Example: Create a Step-Based Calculation for Bonuses Based on Cost of Living

This provides an example of 1 way to create a step-based calculation.

Your company has workers in California, Florida, New York, Pennsylvania, and South Carolina. You want to create a step-based calculation to give hourly workers bonuses based on the cost of living in their state. The amount of the bonus for these workers is a percentage of their wages for the pay period and is based on the cost of living in their state.

Remote workers who live in other states receive a 10% bonus.

Workers with wages greater than 1000 receive 100 plus the percentage based on the cost of living.

You want to round bonuses to 0.05.

Create an advanced lookup table for the cost of living, named Bonus Percent (based on Cost of Living). Base the table on report field search criteria, and use the worker's primary work state as the search criteria.

Create a step-based condition, named Worker is Not Hourly, that identifies nonhourly workers.

Create a step-based condition, named Hourly Wages > 1000, that identifies where a worker's hourly wages are greater than 1000.

Create a calculation called Hourly Wages
that returns a worker's hourly wages.

Security:

Set Up: Calculations - Generic
domain in the Core Payroll functional area.

Set Up: Time Off (Calculations - Generic)
domain in the Time Off and Leave functional area.

Access the

Create Step Based Calculation

task and enter these values:

Option	Description
Name	Graduated Bonus Calculation
Category	Payroll

Add these steps to the

Step Details

grid:

Use the plus in the far left column to add each row as a new step, as opposed to adding a row to the

Operations

sections within a step. The step numbers aren't visible until you click

and save the calculation.

Step	Condition	Operation	Type	Value
1	Worker is Not Hourly	Exit	Numeric	0
2		Set	Calculation	Hourly Wages
3		Multiply	Lookup Table	Lookup Table : Bonus Percent (based on Cost of Living) Column : Bonus Percent Period Date Indicator : Based on Period End Date
4	Hourly Wages > 1000	Add	Numeric	100
5		Round	Rounding Definition	Round to nearest 0.05
6		Max	Numeric	1500

Click

When you launch a payroll calculation with this calculation, Workday:

Returns a result of 0 for salaried workers.

Retrieves the hourly wages for workers paid with an hourly rate.

Calculates a percentage of the workers' hourly wages based on their primary work state.

Adds 100 to the bonus for workers with hourly wages greater than 1000.

Rounds the bonus amounts to 0.05.

Applies a maximum of 1500 to the bonus amount.

Concept: Step-Based Calculation

Create a Step-Based Calculation