The LPile Plus Technical manual lists 2 possible methods for doing this. However, it's not terribly clear where the cutoff between surface heave (wedge analogy) and deeper soil resistance is, based on the discussion in the LPile documentation.
Unless the calculated displacements are large, or the embedment of the pile is relatively shallow, I would think that it probably doesn't make a great deal of difference which approach is used.
Note that there is a missing figure in the LPile Tech. manual that may help to explain where the cutoff is for cohesive soils.
Certainly, I would hope that the software would account for the relative pile geometry and at least output a warning if the results were suspect in some way. I will have to follow up with Ensoft on that one.
Regards,
Jeff