Using the Date Based - Fixed rule, Dayforce prorates the employee or employer contribution maximum amounts based on one or more fixed date ranges that you set. If the election start date is within the date range defined in one of these rules, Dayforce prorates the contribution based on the percentage defined in the rule. If the election start date doesn't fall within any of the defined date ranges, then Dayforce doesn't prorate the contribution.
Example: The employee maximum contribution for the option “Single HSA 2016” is $3,350.00, and has a plan year that runs from January 1, 2018 to December 31, 2018. The organization has three prorate rules for this option:
- April 1, 2018 - June 30, 2018: prorate by 25%
- July 1, 2018 - September 30, 2018: prorate by 50%
- October 1, 2018 - December 31, 2018: prorate by 75%
If an employee enrolls on or after April 1, but before June 30, when this rule is applied, the maximum amount that the employee can contribute for the year is prorated by 25%, which comes to $2,512.50:
3,350.00 - (3,350.00 × 0.25) = 2,512.50
An employee who enrolls between July 1 and September 30 (inclusive) can contribute a maximum of $1,675.00; an employee who enrolls between October 1 and December 31 (inclusive) can contribute a maximum of $837.50.
You can add as many fixed date proration rules as you need, and you can use a fixed date prorate rule for options that have either fixed or relative plan years. If the plan year has fixed dates, however, proration rules that have fixed dates must define periods that are fully included in the plan year.
When you select Date Based - Fixed in the Prorate Rule drop-down list, Dayforce shows controls to add effective dates and a percentage.