Steps: Set Up Eligible Earnings Overrides for Bonuses
Define
your bonus plans and related compensation structure.
Define eligible earnings when you want to use a specific value as an employee's
estimated earnings to calculate their percent of salary-based bonuses. Eligible earnings
overrides can only be used in compensation review processes that include bonus
awards.
- In theCreate Eligible Earnings Override Periodtask, define the eligible earnings period.Security:Set Up: Merit and Bonusdomain in the Advanced Compensation functional area.
- To use eligible earnings as the basis for calculating bonuses, selectEligible Earnings Overrideas the compensation basis.
- Define the eligible earnings for the employee, including the amount, the applicable period, and the applicable bonus plans.
- (Optional) Before running the compensation review process, view theEmployees without Eligible Earnings Overridereport.Ensure that you defined eligible earnings for all employees assigned to the bonus plan who should be receiving the bonus. To define eligible earnings, select from the worker's related action menu.
- To calculate bonuses based on the eligible earnings, run the process for the bonus plan and eligible earnings period.