Create a Wage Basis Rule

Wage basis rules are predefined for all the delivered secondary classifications. You can't change the predefined rules; you can only create date-effective rules. When you create a new secondary classification, create the wage basis rules for the new classification.

Use the Component Group Rules task from the Payroll area to create a wage basis rule.

To create a wage basis rule:

1. From the Payroll area, select the Component Group Rules task.

2. On the Component Group Rules page, select a Canadian Legislative Data Group and click Search.

3. Select the Regional node, to define wage basis rules at the provincial level. For example, Workers Compensation rules for Ontario.

   The earnings considered to determine the amount used to calculate the Workers' Compensation liability amount is dependent on the rules defined for the province.

4. Under the Component Group Rules pane, navigate in the tree structure to Related Deductions > Workers Compensation > Wage Basis Rules.

5. Select Actions > Create. to open the Create Wage Basis Rule page.

6. Enter these details:

   Field	Requirement	Comments
   Effective Start Date	Required	It's recommended to use either the implementation date or the earliest date a pay period exists.
   Year End Forms	Optional	Select the year end form for reporting this deduction or earning.
   Province	Optional	Select the Province for which you're defining the wage basis rules, example, Ontario. Note: Although the UI doesn't denote this field as required, this information is necessary for creating the provincial tax rules.
   Primary Classification	Required	Select the Primary Classification. The Primary Classification for Workers' Compensation is Employer Liabilities.

7. Select Yes or No in the Select all secondary classifications option. Select Yes if all secondary classifications under the primary classification should be defined the same way. For the purpose of this example, select No.

8. Select a Secondary Classification.

9. Select either Yes or No, to determine if the selected secondary classification is subject to wage basis rule.

10. Click Submit.

To view the data you just created, search by the province on the Component Group Rules page. In the field directly above Province, enter the abbreviation of the province, for this example it's ON. This filters the data in the UI for Ontario. If a blank field isn't available for entry above Province, select the filter icon (Query by Example).

These rules that you have created are linked to a Legislative Data Group. They can't be overwritten by the rules predefined by Oracle Fusion Human Capital Management for Canada.