Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Example: Set Up 2-Tier Fringe Benefits Based on Salary for Earnings (CAN, USA)

Example: Set Up 2-Tier Fringe Benefits Based on Salary for Earnings (CAN, USA)

This example illustrates how you can apply different fringe benefit percentages to different salary tiers.
You want to set 2 salary bands for fringe benefits on academic positions with earnings up to and over 60,000. You can apply these fringe benefits to the position earnings and position restrictions of the cost center for your company's CEO and Chief Human Resources Officer (CHRO):
  • Lower salary band: 25%.
  • Higher salary band: 20%.
Create a CEO and CHRO cost center and cost center hierarchy.
Create these earnings:
  • Base Pay - Academic
  • Communication Device Allowance
  • Housing Allowance
Create these compensation plans:
  • Communication Device Allowance Plan
  • Housing Allowance
  • Academic Salary Plan
Set up
FY 2020 - 2021 - Academic Year
 fiscal year.
Security:
Set Up: Position Commitment Accounting
 domain in the Core Payroll functional area.
  1. Access the
    Create Fringe Benefit Commitment Rule
     task.
  2. Enter
    Tiered Benefits
     in the
    Description
     field.
  3. Select these values in the
    Rule Conditions
     grid:
    And/Or
    Source External Field or Condition Rule
    Relational Operator
    Comparison Type
    Comparison Value
    And
    Cost Center Hierarchies for Fringe Commitments
    any in the selection list
    Value specified in this filter
    Cost Center Hierarchy
  4. Click
    OK
    .
  5. Access the
    Create Payroll Commitment Rule
     task.
  6. Select
    Alma Mater University (USA)
     for the Company.
  7. Select
    FY 2020 - 2021 - Academic Year
     for the Fiscal Year.
  8. Enter these values on the
    Payroll
     tab:
    Earning
    Behavior
    Compensation Elements for Earning
    Compensation Plan for Compensation Elements
    Base Pay - Academic
    Leave blank to apply to commitments, obligations, and fringe benefits.
    Base Pay - ACP - Academic Pay Enabled
    Academic Salary Plan
    Housing Allowance
    Leave blank to apply to commitments, obligations, and fringe benefits.
    Housing Allowance - Academic Pay Enabled
    Housing Allowance Plan
    Communication Device Allowance
    Leave blank to apply to commitments, obligations, and fringe benefits.
    Communication Device Allowance - Academic Pay Enabled
    Communication Device Allowance Plan
  9. Enter these values on the
    Fringe Benefit
     tab:
    > Base Amount YTD
    <= Cap Amount YTD
    Default Fringe Percent
    Fringe Benefit Rule
    Fringe Percentage
    0.00
    60,000.00
    22
    CEO and CHRO Cost Center
    25
    60,000.01
    800,000.00
    17
    CEO and CHRO Cost Center
    20
  10. Click
    OK
    .
  11. Click
    Done
    .
The initial payroll commitment results for a position in the higher salary band that receives all allowances are:
Pay Component
Amount
Fringe Percent
Fringe Benefit Amount
Base Pay Academic
7,000.00
20%
$1,400.00
Housing Allowance
500.00
20%
$100.00
Communication Device Allowance
150.00
20%
$30.00
The initial payroll commitment results for a position in the lower salary band that receives all allowances are:
Pay Component
Amount
Fringe Percent
Fringe Benefit Amount
Base Pay Academic
6,000.00
25%
1,500.00
Housing Allowance
500.00
25%
125.00
Communication Device Allowance
150.00
25%
37.50