Creating and Managing Benefits in Keka

Managing employee benefits effectively is crucial for retaining top talent and ensuring employee satisfaction. In the US, offering comprehensive benefits is also a key component of compliance with various labor laws. This guide will provide an overview of how to set up and manage benefits in your payroll system, with a focus on health and finance benefits.

Table of contents

• Types of Benefits in Keka

• Benefit Integration in Keka

• Creating a New Benefit

• Adding Health Benefit

• Assigning benefit to employees

• Adding Financial Benefits

• Managing existing benefits

Overview of Benefits Management

Benefits management involves setting up various perks and contributions for employees, including health insurance, retirement plans, and other financial benefits. Effective benefits management ensures that employees receive the necessary support and resources for their well-being and financial security.

Types of Benefits in Keka. 

1. Health Benefits: These include medical, dental, and vision insurance plans. You can select carriers and set up different plans based on the needs of your workforce.

2. Finance Benefits: These include retirement plans like 401(k), 403(b), and other financial planning options. You can offer various contribution options to help employees save for retirement.

Benefit Integration in Keka

Keka provides seamless integration with various benefits carriers to manage employee benefits effectively. Currently, Keka supports integration with three major carriers:

• SimplyInsured: Offers medical, dental, and vision benefits.

• Guideline: Provides retirement and other financial planning services.

• Next: Specialices in business insurance.

Setting Up Integrations

When setting up benefits for the first time, you will see the option to connect with a broker. You can choose from SimplyInsured, Guideline, or Next to integrate their services with your Keka account.

After selecting the carrier, you will be redirected to their respective websites where you can either purchase a new benefit plan or log in to connect your existing plan.

To create a new benefit in Keka, follow these steps

Go to the Payroll (1) tab on your and select the Benefits (2) tab to access the benefits management interface.

Select Create new benefits and specify whether you are adding a health benefit or a financial benefit.

Adding Health Benefit

Health Benefits Available to setup in Keka

• Medical Insurance: A medical benefit belonging to a Section 125 Cafeteria plan helps employees pay for qualified expenses related to medical care. This typically includes doctor's visits, hospital stays, surgeries, and prescription medications.
• Others (Medical Benefit): A supplemental benefit within a Section 125 Cafeteria plan that helps employees pay for qualified expenses not covered under the primary medical plan.

• Flexible Savings Account - Dependent Care (FSA): A dependent care flexible spending account (FSA) is a tax-advantaged account that allows employees to pay for dependent care expenses, such as childcare or eldercare, with pre-tax dollars.

• Flexible Savings Account - Medical (FSA): A medical flexible spending account (FSA) is a tax-advantaged account that allows employees to pay for eligible medical expenses with pre-tax dollars.

• Health Savings Account (HSA): A health savings account (HSA) is a tax-advantaged medical savings account available to employees enrolled in a high-deductible health plan (HDHP). Funds accumulated in the HSA are not subject to federal income tax at the time of deposit.

• Vision: A vision benefit belonging to a Section 125 Cafeteria plan helps employees pay for qualified expenses related to vision care. This includes eye exams, glasses, contact lenses, and sometimes corrective surgeries like LASIK.

• Dental: A dental benefit belonging to a Section 125 Cafeteria plan helps employees pay for qualified expenses related to dental care. This includes routine check-ups, cleanings, x-rays, fillings, and more complex procedures like root canals and orthodontics.

When choosing health benefits, you must first select from the options mentioned above. Once you've made your selection, the next step is to enter the details of the chosen benefit.

Enter Benefit Details

• Select Carrier: Choose the insurance carrier from the dropdown list.
• Name: Enter a descriptive name for the benefit.
• Description: Provide a detailed description of the benefit, including what is covered.
• Period: Select the period during which the benefit will be active, such as per pay frequency or monthly.
• Start Date and End Date: Set the dates when the benefit coverage begins and ends.

Set Contribution Details

• Employee Contribution: Specify the amount or percentage the employee will contribute towards the benefit.
• Employer Contribution: Specify the amount or percentage the employer will contribute.

Review the entered details and click Save to create the benefit.

Assigning benefit for the employee:

After creating the benefit, you will be able to view all the details you entered. The next step is to assign the benefit to the employee. You will see a button to assign the newly created benefit to employees.

On the following page, you will see a list of all employees within this legal entity who have not yet been assigned this benefit. You can choose to assign them individually or in bulk (1) by selecting them and clicking on the Assign Employees (2) button. 

After clicking on assign employees you will have to select start date and end date for this benefit and then click confirm & assign.

Adding Financial Benefits

Financial benefits primarily include retirement plans such as 401(k), 403(b), Roth IRA, and other savings plans.

Financial Benefits Available to setup in Keka

• 401(k):  A 401(k) plan is a tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code. It allows employees to save for retirement with pre-tax dollars, reducing their taxable income.

• 403(b): A 403(b) plan is a retirement savings plan available to employees of certain public schools, tax-exempt organizations, and ministers. It has tax treatment similar to a 401(k) plan.

• Roth 401(k): A Roth 401(k) plan is similar to a traditional 401(k), but contributions are made with after-tax dollars. Employees can withdraw the contributions and earnings tax-free during retirement.
• Roth 403(b): A Roth 403(b) plan is similar to a Roth 401(k) but is available to employees of public schools and certain tax-exempt organizations. Contributions are made with after-tax dollars.

• IRA (Individual Retirement Account): An IRA is a retirement savings account that allows individuals to save for retirement with tax-free growth or on a tax-deferred basis. The SIMPLE IRA is a tax-deferred employer-provided retirement plan.

• Disability/Leave: Disability insurance provides income replacement benefits to employees who are unable to work due to illness or injury. Leave benefits cover various types of employee leave.

• Group Term Life Insurance:  Group term life insurance is a type of life insurance coverage provided to employees at a reduced cost or no cost as part of a benefits package. It is typically offered to all employees within a company.

When choosing finance benefits, you must first select from the options mentioned above. Once you've made your selection, the next step is to enter the details of the chosen benefit.

Enter Benefit Details

• Name: Enter a descriptive name for the benefit.
• Description: Provide a detailed description of the benefit, including what is covered.
• Period: Select the period during which the benefit will be active, such as per pay frequency or monthly.
• Start Date and End Date: Set the dates when the benefit coverage begins and ends.

Set Contribution Details

• Employee Contribution: Specify the amount or percentage the employee will contribute towards the benefit.
• Employer Contribution: Specify the amount or percentage the employer will contribute.

Review the entered details and click Save to create the benefit.

Managing existing benefits

Once you have set up all the essential benefits needed by your organization, you can easily manage them in the benefits (1) section. All the health benefits you have created will be displayed in the health benefits section (2), while the financial benefits (3) will be shown in the financial benefits section. You can simply click on the dropdown (4) icon to hide or view these benefits separately.

Upon clicking the dropdown, you will be able to view all the various benefits, including their names, the number of employees enrolled in each benefit plan, the start and end dates of coverage, and an actions column for further management.

By clicking on the three dots in the actions column next to any benefit, you can assign new employees to that benefit, edit the benefit details, or delete the benefit altogether.