Defining incentive compensation program plan entry rules

Plan entry rules determine the eligibility waiting periods for compensation program plans. For example, one month after the hire date or 90 days after employment.

If you do not define an entry rule, the effective date of the compensation program plan is the effective date of when the resource met enrollment group criteria.

Use this procedure to define plan entry rules for incentive compensation plans.

  1. Select Compensation > Set Up > Incentive Compensation.
  2. On the Plan Entry Rules tab, click Create.
  3. Specify this information:
    Effective Date

    Specify a date on which the entry rules for the compensation plan are effective. This date should be on or before the compensation program version to which you are attaching this plan entry rule.

    Plan Entry Rule

    Specify a short and long description of the rule.

  4. Optionally, use the Waiting Period section to determine the amount of time a resource must wait before becoming eligible for the compensation program plan. Specify this information:
    Start Date Option

    Select the date to use if there is a waiting period before the resource compensation program becomes effective. For example, 20 days from hire.

    Unit Type

    Select the waiting period unit in days, weeks, semimonths, months, or years.

    Number Of Units

    Specify the number of units for the waiting period. For example, if you select Adjusted Start Date in the Start Date Option field, Months in the Unit Type field, and 3 in the Number Of Units field, the resource must wait three months from the adjusted start date to be eligible for the compensation program.

  5. Optionally, use the Adjust To First Of Month Or Entry Points section to determine the exact entry date after the waiting period. Specify this information:
    First Of Month

    Select this check box if the entry date is the first of the month after the waiting period. For example, if a resource becomes eligible on February 14, and you selected this check box, the resource enters the plan on March 1.

    If you select this field, leave the Entry Date Point fields blank.

    Entry Date Point One

    If the entry date is a specific calendar point, use the calendar fields to select the date.

    If you select specific entry points, select a value in the Nearest Point field and clear the First Of Month check box.

    Nearest Point

    If you select specific calendar points, select After or Before to determine if the entry date for the compensation program plan is the nearest point before or after the requirement is met. For example, you select the 15th of each month as the entry date for the compensation program plan. A resource meets the eligibility on the 21st of August. If you select After, the entry date is September 15. If you select Before, the entry date is August 15.

  6. Click Save.