Users enter the short-term incentive plan rate percentage value while allocating
salary. It's stored in an element entry and the corresponding amount is calculated
immediately. The plan rate contributes to the overall salary rate, also known as total
target compensation.
Before you start
Create the US STIP payroll element using the Standard
Earnings template, the Factor calculation rule, and an Annually periodicity. We
recommend that you configure the element eligibility as open. For more details about
creating compensation payroll elements, see Create a Payroll Element to Use with Salary Bases.
Here's what to do
-
On the page, click the Rates Definition
task.
-
On the Rate Definitions page, click the Create
icon.
-
On the Create Rate Definition dialog box, complete the required fields as shown
here:
Field |
Value |
Category |
Element |
Effective Start Date |
1/1/00 |
Legislative Data Group field |
US LDG |
Storage Type |
Factor
You'll need to define the calculation rate contributor
for this storage type.
|
Element |
US Short-Term Incentive Plan
- Link a payroll element to only one rate. Linking the
element to multiple rates can cause issues, such as
when a worker moves to another salary basis.
- The element name becomes the default rate definition
name and short name, which you can overwrite as
appropriate.
|
-
Click OK.
-
On the Create Rate Definition page, in the Returned Rate Details section,
confirm that the Periodicity value is Annually.
-
In the Calculation Details section, click the Add
icon.
-
On the Create Rate Contributor dialog box, select Base
Rate.
-
On the Create Rate Contributor page, in the Periodicity field, select
Annually.
-
Click Save and Continue.
-
Click the Override and Defaulting Rules tab.
-
Select the Override Allowed check box so that people
allocating salary can enter an amount.
-
Click Submit.