1. Implementing Compensation
  2. Create an Overall Salary Rate Definition for a Salary Basis

Create an Overall Salary Rate Definition for a Salary Basis

The overall salary rate definition is derived from other rate definitions. In this example, the overall salary is derived from the base salary, allowance, short-term incentive, and performance award rate definitions.

  1. Create the payroll element, US Overall Salary in this example, using the Standard Earnings template, the Flat amount calculation rule, and an Annually periodicity.

    On the Element Summary: US Overall Salary page, in the Standard Rates section, make sure that the Process in payroll run option isn't selected. Or, you can make sure that Process in payroll run isn't selected for the elements of any rate contributors, and is selected for the overall salary element. We also recommend that you configure the element eligibility as open.

  2. Create these rate definitions:
  3. Go to My Client Groups > Compensation > Rates Definition.
  4. On the Rate Definitions page, click the Create icon.
  5. On the Create Rate Definition dialog box, complete the required fields, as shown by these example values:
    Field Value
    Category Derived Rate
    Effective Start Date 1/1/00
    Legislative Data Group field US LDG
  6. Click OK.
  7. On the Create Rate Definition page, complete the basic fields, as shown by these example values:
    Field Value
    Name Overall Salary
    Short Name OVERALL SALARY
    Element Name

    US Overall Salary

    You need to associate a payroll element with this rate to store the amount in an element entry.
    Overall Salary

    Select

    This amount appears on pages and in work flows containing salary information, and it's used to calculate salary metrics, such as compa-ratio.
    Reporting Required Select
  8. In the Rate Contributors section, added the base salary rate definition.
    1. On the toolbar, click the Create icon.
    2. On the Create Rate Contributor dialog box, in the Contributor Type field, select Base Rate.
    3. On the Create Rate Contributor page, in the Employment Level field, select Payroll Assignment.
    4. Click Save and Continue.
  9. In the Rate Contributors section, add the allowance, short-term incentive, and performance award rate definitions.
    1. On the toolbar, click the Create icon.
    2. On the Create Rate Contributor dialog box, in the Contributor Type field, select Rate Definition.
    3. On the Create Rate Contributor page, in the Rate Name field, select the appropriate rate definition.
    4. Confirm that the periodicity is correct.
    5. Click Save and Continue.
    6. Repeat these steps until you've added all the rate definitions contributing to the overall salary.