Create an Allowance Rate Definition for a Salary Basis

Users enter the allowance rate value while allocating salary. The rate contributes to the overall salary rate (also know as total target compensation).

Before you start

Create the payroll element, US Allowance in this example, using the Standard Earnings template, the Flat amount calculation rule, and a Calendar Month 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

1. On the My Client Groups > Compensation page, click the Rates Definition task.
2. On the Rate Definitions page, click the Create icon.
3. On the Create Rate Definition dialog box, complete the fields, as shown by these example values:

   Field	Value
   Category	Element
   Effective Start Date	1/1/00
   Legislative Data Group field	US LDG
   Storage Type	Amount The calculation rate contributor is automatically defined for this storage type.
   Element	US Allowance 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.

4. Click OK.
5. On the Create Rate Definition page, in the Returned Rate Details section, confirm that the Periodicity value is Calendar Month.
6. Click the Override and Defaulting Rules tab.
7. Select the Override Allowed check box so that people allocating salary can enter an amount.
8. Click Submit.