BN08.1 – Flex Credits

About BN08.1

Use Flex Credits (BN08.1) to define - the basis for which employees receive flex credits in a flex plan for one flex plan year, and - how much of an employee's salary can be spent on a pre-tax basis. Use BN08.1 before the beginning of each flex plan year. **Processing Effect The parameters you define in this form are used to calculate flex credits for employees in BN45.1 (Employee Flex Credits) and BN145 (Flex CreditsCalculation).

More information: You have the following methods to give employees flex credits before they elect benefits. - The same amount to every eligible employee. For example, all employees in a flex plan receive $1,000 to buy benefits. - As a percentage of each employee's salary. For example, employees receive flex credits equal to 10 percent of their salary. An employee who earns $30,000 receives $3,000 to buy benefits. - An amount for employees' age, years of service, number of covered dependents, and lifestyle points. For age and service, you can give credits based on an employee's annual salary or as a flat amount. For example, 50 year-old employees receive $3 for each $1,000 of their salary. A 50year-old employee who makes $50,000 receives $150 (50,000/1,000 = 50 x 3 = 150).

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