Example: Set Up Earnings with Different Fringe Benefit Percentages Based on Different Rules (CAN, USA)
You want a 20% fringe benefit on teaching pay earnings for the positions and position restrictions in the lower salary band of the CEO and CHRO cost center. You also want to provide a 10% fringe benefit for housing allowances and a 10% fringe benefit for communication device allowances.
Create a CEO and CHRO cost center.
Create these earnings:
- Base Pay - Academic
- Communication Device Allowance
- Housing Allowance
Create these compensation plans:
- Academic Salary Plan
- Communication Device Allowance Plan
- Housing Allowance
Security:
Set Up: Position Commitment Accounting
domain in the Core Payroll functional area. - Access theCreate Fringe Benefit Commitment Ruletask.
- EnterTeaching Benefitsin theDescriptionfield.
- Enter these values on theRule Conditionsgrid:And/OrSource External Field or Condition RuleRelational OperatorComparison TypeComparison ValueAndEarning for Fringe Commitmentsin the selection listvalue specified in this filterBase Pay - AcademicAndOrganizations for Fringe Commitmentsany in the selection listvalue specified in this filterCEO and CHRO
- ClickOK.
- Create another rule and enterTeaching Allowancesin the description field.
- Enter these values on theRule Conditionsgrid:And/OrSource External Field or Condition RuleRelational OperatorComparison TypeComparison ValueAndEarning for Fringe Commitmentsin the selection listvalue specified in this filterCommunication Device AllowanceHousing Allowance
- ClickOK.
- Access theCreate Payroll Commitment Ruletask.
- SelectAlma Mater University (USA)for the Company.
- SelectFY 2018 - 2019 - Academic Yearfor the Fiscal Year.
- Enter these settings on thePayrolltab:EarningBehaviorCompensation Elements for EarningCompensation Plan for Compensation ElementsBase Pay - AcademicLeave blank to apply to commitments, obligations, and fringe benefits.Base Pay - ACP - Academic Pay EnabledAcademic Salary PlanCommunication Device AllowanceLeave blank to apply to commitments, obligations, and fringe benefits.Communication Device Allowance - Academic Pay EnabledCommunication Device Allowance PlanHousing AllowanceLeave blank to apply to commitments, obligations, and fringe benefits.Housing Allowance - Academic Pay EnabledHousing Allowance Plan
- Enter these settings on theFringe Benefittab:> Base Amount YTD<= Cap Amount YTDDefault Fringe PercentFringe Benefit RuleFringe Percent0.0060,000.0025%Teaching Benefit20%Teaching Allowances10%
These are the initial payroll commitment results for a position that receives these allowances for the CEO and CHRO cost center:
Pay Component | Amount | Fringe Percent | Fringe Benefit Amount |
|---|---|---|---|
Base Pay - Academic
| $6,000.00
| 20%
| $1,200.00
|
Communication Device Allowance
| $150.00
| 10%
| $15.00
|
Housing Allowance
| $500.00
| 10%
| $50.00
|