As of May 20th, 2024, Employee Navigator and Paylocity exchange Employer Contributions. The purpose of this article is to explain how to set this up in Employee Navigator if your payroll integration is already Live.
- What do we mean by Employer Contributions/Earnings?
- What to keep in mind
- What we've done to "reset" Employee Navigator for you
- What you must read before taking any action in Employee Navigator
- How to configure the exchange of Employer Contributions
What do we mean by Employer Contributions/Earnings?
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What is supported:
- The employer memo codes that are used to solely track the employer contribution to certain benefit types on a per pay period basis, such as, but not limited to:
- ER cost of Medical
- ER cost of Dental
- ER cost of Vision
- ER cost of Hospital Indemnity when the employee pays pre-tax
- The employer memo codes that are used to solely track the employer contribution to certain benefit types on a per pay period basis, such as, but not limited to:
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What is not supported by either EN or Paylocity at this time:
- Employer HSA contributions
- Employer Group Life, Group AD&D or combined Group Life/AD&D plans
- Imputed income for Domestic Partners
- Employer contributions for Commuter benefits
What to keep in mind
- Not all companies are required to track the ER cost of Medical.
- Companies with 250+ FTEs are required to. For other benefit types, tracking employer contributions might be optional.
- There are specific Earning codes that should never be mapped into Employee Navigator
- They are available here for you to see: CLICK HERE
- If any of these types of codes are mapped into our system, then it will negatively impact the client's payroll. You should not be mapping these.
- Codes can still be mapped for the unsupported benefit types above (HSA, Group Life, etc.) to be used for reporting purposes within EN system reporting; however, no data will be sent via the API to Paylocity.
What we've done to "reset" Employee Navigator for you
- We've added a new set of Transmission options just for ER contributions
- We've cleared any and all pre-existing Employer codes mapped into our system in the past
- Many customers were using either mock codes or re-using their Deduction codes as their ER codes. To avoid significant data quality issues, we cleared all Employer codes to allow HR to review and map the correct Employer Memo code from Paylocity into Employee Navigator.
- You will see the below as a blank slate if you are in a 'Demographics, Deductions & Earnings Live' status for the payroll integration within your payroll group(s) code settings.
- Any previously mapped ER codes will be cleared, and your default Employer Code check-box will = "NO"
What you must do before taking any action in Employee Navigator
There are significant issues that can be created by mapping incorrect Earning codes into our system, which can place time-sensitive pressure on both Paylocity and the HR Admin themselves as this will directly impact their subsequent payrolls they process.
A broker should not be mapping ER codes on a customer's behalf. HR or a client payroll admin should be the one to map these into our system as they will be the only ones to truly know what each code represents in Payroll.
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Before adjusting your Employer Code settings in our system, you must read this documentation: Click here to read Paylocity's mandatory documentation on Employer Contributions
- If you have any questions or concerns, please reach out to Paylocity directly before taking any further action in Employee Navigator.
- We highly recommend reviewing our Paylocity & EN webinar that covered this topic as well, which can be found here
- Any questions about managing Employer Contributions should be directed to Service@paylocity.com to start the conversation there.
How to configure the exchange of Employer Contributions for your integration with Paylocity
Once you've read the required documentation above and have contacted Paylocity (or Employee Navigator's Payroll team if need be) with any outstanding questions, your steps to add, say, the exchange of your Employer Medical contributions are below.
- Go to your Payroll tab in EN --> Deduction codes --> View
- Click the 'Vendor Payroll Codes' button --> Refresh codes
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Then, click the Edit 'pencil' icon to enter your Medical plan --> Check off 'Always Send' for the transmission option & 'Yes' for the Employer code box.
- HR should choose the correct ER memo code for Medical.
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Finally, save your change. Employee Navigator will show the below prompt confirming that we are going to auto-send all Employer costs for this plan to Paylocity --> Hit 'Confirm'.
- Once this is completed, we will instantly write & send all Employer contributions for this specific plan to payroll for any employees who are enrolled.
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