The First Allocation and Next-Year Changes with Simple Components
Here’s an example where you enter the salary information for a new hire and then change their salary a year later. This salary information includes a salary basis with required simple components.
New Hire Action
While working through the New Hire action, in the Salary section, you select the Salary Required Components salary basis, which includes required simple components. In the table that appears, you see all the required components and any default values. You also see that you can enter a basic salary amount and adjust the default housing allowance percentage. The travel and city allowance value are fixed, so you can’t remove or edit them.
The name of the other component appears below the percentage component name. For example, Housing allowance is calculated as 50% of Basic salary component value. So below Housing allowance you Basic salary as a tip that housing allowance is based on it.
| Component Name | Percentage | Amount | Annual Amount | Annualized Full-Time Amount |
|---|---|---|---|---|
| Basic salary | NA | 0 | 0 | 0 |
|
Housing allowance (Basic salary) |
50 | 0 | 0 | 0 |
| Travel allowance | NA | 19,600 | 19,600 | 19,600 |
|
City allowance (Basic salary) |
10 | 0 | 0 | 0 |
| Overall salary | NA | 19,600 | 19,600 | 19,600 |
When you enter the basic salary amount of 50,000, the salary calculations automatically decide the other component values.
| Component Name | Percentage | Amount | Annual Amount | Annualized Full-Time Amount |
|---|---|---|---|---|
| Basic salary | NA | 50,000 | 50,000 | 50,000 |
|
Housing allowance (Basic salary) |
50 | 25,000 | 25,000 | 25,000 |
| Travel allowance | NA | 19,600 | 19,600 | 19,600 |
|
City allowance (Basic salary) |
10 | 5,000 | 5,000 | 5,000 |
| Overall salary | NA | 99,600 | 99,600 | 99,600 |
Change Salary Action
It's a year later and you want to change the person's salary. The Change Salary page shows the current salary details. In the prior amount column, you see the current component amounts adjusted for frequency and FTE, if any.
| Component Name | Prior Amount | Adjustment Amount | Adjustment Percentage | Percentage | Amount | Annual Amount |
|---|---|---|---|---|---|---|
| Basic salary | 50,000 | 0 | 0 | NA | 50,000 | 50,000 |
|
Housing allowance (Basic salary) |
25,000 | 0 | 0 | 0 | 25,000 | 25,000 |
| Travel allowance | 19,600 | 0 | 0 | NA | 19,600 | 19,600 |
|
City allowance (Basic salary) |
5,000 | 0 | 0 | 10 | 5,000 | 5,000 |
| Overall salary | 99,600 | 0 | 0 | NA | 99,600 | 99,600 |
You can use either the adjustment amount or adjustment percentage to calculate the new component amount. Or you can directly enter the new component amount. Whichever way you make your changes, as you enter the values, other values for that component get recalculated. And the other effected components with a higher process order also get recalculated.
| Component Name | Prior Amount | Adjustment Amount | Adjustment Percentage | Percentage | Amount | Annual Amount |
|---|---|---|---|---|---|---|
| Basic salary | 50,000 | 5,000 | 10 | NA | 55,000 | 55,000 |
|
Housing allowance (Basic salary) |
25,000 | 5,250 | 21 | 55 | 30,250 | 20,250 |
| Travel allowance | 19,600 | 400 | 2.04 | NA | 20,000 | 20,000 |
|
City allowance (Basic salary) |
5,000 | 500 | 10 | 10 | 5,500 | 5,500 |
| Overall salary | 99,600 | 11,150 | 11.19 | NA | 110,750 | 110,750 |