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Administrator Guide
Last Updated: 2023-06-23
Create Additional Benefit Plans

Create Additional Benefit Plans

  • Set up benefits, defining these items for additional benefits:
    • Additional benefit coverage types.
    • Coverage targets or contributions for additional benefit plans.
  • Set up benefit credits.
  • Set up benefit surcharges.
  • Security:
    Set Up: Benefits
     in the Benefits functional area.
You can create an additional benefit plan for a benefit that doesn’t fit in the other coverage categories.
Examples:
  • Commuter plans.
  • Employee Stock Purchase Plans (ESPP).
  • Gym memberships.
  • Legal assistance.
  • Pet insurance.
You can also create a long-term care insurance additional benefit. With the individual rate feature, you can enter a rate at the employee level.
You can track enrollment and costs in these plans.
  1. Access the
    Create
     or
    Edit Benefit Plan
     task.
  2. From the
    Benefit Plan Type
     prompt, select
    Additional Benefits Plan
    .
  3. As you complete this task, consider:
    Option Description
    Do Not Use
    When selected, Workday appends the
    Do Not Use
     label to the benefit plan name and hides it from
    Benefit Plan
     configuration prompts, as of the effective date. This check box doesn't hide the benefit plan name from configuration prompts in these tasks and business process:
    • Create
       or
      Edit External Payroll Deduction
       tasks.
    • Create
       or
      Edit External Payroll Earning
       tasks.
    • Review COBRA Eligibility Event
       business process.
    External Plan Description
    Create an external URL that Workday displays on the enrollment form.
    Participating Benefit Groups
    Select the benefits groups that are eligible for this plan.
    The groups you select here determine the groups that are available in the
    Benefit Rates and Eligibility
     section.
    Worker Plan Eligibility
    If all workers in the participating benefit groups aren’t eligible for this plan, select an eligibility rule to limit coverage to a subset of workers.
    Example: You want to limit coverage within the Hourly Employees benefit group to workers in the state of California. To do so, select an eligibility rule that includes only California workers.
    Auto Enroll
    Select to enroll employees in an additional benefit plan automatically. On the enrollment page, Workday automatically selects
    Elect
    , and employees can only view it.
    To enroll employees in a benefit plan automatically, select this option and select the
    Only One Election
     option for the
    Maintain Benefit Coverage Types
     page.
    Use Individual Rates
    Select this check box to override the employee and employer costs using the
    Manage Individual Rates
     task. Not available for amount-based plans.
    Reset Individual Rates on Plan Year Begin
    Select this check box when a new plan year begins to revert the employee and employer costs to the values defined on the benefit plan. Otherwise, the costs stay as they were for the prior year.
    Whole Number Percentages Only?
    Select to ensure that employees use whole numbers on additional benefit plans that use percentages. When selected, Workday displays an error for Workday on the desktop when an employee attempts to enter something other than a whole number.
    Earnings and Deductions
    Applies to Workday Payroll users and integrations to third-party payroll providers.
    • Select:
      • Earning codes used to calculate employer costs that are taxable to the employee.
      • Deduction codes used to calculate employee pre/post-tax costs
      • Codes used to calculate employer costs that aren’t taxable to the employee.
    Currency
    Specifies the currency used to calculate the contribution amount for the benefit plan. Select the same currency used by the benefit groups that can enroll in the plan. Consider creating a separate benefit plan for each currency or country.
    You can only update this field if the
    Usage Count
     is zero.
  4. In the
    Expanded Plan Details
     section, add plan details for your employees so that they can see the specific features of the benefit plan. You can also add instructions and links to benefit plan information. Workday displays contribution information and the amount workers pay.
  5. In the
    Benefit Rates and Eligibility
     section, enter:
    Option Description
    Covers
    Displays only if you selected the
    Use Coverage Target
     check box on the
    Maintain Benefit Coverage Types
     page.
    Employee Cost (Pre-tax)
    Available if you selected a coverage type with
    Rates
     in the
    Plan Behavior
     field.
    Enter the pretax plan cost.
    Employee Cost (Post-tax)
    Available if you selected a coverage type with
    Rates
     in the
    Plan Behavior
     field.
    Enter the post-tax plan cost.
    Employee Amount Minimum
    Available if you selected a coverage type with
    Accepts Amount
     in the
    Plan Behavior
     field.
    Enter the minimum amount that an employee can contribute.
    Employee Amount Maximum
    Available if you selected a coverage type with
    Accepts Amount
     in the
    Plan Behavior
     field.
    Enter the maximum amount that an employee can contribute.
    Employee Percent Minimum
    Available if you selected a coverage type with
    Accepts Percent
     in the
    Plan Behavior
     field.
    Enter the minimum percentage that an employee can contribute.
    Employee Percent Maximum
    Available if you selected a coverage type with
    Accepts Percent
     in the
    Plan Behavior
     field.
    Enter the maximum percentage that an employee can contribute.
    Employer Cost (Non-taxable)
    Map nontaxable costs to a payroll deduction.
    Employer Cost (Taxable)
    Map taxable costs to a payroll earnings code.
Create or edit the benefit plan year definition and add this plan.