Actions based on calendar year

Actions, such as the US FICA calculation, are based on a calendar year cap. The company's fiscal year may not be the same as the calendar year.

In this scenario, set the action's calculation cycle to calendar year. Since the fiscal year starts sometime during the calendar year, the position (not employee) start date is used to determine when the cap is reached for the first part of the year.

For example, the fiscal year runs October through September and the percent is applied until the Base On End value of 108,000 is reached.

The position salary is 200,000.

The budget year is 2015 - 2016.

If the position start date is October 1, 2015, FICA calculates for October through June. This is because the position did not reach the maximum 108,000 base salary during the calendar year 2015. The calculation then restarts in January 2016 and completes in June 2016 when the maximum 108,000 salary is reached.

If the position start date is ~September 2010, FICA does not calculate for October through December 2015 because the maximum 108,000 salary would have been reached in June 2015 before the budget cycle starts in October. The calculation then restarts in January 2016 and completes in June 2016 when the maximum 108,000 salary is reached.

The important parameter is the position start date as that date drives the action calculation.