1. Implementing Payroll for Canada
  2. Examples of Managing Values Defined by Criteria

Examples of Managing Values Defined by Criteria

Use the Values Defined by Criteria task to calculate or retrieve values based on one or more conditions. You can use values defined by criteria in rate definitions. You can also use value by criteria definitions in any formula used for validation.

If you use a third-party payroll product and have a requirement to extract the salary rate details, use the Generate HCM Rates process to calculate rate values. The Generate HCM Rates process is primarily used to calculate derived rate values, such as those which sum multiple salary components. However, it's also used to process primary rates, as you may define rate definitions which calculate values that are different from those stored on an element entry.

Note: The values calculated by the Generate HCM Rates process are stored on a rates table. You can extract this information using the HCM Extract tool to send to your third-party payroll providers.

Use these examples to understand how you can calculate values defined by criteria for these elements of payroll.

Annual Salaries

You can calculate annual salaries for employees based on their position. For example:

  • If the employee is a Consultant, pay 45,000

  • If the employee is a Senior Consultant, pay 55,000

  • If the employee is a Principal Consultant, pay 65,000

Bonus Payments

You can chose to calculate bonus payments for employees that are weighted by their province. A more complicated scenario would be to pay bonuses based on an employee's department, years of service, and annual salary.

  • To weight a bonus payment by province, you could set up criteria like this:

    • For employees working in Ontario, pay a 15 percent bonus

    • For employees working in Quebec, pay a 13 percent bonus

    • For employees working in Nunavut, pay a 9 percent bonus

    • For all other employees, pay a 5 percent bonus

  • To pay a bonus based on department, years of service, and annual salary, you could set up criteria like this:

    • If an employee working in sales has less than or equal to 5 years of service and an annual salary over 45,000, pay a 2,000 bonus

    • If an employee working in sales has less than or equal to 10 years of service and an annual salary over 45,000, pay a 5,000 bonus

    • If an employee working in sales has greater than 10 years of service and an annual salary over 45,000, pay a 9,000 bonus

    • For all other employees working in sales, pay a 7 percent bonus based on their annual salary

Pension Contributions

Your pension plan may have rules that limit contributions based on an employee's annual salary. For example, in this scenario you could set up the following criteria:

  • Employees making less than or equal to 25,000, limit maximum contributions to 2,500

  • Employees making less than or equal to 50,000, limit maximum contributions to 7,500

  • Employees making less than or equal to 100,000, limit maximum contributions to 12,500

  • Employees making greater than 100,000, limit maximum contributions to 14 percent of pay