Cafe 1 (CAFE1)

If the Special Routine ID is Cafe 1 (CAFE1), the Employer Contribution calculation is based on an employee’s medical, dental, or vision coverage level, waived, or no coverage found. Flat rates are associated to each value using the Amount/Percent fields:

  • Amount/Percent 1 is for Employee only coverage, Amount.

  • Amount/Percent 2 is for Employee + 1 Dependent coverage, Amount.

  • Amount/Percent 3 is for Family coverage, Amount.

  • Amount/Percent 4 is for Waived coverage, Amount.

  • Amount/Percent 5 is for Minimum allowed (if the employee does not meet any of the first four options the employer contribution is the minimum amount).

  • Amount/Percent 6 is for Coverage Type. A cafeteria benefit of the indicated coverage type is required to process the employer contribution. Coverage Types are indicated as follows:

  • 0 = Medical

  • 1 = Dental

  • 2 = Vision

  • Amount/Percent 7, when set to 1 and the Employee Benefit Amount is zero for the coverage type indicated in Amount/Percent 6, the Employer Fringe Benefit Amount associated with the employee benefit is used when processing the employer contribution.

  • For example: The Cafe 1 benefit has Amount/Percent 6 = 1 and Amount/Percent 7 = 1. The dental cafeteria benefit deduction amount = $0, the dental employer fringe deduction amount = $25 and the employer contribution amount = $30. When allocating the employer contribution towards the dental employee benefit, the employer fringe deduction amount is used instead. The employer contribution is greater, so the remaining contribution is $30 – $25 = $5. The remaining contribution can be applied to additional cafeteria benefits if applicable.

  • When determining the Taxable Cash Back limit for an employee, the Café 1 Special Routine first looks up to DED_PARM for the employee to determine if there is an amount specified in the Special Routine Value field that should be used. If there is no value or the value is zero, the routine looks up to Cafeteria Cash Benefit Limit on DED_PLAN to determine the Taxable Cash limit. If there is no limit found on DED_PARM or DED_PLAN, the Taxable Cash amount is not  capped.