Create an Overall Salary Rate Definition for a Salary Basis

The overall salary rate definition is derived from other rate definitions. In this example, the overall salary is derived from the base salary, allowance, short-term incentive, and performance award rate definitions.

Before you start

Create the payroll element, US Overall Salary in this example, using the Standard Earnings template, the Flat amount calculation rule, and an Annually periodicity. On the Element Summary: US Overall Salary page, in the Standard Rates section, make sure that the Process in payroll run option isn't selected. Or, you can make sure that Process in payroll run isn't selected for the elements of any rate contributors, and is selected for the overall salary element. We also 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.

Next, create these rate definitions:

• Base salary
• Allowance
• Short-term incentive
• Performance award

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 required fields, as shown by these example values:

   Field	Value
   Category	Derived Rate
   Effective Start Date	1/1/00
   Legislative Data Group field	US LDG

4. Click OK.
5. On the Create Rate Definition page, complete the basic fields, as shown by these example values:

   Field	Value
   Name	Overall Salary
   Short Name	OVERALL SALARY
   Element Name	US Overall Salary You need to associate a payroll element with this rate to store the amount in an element entry.
   Overall Salary	Select This amount appears on pages and in work flows containing salary information, and it's used to calculate salary metrics, such as compa-ratio.
   Reporting Required	Select

6. In the Rate Contributors section, added the base salary rate definition.
   1. On the toolbar, click the Create icon.
   2. On the Create Rate Contributor dialog box, in the Contributor Type field, select Base Rate.
   3. On the Create Rate Contributor page, in the Employment Level field, select Payroll Assignment.
   4. Click Save and Continue.
7. In the Rate Contributors section, add the allowance, short-term incentive, and performance award rate definitions.
   1. On the toolbar, click the Create icon.
   2. On the Create Rate Contributor dialog box, in the Contributor Type field, select Rate Definition.
   3. On the Create Rate Contributor page, in the Rate Name field, select the appropriate rate definition.
   4. Confirm that the periodicity is correct.
   5. Click Save and Continue.
   6. Repeat these steps until you've added all the rate definitions contributing to the overall salary.