How do you calculate coverage when annual salary is a salary component but not overall salary?
Our Life insurance is calculated as 2X annual salary up to $500K. When I use the coverage calculation of:
Determination Rule: Multiple of Compensation
Multiplier: 2
Compensation Factor: Annual Salary
Operator: Multiply By
High Limit Value: 500,000
This works for majority of our employees but I have some sales commissioned employees that use simple salary components and their overall earnings (amount that gets pulled into this annual salary amount) is not their salary that needs to be used. That salary includes anticipated commissions but the life insurance should just be on the basic salary component (a component that adds up to the overall salary). We have our components setup this way since our salary ranges are based on the target earnings with anticipated commissions.