Example: Deferred Bonus Progressive Calculation
For progressive calculations, Workday applies more than 1 range to the same bonus award if
there are marginal amounts.
Example: The deferred bonus calculation is:
Range Name | To Value | Deferred Percentage |
|---|---|---|
Tier 1 | 250,000 | Zero% |
Tier 2 | 500,000 | 10% |
Tier 3 | 900,000 | 20% |
Tier 4 | 1,500,000 | 30% |
Tier Max | 99,999,999 | 40% |
Kyle receives a 1,000,000 deferred bonus award. The deferred bonus calculation has the
The total amount deferred for Kyle's bonus award is 135,000.
Progressive Calculation
check box selected. The bonus
award of 1,000,000 exceeds the 250,000 upper limit of Tier 1, leaving a balance of
750,000. Workday compares that balance to the upper limit of the tier and multiplies
the smaller value by the deferral amount:
Tier | Remaining Bonus Amount | Difference from To Value | Smaller Value | Deferred % | Deferred Amount |
|---|---|---|---|---|---|
1 | 1,000,000 | 250,000 | 250,000 | Zero% | Zero |
2 | 750,000 | 250,000 | 250,000 | 10% | 25,000 |
3 | 500,000 | 400,000 | 400,000 | 20% | 80,000 |
4 | 100,000 | 600,000 | 100,000 | 30% | 30,000 |
Max | Zero | 1,000,000 | Zero | 40% | Zero |