Calculate Housing Allowance

Let's look at an example to calculate a housing allowance rate that's limited to maximum of 1,000 per year.

In this example, housing allowance is a percentage of the salary. The percentage value is derived based on the job of the employee.

You can choose to calculate housing allowance rates with a job criteria with a maximum rate limit. Use the Values Defined by Criteria task to define the conditions and housing allowance values. Use the Rate Definitions task to associate the values defined by criteria to the housing allowance rate and apply the maximum limit rule.

In this example, you calculate housing allowance payments based on the type of the job. Create values by criteria for housing allowance, and then define criteria for each type of job.

You can also calculate the housing allowance payments based on a percentage of salary. You can do so by first entering values for each of the job criteria conditions. For example, if the job 'Help desk Manager' is eligible for 10% of the salary, enter a rate value of 0.10. Specify the value for the default criteria as 0.00. This ensures that you don't pay the allowance to employees who don't meet the job criteria.

Create the Housing Allowance Values by Criteria

1. On the Home page, click the Values Defined by Criteria quick action under the My Client Groups tab.

2. Click Create.

3. Complete these fields:

   Field	Value
   Name	Housing Allowance Rate
   Effective Start Date	Enter a valid date
   Legislative Data Group	Select your legislative data group

4. Select the Create new value definition group option.

5. Enter Housing Allowance in the New Value Definition Group field.

6. Enter Flat Rate in the Default Calculation Type field.

7. Click OK.

Create Criteria for Each Job Type

1. Select the row with the Housing Allowance Rate criteria definition.

2. Click New.

3. Select Criteria and then click OK.

4. For each criteria definition you create, complete these fields:

   Field	Value
   Calculation Value Definition Name	Job
   Value Definition Group	Housing Allowance
   Retrieval Date	Enter a valid date.
   Sequence	Select a sequence.
   Database Item Name	Select a database item name.
   Operand	=
   Literal Value	Help Desk Manager

5. Click OK each time you create a new criteria definition.

6. To create a default group for the job criteria, repeat steps 1 to 3.

7. Complete these fields:

   Field	Value
   Calculation Value Definition Name	Housing Allowance Default Rate
   Value Definition Group	Housing Allowance
   Retrieval Date	Date Earned

8. Select the Default Criteria check box and then click OK.

Create Value Definitions for Each Job Type

1. Select the row with the Job = Help Desk Manager criteria definition.

2. Click New.

3. Select Value and then click OK.

4. Complete these fields:

   Field	Value
   Calculation Value Definition Name	Help Desk Manager Rate
   Value Definition Group	Housing Allowance
   Retrieval Date	Date Earned
   Calculation Type	Flat Rate
   Rate	0.10

5. Click OK.

Create Value Definitions for the Default Criteria Definitions

1. Under the job criteria definition, select the row with the Default Criteria definition.

2. Click New.

3. Select Value and then click OK.

4. Complete these fields:

   Field	Value
   Calculation Value Definition Name	Housing Allowance Default Rate
   Value Definition Group	Housing Allowance
   Retrieval Date	Date Earned
   Calculation Type	Flat Rate
   Rate	0.0

5. Click OK.

Create the Rate Definition for Housing Allowance

1. On the Home page, click the Rate Definitions quick action under the My Client Groups tab.

2. In the Search Results section, click Create.

3. Complete these fields.

   Field	Value
   Category	Derived Rate
   Effective Start Date	Select a date that's after the creation date of the objects that you're referencing
   Legislative Data Group	Select your legislative data group

4. Click OK.

5. In the Basic Details section on the Create Rate Definition page, complete these fields:

   Field	Value
   Name	Enter the name for your rate definition. For example, Rate - Housing Allowance.
   Short Name	Enter a short name.

6. In the Returned Rate Details section, complete these fields:

   Field	Value
   Factor Rule	Value by Criteria
   Name	Select the value for the housing allowance that you created using values defined by criteria. For example, Housing Allowance Rate.
   Maximum Rate Rule	Value
   Maximum Value	1,000

Create Rate Contributors

1. In the Rate Contributors section, click Create.

2. Select Rate Definition as the Contributor Type and then click OK.

3. On the Create Rate Contributors page, complete these fields:

   Field	Value
   Add or Subtract	Add
   Rate Name	Select your salary rate definition.

4. Click Save and Continue.

5. Click Submit.