FAQ 102: 401a4--Which option to calculate the monthly compensation for terminees Problem: What compensation options should I check? Solution: Our programming uses monthly compensation, which must be generated from the annual comp stored in the employee record. This only affects terminees or new entrants where we determine the number of months based on dates of termination and dates of entry.In addition, our clients handle terminees and new entrants in different ways under the regs, so we provide different options. You will have to check within your office and documents to determine which comp to use.The two setup options that affect this calculation are: "Use Actual Mos" (or always use 12 months) and "Use Post-entry" (or use full year comp).Here's an example using the following data:Data: PYE 3/31/07, EE: DOE 10/1/06, DOT 3/15/07EE: Plan Comp \$7,186.40, Post-Entry Comp \$4,771.00The four possible monthly compensation calculation methods are illustrated below:1) Use Actual Mos="Yes" and Use Post-entry="No"11 months - April to Feb (March doesn't count since her DOT is 3/15)7186.40/11 months = 653.30 monthly comp2) Use Actual Mos="Yes" and Use Post-entry="Yes"5 months - October to Feb4771/5 = 954.203) Use Actual Mos="No" and Use Post-entry="No"12 months always7186.40/12 = 598.874 Use Actual Mos="No" and Use Post-entry="Yes"12 months always4771/12 = 397.58