This chapter provides an overview of Administer Compensation, and discusses how to:
Set up rate codes.
Define groups of rate codes.
In the following overview, the second step—defining rate codes—is required. The other remaining steps are optional, but they provide invaluable functionality for rate code use.
To administer compensation:
Define rate code classes on the Rate Code Classes page.
Define rate codes on the Comp Rate Code Table page.
Define rate code groups on the Rate Code Groups page and enable the use of rate code groups in the system.
Associate rate codes with salary steps on the Salary Step Components page of the Salary Grade component.
Define special rate code defaulting rules using the Rate Code Defaulting Rules component.
Associate rate codes with job codes, positions, and worker job records.
Compensate workers by using salary points:
Select the Salary Points check box on the Options page of the Installation component.
Set up the Salary Points monetary value on the Default Settings page of the Company component.
Associate the point value (an integer) with rate codes on:
– The Salary Step Components page of the Salary Grade component.
– The Default Compensation page and the Non-Base Compensation page of the Job Code component.
– The Compensation page of the Job Data component.
See Also
Setting Up Base Compensation and Budgeting
To set up rate codes, use the Rate Code Class Table (RATECD_CLASS_TBL) and Comp Rate Code Table (COMP_RATECD_TBL) components. Use the CI_COMP_RATECD_TBL component interface to load the data into the tables for this component interface.
This section provides an overview of creating seniority rate codes, lists the pages used to set up rate codes, and discusses how to:
Create rate code classes.
Define rate codes.
Associate seniority rate codes with compensation increases.
View defaulting rules associated with compensation rate codes.
Note. If you are assigning rate code classes to rate codes, you must define rate code classes before creating rate codes.
Page Name |
Definition Name |
Navigation |
Usage |
RATECD_CLASS_TBL |
Set Up HRMS, Foundation Tables, Compensation Rules, Rate Code Class Table |
Create rate code classes. |
|
COMP_RATECD_TBL |
Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Comp Rate Code Table |
Define rate codes. |
|
SENIORITY_PAY |
Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Seniority Pay |
Associate a seniority rate code with:
|
|
COMP_RATECD_RULES |
Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Combination Rules |
View defaulting rules associated with a compensation rate code. |
Access the Rate Code Class Table page (Set Up HRMS, Foundation Tables, Compensation Rules, Rate Code Class Table).
You can associate individual rate codes with rate code classes. These classes are used as search criteria on rate code search pages throughout the system. After you create rate code classes on this page, you assign them to rate codes on the Comp Rate Code Table page.
The predefined rate class SENPAY enables you to bundle rate codes used to administer seniority pay to workers.
Access the Comp Rate Code Table page (Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Comp Rate Code Table).
Use Highest Rate |
Select to use the highest rate of pay for this rate code. Use this option when a worker is temporarily placed in another job that is paid at a higher rate. This field does not affect human resources processing. For Payroll for North America: When you assign rate code at the job level, you can enter a compensation rate that differs from the rate defined on the rate code table. If you deselect this check box, the rate that you specify at the job level overrides this rate. |
Apply FTE (apply full-time equivalency) |
Select for the rate code to be calculated as part of FTE. FTE is the percentage of full time that a worker normally works in the corresponding job. Full time is defined in the Standard Hours and Standard Work Period fields on the Salary Plan table. Alternatively, it can be defined in the default Standard Hours and Standard Work Period fields on the Installation table. For Payroll for North America: Select to include full time equivalency in the job in the calculation of a base pay rate. You can select this check box only when the rate code type is Flat Amount or Hourly Rate. This check box does not apply to non-base-pay rates; it is unavailable for entry if you deselect the Base Pay check box. |
Default Without Override |
Select to ensure that compensation rate of the workers assigned to this rate code cannot be manually updated on the Compensation page of the Job Data component. You must select this check box for seniority rate codes. Note. We do not recommend deselecting this check box for a rate code used as an absorbable premium on the Salary Plan table after the rate code has been added to worker compensation packages. |
Rate Code Type |
Select a compensation rate type. Depending on the type you select, certain fields become available for entry. Values are:
Note. To use points, select the Salary Points check box on the Installation Table - HRMS Options page. |
Rate Code Class |
Select a rate code class to associate with the rate code. Values include:
Note. If you have created additional rate code classes, you can select one of the delivered values described previously or one of the values you created. |
Calculated By |
Select a value to determine how the rate for this rate code will be derived. Values are:
Note. You can switch between None and Rate Matrix without having to create a new effective-dated row. |
Rate Matrix |
Select the specific rate matrix to be used. This field becomes available when the Rate Matrix value is selected in the Calculated By field. Important! You can only select a rate matrix whose output is compatible with the definition of the rate code. For example, if the rate code has a rate code type of Flat, (which implies a dollar amount), then the rate matrix must have an output of type amount, it cannot have an output that is a percentage, or a string of characters. |
Comp Percent (compensation percentage) |
Enter the percentage that will be applied to all base pay components, or a rate code group when new compensation rates for a worker are being derived. |
Compensation Rate |
Enter the standard compensation rate for this rate code. . This field is available when you select the value of None in the Calculated By field. |
Currency |
Enter the currency for each value pertaining to the Calculated By field. . |
Frequency |
Select a compensation frequency. You cannot select Hourly if the rate code type is Flat Amount. You must select Hourly if the rate code type is Hourly or Flat Amount & Hourly. |
Earnings Code |
If you use PeopleSoft Enterprise Payroll for North America and enter an earnings code here for a nonbase pay rate code, the system automatically enters the earnings code when you select the comp rate code on the paysheet. |
When implementing PeopleSoft Enterprise Salary Packaging for Australia, use this page to define and review the compensation rate codes you will use to package your workers. Compensation rate codes represent the IDs that you use for your pay components throughout your Salary Packaging system.
When defining your salary package components and additional components, you can link them to compensation rate codes to help you enter expenditures for the appropriate components. If you link compensation rate codes to salary package components, you must have a unique rate code for each package component or additional component (identified as an expense payroll type). This enables you to reconcile the package expenditure.
Maintained via Package Only |
Select to create a link between a salary package component and the compensation rate code. If you select this check box, a warning message appears if you manually change a worker's compensation rate code. This check box, combined with other information on the worker's Job record, is used to maintain salary package integrity. |
Using Rate Codes – Example
If a worker is assigned a rate code that is matrix-based, there will only be an initial evaluation of the rate matrix to determine the compensation rate for that rate code. This is consistent with current rules for rate code management. Over time, worker information may change that could warrant the assignment of a different rate from the matrix. However, the system will not do this automatically. The only way to get rates reevaluated automatically is by running one of the existing batch processes (CMPnnn). In general most of the these batch processes replicate the processing done by the Default Pay Components and the Calculate Compensation buttons on Job compensation page. If someone manually added a Rate Matrix based rate code, and the "Default Without Override" option is not selected, that rate code will never get refreshed by any process or by pushing the button. If an update is needed, it must be done manually.
See Also
Understanding Administer Salary Packaging
To administer seniority pay, you must create seniority rate codes.
To create a seniority rate code:
Associate a rate code with the predefined seniority rate code class SENPAY.
Associate the rate code with levels of seniority compensation increase.
(Optional) Associate the rate code with one or more groups that you define using Group Build.
Important! You cannot associate configurable rate matrices to seniority rate codes.
Access the Comp Rate Code Table - Seniority Pay page (Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Seniority Pay).
Calculate Seniority By |
Select the type of date on which to base seniority. Values are:
|
Educ Lvl-Adjsted Birth Date (education level-adjusted birth date) |
Select to calculate education level age-related pay, a type of seniority pay commonly paid by Japanese organizations. |
Seniority Pay Group
Group ID |
Enter one or more group IDs to associate the seniority rate code with groups that you define using the Group Build business process. The system issues a warning if the ID that you enter is associated with another seniority rate code. When you move out of this field, the name of the group ID appears. Note. If you do not enter a group ID, the system associates the seniority rate code with every worker's compensation package. |
Seniority Pay Compensation
Level |
Enter a seniority level |
Min. Years (minimum years) and Min. Months (minimum months) |
Enter the minimum years and months of service that are necessary to qualify for the seniority level. If you enter both Min. Years and Min. Months, the system uses the total of those years and months in its calculation. |
Comp Rate (compensation rate) |
This option appears if you select Flat Amount, Hourly Rate, or Hourly Rate + Flat Amount as the rate code type. Enter a compensation rate to associate with this seniority level. |
Comp Percent (compensation percent) |
This option appears if you select Percent as the rate code type. Enter the compensation percentage to associate with this seniority level. |
Points |
This option appears if you select Points as the rate code type. Enter the salary points to associate with this seniority level. |
Access the Comp Rate Code Table - Combination Rules page (Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Combination Rules).
This page displays the combination defaulting rules that use this rate code.
Edit Defaulting Rules |
Click to access the Rate Code Defaulting Rules - Rate Codes page, where you edit the information for the defaulting rules. |
Values tab
Access the Values tab.
This page displays the compensation rate, currency and frequency as defined on the defaulting rule.
Note. This page only displays combination defaulting rules, not salary step and job code defaulting rules.
To set up rate code groups, use the Rate Code Groups (RATE_CODE_GROUPS) component.
This section provides overviews of rate code groups and discusses how to create groups of rate codes.
After you have defined rate codes, you can optionally set up rate code groups. Using rate code groups, you can:
Be specific when calculating percentage-based pay components as part of your worker compensation packages.
For example, a worker's base compensation package may be made up of the following components: base pay, cost of living, child-care cost, and commuting cost.
Calculate a bonus amount based only on certain parts of a worker's compensation package, as opposed to the entire package.
You may want to do this if a percentage-based bonus is part of a worker's compensation.
Bundle base-pay components that you want the system to use in its calculation, excluding other pay components.
Note. Before you can use groups of rate codes, you must select the Use Rate Code Groups check box on the HRMS Options page of the Installation component.
You can associate a rate code group with a percentage rate code. If you do this, the system applies that percentage to all the rates in the rate code group; it adds the total to a worker's compensation package. If you decide not to use rate code groups, you can calculate percentage rates using a worker's entire base-pay compensation package.
When you implement a pay increase for a worker, you can specify that the worker is to receive a percentage increase of base pay, as defined in the rate code group. When the system calculates the value of the increase, its calculation is based on the different pay rates that are associated with the base-pay rate group.
You can associate a rate code group with a percentage rate code:
In a salary step on the Salary Step Components page of the Salary Grade component.
With a job code on the Default Compensation and Non-Base Compensation pages of the Job Code component.
At the worker level on the Job Data - Compensation page.
Page Name |
Definition Name |
Navigation |
Usage |
COMPRT_GRP_PNL |
Set Up HRMS, Foundation Tables, Compensation Rules, Rate Code Groups |
Create groups of rate codes. |