report RPLBEN05)Vesting Percentages (Report RPLBEN06)Changes in Benefits Elections (Report RPLBEN07)Flexible Spending Account Contributions (Report RPLBEN08)Changes in Eligibility (Report RPLBEN09)Employee Demographics (Report RPLBEN11)Changes in Default Values for General Benefits Info (Report RPLBEN13)Costs/Contributions for Miscellaneous Plans (Report RPLBEN15)Stock Purchase Plan Contributions (Report RPLBEN16)Benefit Election Analysis (Report RPLBEN17)Contribution Limit Check (Report RPLBEN18)Enrollment Statistics (Report RPLBEN19)Create Payment List Report (RPUBENPAYRQ)Actual Hours report (RPUBEN47)

HR Benefits transaction list

Transaction DescriptionCode

HR00 HR Report Selection

HRBEN0000 Benefits Application Menu

HRBEN0001 Enrollment

HRBEN0003 Eligibility Monitor

HRBEN0004 EOI Monitor

HRBEN0005 Enrollment Form

HRBEN0006 Benefits Employee Overview

HRBEN0007 General Employee Data

HRBEN0008 Report Selection

HRBEN0009 Benefits - Plan Overview

HRBEN0011 Benefits Cost Overview

HRBEN0012 Enrollment Automatic Plans

HRBEN0013 Enrollment - Default Plans

HRBEN0014 Termination of Participation

HRBEN0015 Confirmation Form

HRBEN0041 Jump from IMG into Maintenance Views

HRBEN0042 Configuration Consistency Check

HRBEN0043 Copy Benefit Area

HRBEN0044 Delete Benefit Area

HRBEN0045 Benefit Area Currency Conversion

HRBEN0046 Cost Overview

HRBEN0047 Check Actual Working Hours

HRBEN0049 Currency Conversion Benef. Infotypes

HRBEN0050 Copying templates in BDS

HRBEN0051 Maintenance of templates in BDS

HRBEN0052 IDoc Data Transfer

HRBEN0053 Copy Benefit Plan

HRBEN0054 Delete Benefit Plan

HRBEN0055 Adjustment Authorizations Overview

HRBEN0056 Standard Plans Overview

HRBEN0071 Eligible Employees

HRBEN0072 Participation

HRBEN0073 Health Plan Costs

HRBEN0074 Insurance Plan Costs

HRBEN0075 Savings Plan Contributions

HRBEN0076 Vesting percentage rate

HRBEN0077 Changes in Benefits Elections

HRBEN0078 FSA Contributions

HRBEN0079 Changes in Eligibility

HRBEN0081 Employee Demographics

HRBEN0083 Change in general benefits

HRBEN0085 Miscell. Plan Costs/Contributions

HRBEN0086 Stock Purchase Plan Contributions

HRBEN0087 Benefit election analysis

HRBEN0088 Contribution Limit Check

HRBEN0089 Enrollment Statistics

HRBEN00PAYRQ Create Payment Requests

HRBENUS01 Benefits: COBRA Administration

HRBENUS02 FSA claim

HRBENUSCOB01 Collect COBRA Events

HRBENUSCOB02 Create COBRA Letters

HRBENUSCOB03 COBRA Participation

HRBENUSCOB04 COBRA Payments

HRBENUSCOB05 COBRA Cost Overview

HRBENUSCOB06 COBRA Enrollment Form

HRBENUSCOB07 COBRA Election Period

HRBENUSCOB08 COBRA Invoice

HRBENUSCOB09 COBRA Confirmation Form

HRBENUSCOB10 Data Transfer to Provider (COBRA)

HRCLM0001 Claims processing data entry

HRCLM0002 Claims processing Account records

HRCLM0010 Jump from IMG to maintenence views

HRCLM0015 Details of Entitlementsand Claims

HRCLM0020 Enrollment Claims

HRCMP0000 Compensation management

HRCMP0001 Compensation Administration

HRCMP0001_A Compensation Adj. Reasons (Tree)

HRCMP0002 Comp. Adjustment over Org. Structure

HRCMP0003 Compensationi Adj.: Employee Selec.

HRCMP0004 Submit Compensation Adjustments

HRCMP0005 Approve Compensation Adjustments

HRCMP0006 Reject Compensation Adjustments

HRCMP0007 Activate Compensation Adjustments

HRCMP0010 Compensation Management: Budgeting

HRCMP0011 Budget Structure Maintenance: Create

HRCMP0012 Budget Structure Maintenance: Displ.

HRCMP0013 Budget Structure Maintenance: Change

HRCMP0014 Budget Administration: Display

HRCMP0015 Budget Administration: Change

HRCMP0020 Report selection

HRCMP0021 HR PA-CM: Access Ad HocQuery

HRCMP0022 HR PA-CM: SAP Query Access

HRCMP0030 Change Matrix Catalog

HRCMP0031 Display Matrix Catalog

HRCMP0041 Pay scale Increase

HRCMP0042 Pay Scale Reclassification

HRCMP0043 Pay Scale Reclassification by Hours

HRCMP0050 Job Pricing

HRCMP0051 Maintain Job (Compensation Mgmt)

HRCMP0052 Maintain Position (Comp. Mgmt)

HRCMP0060 Long-term incentives: granting

HRCMP0061 Long-term incentives: Exercising

HRCMP0062 Life events for long-term incentives

HRCMP0063 Expiration/forfeiting of ltis

HRCMP0064 Cancellation of long-term incentives

HRCMP0070 Workflow Custom. Comp. Adjustment

HROBJ Customizing HR

HROM Organizational Management reports

HRPAYDEBSA Construction: Display Const.Sites

HRPAYDEBSP Construction; Maintain Cons.Sites

HRPAYJP_COMMUTER Commuting allowance management

HRPAYJP_COMMUTER_DIS Commuting allowance management dis.

HRRSM00FBA External HR Master Data

HRRSM00IMG Customizing RSM

HRRSM00NUMKR Maintain number range: HRSM_SEQNR

HRRSM00PAR External HR Master DataParameters

HRUSER Set Up and Maintain ESSUsers