FBP stands for Flexible Benefit Plan. This is a way of structuring the salary of an employee. In FBP, employees are given an option to decide which components they want to take and how much they want to take under each component.
The components that employees can take their salary under, are called as FBP Components. There are two kinds of FBP components i.e. Monthly and Claim/Annual.
- A monthly component is paid by default every month. Typical examples of monthly components are HRA, conveyance, vehicle lease, etc.
- A claim/annual item needs to be claimed by the employees. Until they claim, the money will be with the company.
To navigate the FBP Planner page, go to Payroll > Admin > FBP Planner. The FBP Planner page has the Create and Release, View Plan, Release, Lock/consider and Considered Plan tabs. You have to select the employees from the list that appears under every tab, based on the filters you choose.
Please look at the FBP concepts for a deeper understanding of FBP
Creating a Plan
The FBP plan can be created for all eligible employees. The plan has to be created at the start of the month or FBP year and released to the employee. To create a plan, select check box appearing adjacent to the employee name for whom the plan has to be created.
You can create a plan by clicking the Create Plan button. You can also click on the Create and Release button to create the plan and release it for the selected employees, to declare it. If a plan already exists, it can be carried forward to a new plan.
Figure 1: Creating a Plan
CTC has to be defined before creating the plan.
Releasing the Plan
You can release the created plan from the Release tab. Select the employee from the check box adjacent to their respective name and click the Release button.
Figure 2: Releasing a Plan
If Employee Self Service is enabled, employee user shall be able to declare the FBP plan.
Post declaration, if employee wants to edit the plan, they have to request or wait the Admin to unlock FPB.
Viewing the Plan
Employee and Admin can view the plan but only the Admin would be able to edit and delete the plan.
Figure 3: Viewing a Plan
Locking & Considering the Plan
Once the FBP is declared by the employee or when Admin finalizes the FBP plans, Admin can lock and consider the plan for the month.
Figure 4: Locking/Considering Plan
When it is locked and considered, FBP plan can not be modified further by Employee.
When locked and considered, the data will be set to consider for computation. In effect, system shall consider the declared flexible benefits plan for salary computation.
Revise Considered Plan
Once the plan is locked and considered, Admin has the provision to edit or revise the plan for computation.
Figure 5: Viewing Considered Plans
On behalf of an employee, Admin can edit the plan, save and then process the payroll to make the change in effect. If a revision is required by an employee in the same month itself, Admin shall delete the considered plan and once again create and release a fresh plan to employee. Refer to step 2 of Employee FBP Declaration to know more more about how Admin can declare the FBP components on behalf of an employee.
Figure 6: Revising Considered Plan
Change FBP Plan in the Same Month as CTC
If an employee's CTC is changed mid-month, a Refresh button will appear in the FBP Planner page. Clicking the Refresh button will automatically recalculate the FBP Total/ Entitlement Values, as per the changed CTC.
Any change in CTC would mean that the administrator must wait for the next payroll month to release the Payroll Inputs lock, update the FBP plan and lock it again. Now, the administrator can avoid this hassle and update the FBP plan in the same month as CTC is updated. In this case, a Refresh button appears which can be used to recalculate the FBP Total/ Entitlement Values, as per the changed CTC.
Figure 7- FBP Plan Change in the same month as CTC on clicking Refresh
Upon clicking Refresh, the below pop-up appears prompting your action.
Figure 8: Refresh pop-up
Figure 9 - Excel Sheet of Employees with Current FBP Plan and Entitlement Less Than the Previous Plan
FBP Plan Mass Delete
The already released plans can now be deleted, all at once. You can perform the following steps to to delete FBP plans of employees in bulk:
- Click the Release tab.
- Select the check box against the employees' name whose FBP plan should be deleted or check the Employee Name box, to select the FBP plans of all the employees.
- Click the Delete Plan button.
Admin can generate a report and see the list of employees those who have declared FBP, plan month wise with details as shown in the figure. Also a report can be generated to know the list of employees with corresponding FBP details, which are considered for a payroll month. This report is enabled under Reports.
Figure 10: Generating FBP Report