Create a Short-Term Incentive Plan Rate Definition for a Salary Basis

Users enter the short-term incentive plan rate percentage value while allocating salary. It's stored in an element entry and the corresponding amount is calculated immediately. The plan rate contributes to the overall salary rate, also known as total target compensation.

Before you start

Create the US STIP payroll element using the Standard Earnings template, the Factor 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

Fastpath: My Client Groups > Compensation > Rates Definition

1. On the Rate Definitions page, click the Create icon.
2. On the Create Rate Definition dialog box, complete the required fields as shown here:

   Field	Value
   Category	Element
   Effective Start Date	1/1/00
   Legislative Data Group field	US LDG
   Storage Type	Factor You'll need to define the calculation rate contributor for this storage type.
   Element	US Short-Term Incentive Plan 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.

3. Click OK.
4. On the Create Rate Definition page, in the Returned Rate Details section, confirm that the Periodicity value is Annually.
5. In the Calculation Details section, click the Add icon.
6. On the Create Rate Contributor dialog box, select Base Rate.
7. On the Create Rate Contributor page, in the Periodicity field, select Annually.
8. Click Save and Continue.
9. Click the Override and Defaulting Rules tab.
10. Select the Override Allowed checkbox so that people allocating salary can enter an amount.
11. Click Submit.