Concept: Custom Calculated Health Care Rates

You can create numeric calculations to calculate premiums for your health care plans. When you assign a calculated health care rate to a health care plan type and enroll workers on that plan, those workers' premiums automatically update if a factor drives the rate calculation to change.

You must have

Modify

access in the

Set Up: Calculations - Generic

domain in the Core Payroll functional area to create calculations for your health care rates.

For example, if you adjust employee and employer contributions based on workers' weekly scheduled hours (like with different premiums for 40 hours, 35 hours, 30 hours, etc.) you can create a custom calculated health care rate instead of maintaining multiple benefit groups for each distinct rate.

When you select

Custom Calculated Health Care

rate on the

Create Health Care Rate

task, Workday removes demographic factor options. Workday also replaces employee cost fields on the

Rate Bands

tab with calculated amount fields. In these fields, you can select

Create

to create your custom calculations.

Workers can view their calculated health care rate on the plan selection page when they’re enrolling. After a worker enrolls in a health care plan that uses a calculated health care rate, they can view their calculated rate on:

Their benefits summary.
Their pay slip.

If a factor drives their calculated rate to change, such as the worker's age falling into a new age band, Workday updates their premium dynamically.