1. Using Common Features for HCM
  2. Car Allowance Plan Configuration

Car Allowance Plan Configuration

Here's how you create an ongoing car allowance plan with two payment options. The options vary according to the distance of regional territories from headquarters. Use the Elements and Individual Compensation Plans tasks on the My Client Groups > Compensation page.

  1. Create two payroll elements to make recurring payments once a month. For territories within a 100-mile radius of headquarters, set the input value default to 300. For territories beyond a 100-mile radius, set the input value default to 500.

  2. Create the plan.

    1. Configure an option for each payroll element.
    2. Let managers enter payment start and end dates according to agreements with their people. For example, a manager starts payment on the first of the month or the first payroll period after a promotion. They end payment after 1 year.
    3. Attach an eligibility profile that limits plan eligibility to people with the Regional Sales Manager job.
    4. Restrict access to specific HR actions, such as Hire and Transfer. Also add the Manage Individual Compensation action so that managers can award or update the car allowance for their people using that action.
    5. Optionally, add instructions that tell managers how the payment policy varies according to the distance from headquarters. And, include a link to the policy.