New Jersey Local Health Routine (OCHLT)
The New Jersey Local Health Routine selection within the Special Routine ID field of the Employee Fringe Benefit Plan (BENP) reference table is used to determine the employee contribution towards a health benefit cost. When this selection is made for a benefit plan, Gross-to-Net (GTN) performs two calculations. The larger of the two calculation is used as the employee portion of the benefit, prorated into the pay period amount (weekly, biweekly, semi-monthly, monthly, annually).
The first GTN calculation is the percentage of the premium (annual cost). The percentage is defined within the Minimum Annual Salary field on the Employee Benefit Contribution (EBCL) reference page and it is based on the current pay period annualized salary of an employee. GTN finds the correct EBCL record where the benefit type and benefit plan enrolled by the employee matches on an EBCL record, and, where the employee annualized salary is equal to or greater than the value within the Minimum Annual Salary field for the same EBCL record. Once the percentage is determined, it is multiplied by the premium amount defined within the Amount/Percent 2 field on BENP for the enrolled benefit type and plan to find the result of the first calculation.
The second GTN calculation is the current pay period annualized salary of an employee multiplied by the percent value within the Amount/Percent 1 field on BENP for the enrolled benefit type and plan.
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Employee is paid biweekly and enrolled in a single coverage benefit type and plan where the Special Routine ID is New Jersey Local Health Routine, Amount/Percent 1 is 1.5, and Amount/Percent 2 is 11497.68.
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The current pay period annualized salary for the employee is $26,700.
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EBCL record 1 has the same single coverage benefit type and benefit plan as the employee with the Minimum Annual Salary of $25000 and the Employee Contribution Percentage of 0.075000.
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EBCL record 2 has the same single coverage benefit type and benefit plan as the employee with the Minimum Annual Salary of $30000 and the Employee Contribution Percentage of 0.100000.
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GTN
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First Calculation: 0.075x11,497.68/26 = 33.17
Note, the Employee Contribution Percentage within EBCL 1 is used due to the annualized salary being equal to or greater than $25,000 but less than $30,000.
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Second Calculation: 0.015x26,700/26 = 15.40
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The employee contribution toward the health benefit is $33.17 as the first calculation is greater than the second calculation.
Employee is paid biweekly and enrolled in a single coverage benefit type and plan where the Special Routine ID is New Jersey Local Health Routine, Amount/Percent 1 is 3.5, and Amount/Percent 2 is 11497.68.
The current pay period annualized salary for the employee is $26,700
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EBCL record 1 has the same single coverage benefit type and benefit plan as the employee with the Minimum Annual Salary of $25000 and the Employee Contribution Percentage of 0.075000.
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EBCL record 2 has the same single coverage benefit type and benefit plan as the employee with the Minimum Annual Salary of $30000 and the Employee Contribution Percentage of 0.100000.
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GTN
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First Calculation: 0.075x11,497.68/26 = 33.17
Note, the Employee Contribution Percentage within EBCL 1 is used due to the annualized salary being equal to or greater than $25,000 but less than $30,000.
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Second Calculation: 0.035x26,700/26 = 35.94
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The employee contribution toward the health benefit is $35.94 as the second calculation is greater than the first calculation.
The logic for the New Jersey Local Health Routine selection within the Special Routine ID drop down field works the same when selected for a record on the Deduction Plan (DPLN) and Employer Fringe Benefit Plan (EFBP) reference tables.
Additional information about the Employee Benefit Contribution (EBCL) reference page can be found within the CGI Advantage 4 HRM Benefits Processing User Guide.
