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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Insurance Costs

Steps: Set Up Insurance Costs

Workday calculates insurance costs as: (Insurance Coverage Level x Insurance Rate) = Insurance Cost
Defining insurance coverage levels separately from insurance rates enables greater flexibility. You can associate a single rate with multiple insurance coverages. You can also create an insurance coverage and associate it with different insurance rates.
You can create banded insurance rates based on these demographic factors in combination with gender and tobacco use:
  • Age
  • Salary
  • Length of service
  1. Access the
    Maintain Benefit Annual Rate Types
     task.
    Define the type of employee annual salary you want to use to when calculating benefit costs or coverage.
    Security: Set Up: Benefits in the Benefits functional area.
  2. Create coverage levels.
    Access these tasks:
    • Create Amount Based Coverage Levels
       to create flat amount coverage levels.
      Example: For coverage levels of 100,000, 200,000, and 300,000 USD, enter:
      • 100,000 as the coverage start.
      • 300,000 as coverage end.
      • 100,000 as the coverage increment.
    • Create Percent Based Coverage Levels
       to create insurance coverage options for percentage of salary type insurance plans.
    • Create Multiplier Based Coverage Levels
       to create insurance coverage options for multiples of salary type insurance plans.
      Example: For coverage levels of 1 x salary, 2 x salary, and 3 x salary, enter:
      • 1 as the multiplier start.
      • 3 as the multiplier end.
      • 1 as the multiplier increment.