Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Benefit Surcharges

Steps: Set Up Benefit Surcharges

For spouse/domestic partner and dependent relationships, Workday enables you to:
  • Track whether the relationship is eligible or enrolled in their own health care plan.
  • Create a flat amount surcharge and apply that surcharge to specific health care plans or rates.
  • Create tobacco surcharges for the employee and their dependents.
  1. Security:
    Set Up: Benefits
     in the Benefits functional area.
  2. Add dependents.
    For spouses or domestic partners, you can select the check box for
    This person is or could be enrolled in Health Care coverage elsewhere
    . See Manage Dependents and Beneficiaries.
    You can also indicate whether a spouse or domestic partner uses tobacco for
    Tobacco Use
    .
  3. Assign benefit surcharges to a health care plan.
  4. Assign benefit surcharges to health care rates.
During enrollment, Workday checks for spousal and tobacco surcharges.
  • For spousal surcharges, Workday checks:
    • If an elected health care plan or rates associated with the plan have a benefit surcharge associated with it.
    • If the employee has elected coverage for a spouse or domestic partner that has the
      This person is or could be enrolled in Health Care coverage elsewhere
       check box selected.
    • If the coverage target has a surcharge and covers spouses or domestic partners.
    If these 3 conditions are met, then Workday adds the surcharge to the cost of the benefits.
  • Workday checks for tobacco use surcharges. If the employee, or spouse (or domestic partner), indicates tobacco use, Workday adds the surcharge.
Workday sends the surcharges to Workday Payroll or Payroll Interface as deductions.
Use the:
  • Delete Benefit Surcharge
     task to delete surcharges that aren’t assigned to a health care plan or rate.
  • View Benefit Surcharge
     report to see detailed information about the surcharge.