Defining lump sum payments (flat amounts) for planning rules
Lump sum rules are ignored if a salary structure is not on the work assignment.
- Select Compensation > Set Up > Compensation Planning > Planning Rules.
- Open the planning rule.
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On the Lump Sum Payment Rules
tab, select Create > Create Flat Amount Rule.
Note:
The Lump Sum Payment Rules tab is displayed only if you select the check box for Allow Lump Sum Payments on the Options tab.
On the Create Flat Amount Rule form, specify this information:
- Eligibility Group
-
Select an eligibility group for the lump sum payment.
- Pay Code
-
Specify a pay code that will be stored on the payment records for interfacing with a payroll application.
- Amount
-
Specify the amount for the lump sum payment. Everyone in the eligibility group you select will receive this amount.
- Calculate Flat Amount
-
This is calculated by taking the amount awarded by a manager and subtracting the salary structure maximum.
- Reduce Budget
-
Select to indicate that the flat amount reduces the budgeted award pool.
- Percent of Salary Range Threshold
-
Specify the percentage for the salary range threshold.
The lump sum will be created when the resource's new base rate of pay exceeds the salary structure maximum at this percentage. For example, if the salary structure maximum is 100,000 and the threshold is 90%, a lump sum is created when the resource's new rate exceeds 90,000.
- Click Save.