Considerations When Using Rates-Based Salary

Consider dates used in salary calculations, inserting retroactive salaries, handling employment terminations, and changing the salary basis type. Also consider salary copy during mass change of legal employer and what corrections and updates you can make using HCM Data Loader.

Consideration	Comments
Date used in salary calculations for offer and pending worker flows	The calculations use the assignment effective start date, which changes depending on if the proposed start date is in the future or the past. Future: The assignment effective start date is the same as the offer creation date. Past: The assignment effective start date is the same as the proposed start date.
Inserting retroactive salary	Use the Change Salary task in the compensation app to insert the retroactive rates-based salary between existing rates-based salary. You can’t use HCM Data Loader.
Handling employment termination	Terminating a worker’s employment end dates the corresponding element entries based on their termination rule. Their salary doesn’t get end dated, but rate values no longer get calculated. So, you need to manually end date the salary.
Changing to another salary basis type	Delete all the rates-based salaries for the assignment. Then you can create another salary for the worker that’s user determined, uses incremental components, or uses standard components. Caution: These kinds of deletions can create cascading effects on payroll or other downstream processing, so be careful making these kinds of changes. It’s a best practice to use rates-based salary for all employees in the legislative data group or legal employer. This way migrating from rates-based salary to another type is no longer necessary.
Copying salary during mass change legal employer	Rates-based salary can include element rates, which the salary process can copy to the destination employer. The payroll process also copies element entries. This dual copy can lead to errors when creating the destination salary. To prevent errors, you can define an element group to exclude rate elements when submitting the mass change process. This ensures that the salary copy process copies the element entries, but not the payroll process.
Salary corrections and updates using HCM Data Loader	After a worker has a rates-based salary basis, you can’t correct their salary with another salary basis. You need to delete the rates-based salary and create another salary using the new salary basis. Note: You can delete only the most recent salary. When you update salary with another rates-based salary basis, the element entries belonging to the primary rates of the old salary basis aren’t end dated. You need to use HCM Data Loader and the Element Entry object to update the end date of the affected element entries.