In the Proration Rules tab, you can configure Dayforce to prorate annual employee and employer contribution maximum limits for retirement and reimbursement plan options. This allows you to account for new mid-year enrollments. Proration rules don't apply for updated elections.
Proration rules only apply to the following types of elections:
- Retirement and reimbursement options that include contributions with an annual contribution period
- Retirement options with an annual contribution amount, not an annual contribution percentage
- Elections generated after proration rules are set
After you set proration rules, Dayforce limits the amount that an employee can elect, and that an employer can contribute, when an option is newly elected mid-year. The amount is calculated using the combination of the proration rules and the maximum contribution values configured. For proration rules to work for new mid-year elections, ensure that you configure the following checkboxes in the Contribution tab of reimbursement and retirement plan options in Benefits Setup > Plans and Options:
- Include Employee Plan-to-Date amount in Contribution Changes
- Include Employer Plan-to-Date amount in Contribution Changes
Note: If you selected Auto Enroll in the Contribution tab of the option and configured proration rules, these rules apply to the elections of employees being auto-enrolled.
In the employee and employer Prorate Rule drop-down lists, select None, or any combination of the following options (employee and employer rules don't need to be the same):