Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-03-13
Create Insurance Coverages

Create Insurance Coverages

Security:
Set Up: Benefits
 in the Benefits functional area.
Create insurance coverages that can be based on:
  • Increment of Currency Coverage (flat amounts).
  • Multiples of Salary Coverage (2 x salary).
  • Percent of Salary Coverage (60% of salary).
  • Multiples of Dependents Coverage (2 multiples on spouse and on each dependent child).
  1. Access the
    Create Insurance Coverage
     task.
  2. Select the
    Insurance Coverage to Create
    .
    Option Description
    Increment of Currency Coverage
    Enables users to select their insurance coverage as an amount of currency, such as $5000, $10,000, or $15,000.
    Multiples of Dependent Coverage
    Enables users to select coverage as a multiple of a configured amount. You can set a different amount for spouse and child dependents. Example: If 1 multiple is $10,000 for spouse and $5,000 for children, selecting 2 multiples results in $20,000 coverage for spouse and $10,000 coverage for children.
    Workday automatically enrolls dependents that meet the eligibility rule. You can't manually add or remove dependents from the plan.
    U.S. federal government customers must calculate the cost for this type of coverage by multiplying the rate by the number of multiples. To calculate the cost this way:
    • Use the flat rate type of insurance rate.
    • Ensure that the benefit plan is mapped to the Option C - Family plan type, using the
      Maintain FEGLI Plan Mapping
       task.
    Multiples of Salary Coverage
    Enables users to select their insurance coverage as a multiple of salary, such as 1x, 2x, or 3x.
    Percent of Salary Coverage
    Enables users to select their insurance coverage as a percentage of salary, such as 50%, 60%, or 70%.
  3. Complete the task:
    Option Description
    Amount Based Coverage Levels name
    Only available to
    Increment of Currency Coverage
     types.
    Coverage Amounts
    Only available to
    Increment of Currency Coverage
     types.
    Salary Minimum Multiplier
    Salary Maximum Multiplier
    Only available to
    Increment of Currency Coverage
     types.
    Define the minimum amount of coverage an employee can elect based on the salary of the employee. Example: 1x salary to 6x salary.
    Minimum Amount
    Maximum Amount
    Only available to
    Multiples of Salary Coverage
     and
    Percent of Salary Coverage
     types.
    Define the minimum and maximum amount of coverage an employee can elect based on the salary of the employee.
    Example: If the minimum amount of coverage is 50,000, and an employee making 45,000 elects 1x salary, the coverage amount based on salary is less than the minimum.
    If the maximum amount of coverage is 500,000, and an employee making 100,000 elects 6x salary, the coverage amount based on salary exceeds the maximum.
    Salary Source
    If you select
    Salary
     as a demographic factor, specify the rate band Workday uses to retrieve the employee and employer rates. Select from:
    • Benefits Annualized Rate or Compensation Elements:
       If available, Workday uses the benefits annualized rate; if not, Workday uses compensation elements. If you select this option, the
      Compensation Element
       field becomes available.
    • Benefits Annualized Rate or Total Base Pay:
       If available, Workday uses the benefits annualized rate; if not, Workday uses the base salary.
    Benefit Annual Rate Type
    Available if you selected
    Benefits Annualized Rate or Compensation Elements
     or
    Compensation Elements
    .
    Compensation Element
    Available if you selected
    Benefits Annualized Rate or Compensation Elements
    .
    Round Amount To
    Enter the value you want Workday to round to.
    Example: If you want Workday to round to the nearest whole number, enter 1.
    Rounding Rule
    Choices are:
    • Round Up:
       Example: If the amount in this field is 1 USD, and the employee's calculated cost is 1.50 USD, Workday rounds the cost up to 2 USD.
    • Round Down:
       Example: If the amount in this field is 1 USD, and the employee's calculated cost is 1.50 USD, Workday rounds the cost down to 1 USD.
    • Round Up On Number:
       Specify the number to round up on. Example: Suppose the amount in the
      Round Amount To
       field is 1 USD, and the
      Round On Number
       is 0.5. In this case, Workday rounds up any costs greater than or equal to 0.5, and rounds down any costs less than 0.5. If the calculated cost is 1.49 USD, Workday rounds down to 1 USD. If the cost is 1.5 USD, Workday rounds up to 2 USD.
    Benefit Multiplier Order
    Only available when you enter a value greater than zero in the
    Round Amount To
     field. Indicate when you want the rounding to occur:
    Example: You select the
    Round Up On Number
     in the
    Rounding Rule
     field and enter 400 in the
    Round on Number
     field. An employee making 50,211 selects a coverage level of 2x salary. If you select
    Round Amount then Multiply
    , Workday rounds the salary down to 50,000 before multiplying by 2 to determine the coverage amount: 100,000. If you select
    Multiply then Round Result
    , Workday multiplies 50,211 by 2 to obtain the coverage amount—100,422—and then rounds the result up to 101,000.
    Do Not Round Final (If Age Adjusted)
    Applies only if there is an age adjustment rule on the insurance plan. If selected, Workday doesn't round the final coverage amount.
    Example: An employee makes 137,177.25, which is age-reduced by 40% (0.40) to 54,870.90. With a coverage level of 0.5x, the final coverage amount (not rounded) is 27,435.45.
    Spouse Amount per Multiple
    Child Amount per Multiple
    Only available to
    Multiples of Dependents
     coverage.
    The amount of coverage per multiple of spouse or child.
    Example: If you elect 3 multiples with the spouse amount being $5,000 and child amount being $2,500, you will receive $15,000 in the event of the death of your spouse and $7,500 in the event of the death of a child.
    Additional Coverage Amount
    Only available to
    Multiples of Salary Coverage
     and
    Percent of Salary Coverage
     types. Enter a flat amount to be added to the total calculated coverage.
    Multiplier Based Coverage Levels Name
    Only available to these insurance coverages:
    • Multiples of Dependent Coverage
    • Multiples of Salary Coverage
    Multipliers
    Only available to
    Multiples of Dependent Coverage
    .
    Compensation Multipliers
    Only available to
    Multiples of Salary Coverage
    .
  • Associate the coverage with specific benefit groups on an insurance plan with the
    Create Benefit Plan
     task.
  • View detailed information for a specific insurance coverage with the
    Insurance Coverage
     report.