Set up an Income Protection benefit

Income protection insurance is an insurance policy available in Australia, Ireland, New Zealand, South Africa, and the United Kingdom. This policy pays benefits to policyholders who are incapacitated and unable to work due to illness or accident. IPI policies were formally called Permanent Health Insurance.

To create an income protection benefit for an employee:

1. Sign in to Staffology HR.

2. Go to Directories.

3. Select the required employee and choose Edit.

   You can also select the edit icon displayed on the employee's name:

   

4. Select Benefits.

5. From the dropdown, choose Income Protection > Create New.

   

 

Fields for Income Protection

Provider	The name of the Income Protection provider.   If no options display in the dropdown, select Provider or go to System Tools > Lookup Tables > Benefits > Income Protection Provider to add your provider lookups.
Policy Number	Enter the policy number.
Date to	Enter the policy start date.
Date from	Enter the policy end date.
Provider Details	Enter additional information about the provider (e.g. address, primary contact etc).
Benefit Summary	Enter additional information about the policy you require. This can include dependants' info or endorsements to the policy.
Salary Benefit %	The percentage of salary benefit appears in the Summary section.
Salary %	Refer to Calculations for Income Protection below.
Unit Rate	Refer to Calculations for Income Protection below.
Divisor	Refer to Calculations for Income Protection below.
Extranet	Add the provider's website. This displays via the reward statement and the employee can use this link to obtain further information about the provider.
Exclude Reward Statement	Select this checkbox if you want to exclude this policy from the reward statement.
Paid through Payroll	Select this checkbox if you want this policy to be paid through payroll.
Actions
Activity*	You can create an activity relating to this record.
Linked Documents	If required, upload related documents for the employee to view.
Data Audit	Audit of any changes.
Mail Merge Field Selector	To create mail merge documents relating to this benefit.
Mail Merge	Merge the data from the record into the previously created mail merge document.
Reminder Alerts*	Frequency based reminders for this record.

Calculations for Income Protection

• You can use either Salary % or Unit Rate.

• Salary % formula: Salary * (Percentage/100).

• When using Unit Rate, you must also use the Divisor.

When calculating via the unit rate, income protection subtracts 4091.00 to handle Employment & Support Allowance (ESA) payments External website.

Formula for Income Protection

(((Salary – 4901) * Unit Rate) * Divisor) / 100.