Rate Contributors for Derived Rates

You can add four different types of rate contributors to your rate definitions. These rate contributes include, Balance, Base Rate, Overall Salary, and Rate Definitions.

You can add rate contributors when you define a rate using the Derived Rate category. You can also manually add rate contributors for the Element category when the storage type is Factor.

For example, if you define a bonus rate which is 0.1 (10 percent) of average earnings, then you do these steps.

• Enter 0.1 as the factor on the element.

• Define a rate contributor based on your average earnings balance.

Rate Contributor Types

This table lists the types of rate contributors, descriptions, and the additional fields that display for each type.

Type	What it Contains	Additional Fields
Balance	Value calculated by these payroll processes. An employee's average salary rate over their last three months of salary payments Taxable earnings for the last tax year Commissions paid in the last quarter	Balance Name Balance Dimension Divisional Balance
Base Rate	Value from the employee's Base Rate	Employment Level
Overall Salary	Value from the employee's Overall Salary rate Note: Each overall salary element must be associated with only one overall salary rate. In addition, if the rate definition is an overall salary rate, you can't select Overall Salary as the Contributor Type.	Employment Level
Rate Definition	Other rate definitions that contribute to the rate definition you're creating. For example you can add regular salary, car allowance, and bonus pay rate contributors together to create an overall salary definition.	Rate Name

Reference Dates

You can select a reference date, which is the date the application uses to retrieve rate contributor information for the rate calculation. The reference date specifies the context for the balance dimension.

For example, to retrieve a rate as of the actual start of an absence, select Absence Start Date. To retrieve a rate as of a specific time period, select a specific time period.

The Reference Date field lists only these types of time definitions:

• Time Span - a period of time, such as three months

• Retrieval Date - a type of time definition that's based on a database item

Selecting a value for the Reference Date field is optional.

Note: If you don't select a reference date, the application uses the effective as-of date that's used by the rate engine to calculate the rate.

Single or Multiple Rate Contributors

If the rate definition is based on multiple values, you may need to create multiple rate contributors, as explained in this table.

Rate	Number of Rate Contributors
A single earning or deduction, such as salary	One
A combination of earnings, such as the sum of salary and car allowance payments	Multiple, if salary and car allowance are stored as separate rate definitions

Note: All balances and element entries that contribute to a rate must use the same currency.

Example: Using multiple rate contributors, an hourly holiday pay rate could be based on adding together these values, which are all paid at the end of the previous year.

• Salary

• Incentive bonus

• Seniority bonus

• Other changeable components of remuneration