Configure Proration Rules for Flex Credit Plans

In the Proration section of Benefits Setup > Flex Credit Setup > Flex Credit Plans, you can set the proration method that applies to the employees’ annual flex credits when they enroll in benefits mid-year. The proration method applies to all the tiers and flex credit amounts defined for the flex credit plan. You can set the following proration methods:

Proration methods for flex credit plans

Proration Method	Description
None	Proration doesn’t apply to the employee’s annual flex credit amount.
Remaining Months in Plan Year	Prorates the employee’s annual flex credit amount based on full calendar months between the start date of the benefit election and the end date of the plan year.
Remaining Pay Periods in Plan Year	Prorates the employee’s annual flex credit amount based on the number of effective pay periods between the start date of the benefit election and the end date of the plan year.
Fixed Date Intervals (Specific Year) Relative Date Intervals (No Year Specified)	Prorates the employee’s annual flex credit amount based on the start date of the benefit election. If the election start date falls within a period defined for the proration method, Dayforce prorates the amount according to the specified percentage. If the election start date falls outside the defined periods, Dayforce doesn’t prorate the flex credit amount.

To configure proration rules for flex credit plans:

1. Go to Benefits Setup > Flex Credit Setup > Flex Credit Plans.
2. Select the flex credit plan in the left sidebar.
3. In the Proration section:
   1. Select an option in the Proration Method drop-down list.
   2. Select the Enable rounding to the nearest dollar checkbox to round the flex credit amount to the nearest dollar amount after applying the selected proration method.
   3. To configure the Fixed Date Intervals (Specific Year) or the Relative Date Intervals (No Year Specified) proration method:
      • Click Add.
      • For the fixed date interval, select the effective dates to apply the proration method.
      • For the relative date interval, select the months and days to apply the proration method.
      • Enter the percentage value for the proration method.
      • Click Continue.
4. Click Save.