For reimbursement plans, when Dayforce calculates employee contributions for reimbursement plans for which a dollar amount annual contribution is made, it divides the annual contribution amount by the number of pay periods remaining in the employee's pay group calendar for the plan year. The “remaining” pay periods are calculated as the number of pay periods between the benefit effective start date and the plan year end date.
Reimbursement plan elections are written or posted to the payroll only when at least one pay period is left in the plan year.
Note: In cases where the election end date precedes the plan year end date, Dayforce still uses the plan year end date to determine the per pay contribution amount.
If employees enroll in a reimbursement plan option that replaces an existing reimbursement election, the mapped payroll elections write the reimbursement limit to payroll with no consideration for to-date totals that might have been previously deducted.
Any to-date values already deducted will be considered when Dayforce calculates the deductions that are taken. If the employee elects a new annual amount that’s less than what has already been deducted to-date, no new deductions occur because the employee has already met or surpassed the new limit. If the employee elects a new annual amount that’s greater than what has been deducted to-date, the deductions occur until the new limit is reached.