Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-12-15
Create Benefit Surcharges

Create Benefit Surcharges

  • Create related person types for tobacco use surcharges.
  • Security:
    Set Up: Benefits
     in the Benefits functional area.
You can create surcharges for health care plans and rates. Workday delivers 2 surcharge types: Spouse and Tobacco Use. You can create tobacco use surcharges for workers and any dependents that use tobacco.
  1. Access the
    Create Benefit Surcharge
     task and select the type of surcharge.
    As you complete the task, consider:
    Option Description
    Currency
    If the currency you enter is different from the currency of the employee, Workday converts the surcharge amount into the currency of the employee.
    Frequency
    Workday converts the amount of the benefit surcharge using the frequency of the benefit group, if it differs from the benefit credit.
  2. (Optional) To create tobacco use surcharges for spouse or domestic partner and dependents, select
    Tobacco Surcharge Type
    .
    Create a surcharge for every individual or group of person types that a worker can select for their plan. You can create an individual person type (Example: Spouse) or a group of person types (Example: Employee + Spouse + 1 Child).
    When a worker selects health care for certain target types during enrollment, Workday searches the rate bands for surcharges based on the person type. Workday first searches for a matching group. If it can't find a matching group, it searches individual person types. When it can't find any match, Workday applies the surcharges when:
    • The requested count is higher than the maximum configured count. Workday rounds down to the maximum count and applies the assigned surcharge.
    • The requested count is less than the maximum configured count. Workday applies a surcharge of zero.
    As you complete this section, consider:
    Option Description
    Person Type
    Select an individual person type by selecting from the prompt. Create a group of person types by adding additional rows that are associated with an
    Amount
     value.
    Count
    The number of individuals included in the person type. Example: For a child person type, you might select 2.
    Amount
    Can be the amount for an individual person type or a group.
Workday creates the surcharges and makes them available for benefit plan rates.
This example displays how Workday matches worker elections to tobacco surcharge types.
You create these surcharges:
Groups
Person Type
Count
Amount (USD)
Employee
1
$10
Spouse
1
$7
1 Child
1
$5
2 Children
2
$11
4 Children
4
$15
Employee + Spouse
Employee
1
$20
Spouse
1
Employee + 1 Child
Employee
1
$18
Child
1
During enrollment, Alysse elects health care coverage for herself and her family. If she selects:
  • Employee + 1 Child
    , Workday locates the matching group and applies a surcharge of $18 USD.
  • Employee + 2 Children
    , Workday can't locate a matching group, so it searches for individual person types. Workday finds the matching person types of
    Employee
     and
    2 Children
     and applies a surcharge of $21 USD.
  • Employee+ 5 Children
    , Workday finds
    Employee
    , but can't find a match for 5 children. Alysse's selection of 5 children is above the highest count for any child. Workday rounds down to the highest count and applies a surcharge of $25.
  • Employee+ 3 Children
    , Workday finds
    Employee
    , but can't find a match for 3 children. Because the count for children is under the maximum number, Workday calculates a surcharge of zero for the children. Workday applies a surcharge of $10 for the employee.
Add surcharges to health care benefit plans and rates.