Users enter the base salary rate value while allocating salary. The rate contributes
to the overall salary rate (also known as total target compensation) and is used to
calculate the short-term incentive plan amount.
Before you start
Create the payroll element, US Base Salary in this example,
using the Standard Earnings template, the Flat amount calculation rule, and an Annually
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
-
On the Rate Definitions page, click the Create
icon.
-
On the Create Rate Definition dialog box, complete the required 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 Base Salary
- 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.
|
-
Click OK.
-
On the Create Rate Definition page, in the Basic Details section, select the
Base Rate checkbox.
-
In the Returned Rate Details section, confirm that the Periodicity value is
Annually.
-
Click the Override and Defaulting Rules tab.
-
Select the Override Allowed checkbox so that people
allocating salary can enter an amount.
-
Click Submit.