MegaFlex Routine (MGFLX)

When the Special Routine ID is MegaFlex Routine (MGFLX), the Employer Contribution calculation is based on a percentage of an employee’s calculated salary that can change based on the employee’s continuous service years and whether the employee is enrolled in MegaFlex Routine Retirement Plan. The MegaFlex Routine requires the Amount/Percent fields to be populated in the following manner:

  • Amount/Percent 1 is the base percentage an employee receives as an employer contribution. 

  • Amount/Percent 2 is an additional percentage amount applied to employees not enrolled in a MegaFlex Retirement Plan that have 5 years or more of service based on the Benefit Progression Date.

  • Amount/Percent 3 is an additional percentage amount applied to employees enrolled in a MegaFlex Routine Retirement Plan.

  • Amount/Percent 4 is the minimum employer contribution amount.

The Calculated Salary Type and Calculated Salary Plan fields are used to specify the Calculation Salary ‘reference’ deduction to be passed to Gross-to-Net (GTN) to attain the employee’s calculated salary to be used when calculating the employer contribution.

The Cafeteria Cash Benefit Limit field allows the user to specify a limit on the amount of taxable cash back the employee can receive when there is a positive balance remaining after the Cafeteria Benefits have been processed. When the Cafeteria Cash Benefit Limit field on the plan is 0.00, the GTN process then performs a check to see if there is an employee-specific cap from the DED_PARM record’s Special Routine Value (SRV) field. If the value in the SRV field is also 0, no limit is placed on the amount an employee can receive in cash benefit. The positive balance remaining after all Cafeteria Benefits have been processed is applied to the employee’s taxable earnings as a cash benefit. The Pay Event to be used to generate the cash benefit is specified on Pay and Leave Category (CATG) in the Taxable Cash Event field.

MegaFlex Routine benefits must be set up at the type level with a Deduction Class ID of Use Alternate Rates Table’. The MegaFlex Routine utilizes the Deduction Plan Alternate Rates (DEDA) reference page to specify additional percentage amounts to be applied for calculating the employer contribution when an employee has 10 or more years of continuous service years.

If an employee is enrolled in a benefit with the MegaFlex Routine Retirement Plan check box checked at the type level, the value stored in Amount/Percent 3 for the MegaFlex Routine benefit is added to the base percentage in Amount/Percent 1 when calculating the employer contribution. Employees are cannot receive the both additional amounts in Amount/Percent 2 and Amount/Percent 3 when calculating the employer contribution.

The amounts specified in the Amount/Percent fields on the MegaFlex Routine are percentage amounts and are divided by 100 when processing in GTN. The amount specified on Deduction Plan Alternate Rates (DEDA) is not a percentage amount and is used as is.

Note: This functionality is only available when utilizing the Next Generation Payroll service.

MegaFlex Routine Example:

Employer Fringe Benefit Plan (EFBP):

  • Deduction Type: MGFLX1

  • Deduction Plan: MGFLX1

  • Amount/Percent 1: 14.50

  • Amount/Percent 2: 2.50

  • Amount/Percent 3: 5.00

  • Amount/Percent 4: 400

  • Calculated Salary Type: CLSR

  • Calculated Salary Plan: CLSR

  • Cafeteria Cash Benefit Limit: 0

  • Special Routine Value on DED_PARM: 175

Benefits Progression Details:

  • Employee’s benefit progression start date is 01/01/2014

  • The MGFLX1 benefit has Alternate Rate End set as 01/01/2024.

  • On DEDA, MGFLX1 has an entry with Minimum Number of Months = 120 and Semi-Monthly Amount = 0.50.

A semi-monthly employee has the following benefits:

  • Medical benefit for $200 per pay period.

  • Dental benefit for $75 per pay period.

  • Retirement benefit for $50 with MegaFlex Routine Retirement Plan checked.

  • MegaFlex Routine benefit.

The employee’s base pay is $75000 annually with a base pay bonus of 20%.

The process for determining the employer contribution is as follows:

  • Retrieve Amount/Percent 1 value of 14.5%

  • Determine if the employee is enrolled in a MegaFlex Routine Retirement Plan

  • Yes, Add Amount/Percent 1 and Amount/Percent 3: 14.5% + 5.0% = 19%

  • Determine if the employee is enrolled in a MegaFlex Routine Retirement PlanDetermine if the employee has 10 or more years of continuous service

  • Yes, add the amount from DEDA to the current percentage amount: 19% + 0.50 = 19.5%

  • Retrieve the employee’s calculated salary from the CLSR deduction

  • Calculated Salary = $3750

  • Calculate the employer contribution

  • Calculated Salary * current percentage amount: $3750 * 19.5% = $731.25

The employer contribution will be used as follows:

  • All employee benefits totaling $325 are covered. 

  • The remaining employer contribution is 406.25. Special Routine Value is $175 so the employee will receive a taxable cash benefit of $175.