What is Employee Benefits Administration Software?

Author Headshot
written by
Dave Jarecki |

What kind of balancing act does your company have to perform to offer and manage employee benefits? Is it like juggling four bowling pins while riding a unicycle across a high wire? Maybe not. But still, any time you’re tasked with meeting the needs of current employees, providing something that helps to attract new employees, and stay within a budget, things can get tricky.

What does employee benefits administration software do?

Benefits administration software can help you and your organization stay balanced while you focus on the moving parts.

Federal law does not require that small businesses offer certain types of benefits. Still, most companies offer health care and wellness benefits to support employees and attract job seekers. And, when you use benefits administration software, administering benefits packages, and encouraging employees to use their benefits, can be easier and safer for your company.

For instance:

  • Benefits administration software can help you facilitate open enrollment periods easier than a paper system. Most benefits administration software includes an administrative dashboard that lets you view and adjust benefits packages when you need to. And they also give employees control over making claims and updating their information.
  • Benefits administration software can also help you stay compliant with federal and local regulations. This includes items related to the Affordable Care Act (ACA), the Health Insurance Portability and Accountability Act (HIPAA), and others.

And employees can make changes too.

As we mentioned above, things like employee portals and self-service menus give employees more control over making updates and changes.

  • They can manage and change personal information when they need to.
  • This can update their coverage options during open enrollment, or other times when they’ve had a qualifying event, such as a change in their family status.

Plus, when employees can make their own changes, it saves you time from having to do so for them.

So, what details classify a product as benefits administration software? Let’s take a look below. 

Some organizations implement benefits administration software as a standalone solution. Others include it as part of a HR management suite. BeneTrac can help you decide which path might be best for your organization. Request a demo to get started.

Request Your Demo

Defining employee benefits administration software

Generally speaking, benefits administration software is defined as meeting the following criteria:

⦁    Provide a centralized administrator dashboard.
⦁    Allow access to a marketplace of insurance carriers.
⦁    Offer an employee benefits portal so employees can access benefits plans, update their information, and enroll.
⦁    Let administrators create compensation statements.
⦁    Include built-in compliance checking and reporting features.

Building from this list, there are three other key pieces we’d like to call out when it comes to benefits administration software: reporting, security, and transparency.



Most benefits administration software lets HR create customized benefits reports. These reports can be a big help when it comes to streamlining your benefits process, and sharing data with organizational leaders.

⦁    Certain reports help you detect benefits changes during a particular payroll period.
⦁    Others make it easier to audit a monthly medical insurance bill, and help make sure your company and/or employee aren’t accidentally charged for something that wasn’t used.
⦁    Reports can also help you decide how you might want to expand or change your benefits package for the upcoming year.



A manual benefits enrollment process can make it difficult for companies to keep things secure. After all, we’re talking about forms that include social security numbers, home addresses, and other critical personal information.

⦁    With benefits administration software, personal and/or sensitive employee information is stored securely.
⦁    As an administrator, you can set criteria to allow employees to only see data that is relevant to them.



When an employee submits a benefits requests that needs to be approved, your benefits administration software will make every step of the process traceable. This will help minimize issues that might come up later.

⦁    You and employees will have access to information that the benefits provider shares. This can help keep everyone on the same page, and avoid miscommunication.
⦁    This level of transparency can also help explain things like benefits contribution requirements. When this information is easy to find, it can help you catch errors, or resolve issues related to an employee’s coverage.

If you’re offering health and wellness benefits, benefits administration software can help make the process easier for you and your employees, and more compliant for your company.

Your benefits administration software can help identify which benefits provide the most value to employees, while helping you control overall costs. Contact a BeneTrac representative today to learn more.


Contact Us

No one will out ROI you.

Total your savings with our ROI calculator.

No one will out ACA you.

We can help you reduce hours, errors, and potential fines.