Defining bonus award pay components

Specify the date on which the pay component is effective. This date should be on or before the compensation program version to which you are attaching this pay component.

Specify a name and a description for the pay component.

Select this check box to indicate that the pay component is active.

You can use this field to further categorize or describe the component.

If this field is specified, then it is defaulted on the compensation program pay component. From there it is defaulted on the employee compensation program and is then displayed on the enrollment summary form for the resource.

Specify any information for the resource to view about the compensation program. For example, what is being measured. This information is viewed by the resource on their Resource Compensation view for Employee Spaces.

Select a compensation schedule. This schedule determines how frequently the pay component is calculated and paid out.

Select a compensation table. The table defines the payout calculation that is based on levels of attainment.

Select if compensation is prorated for partial compensation periods.

For example, if a compensation period is quarterly, and a resource becomes eligible after the period starts, then select Prorate to prorate the compensation for that period. If you select None, then the resource receives the full amount.

Proration is based on eligibility dates. If you select Prorate in this field, then use the Prorate Method and Nearest Point fields to determine how the proration works.

If you selected Prorate in the Prorate Option field, then select the method. This method determines if the calculation uses months or days for the amount to be prorated.

If you selected Prorate in the Prorate Option field, then select if the proration starts before or after the entry point.

For example, if a compensation period is from January 1 to March 31, the proration method is months, and a resource becomes eligible February 15. Select Before to prorate the amount from February 1. Select After to prorate the amount from March 1.

Select the rounding method to use.

Select Normal to round up the number if the last digit is five or greater. It rounds down if the last digit is less than 5.

Select High to round up the number.

Select Low to round down the number.

Specify the rounding precision. For example, to round to two decimals, specify 0.01.

Optionally, specify a pay code.

This field is for information only and can be interfaced to a payroll application.

Select the option that determines how the application handles payouts that exceed a resource's target compensation. If you select Payout Calculated Amount, then the application creates the payout even if the payout exceeds the target compensation.

If you select Target Compensation, then the application creates the payout up to the target compensation.

If you select Do Not Create Payout, then the application does not create a payout and a warning is sent to the compensation analyst.