Coverage Formulas Using Subtraction to Derive Calculated Base for Long Term Disability Premiums
(Doc ID 2550636.1)
Last updated on FEBRUARY 28, 2023
Applies to:PeopleSoft Enterprise HCM Human Resources - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
The Long Term Disability (LTD) Plan provides up to 70% benefit up to a maximum of $7500 per month. The employer pays for a 60% benefit and the employee then has the option of purchasing the additional benefit (up to 10% up to a total of $7,500). No Coverage Formula has been found that will produce the employee’s correct deduction for employees who are purchasing this coverage if the amount they are purchasing is less than the full 10% because of the $7500 limit.
1. Create a Coverage Formula for an LTD Plan for the employee deduction for the benefit buy-up (Navigation: Set Up HCM > Product Related > Base Benefits > Rates and Rules > Coverage Formula Table).
2. Run a payroll calculation to check the Calculated Base for the employee’s deduction (Navigation: Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck).
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