Defining lump sum payments (percent of base pay rate)

Note: 

Lump sum rules are ignored if a salary structure is not on the work assignment.

  1. Select Compensation > Set Up > Compensation Planning > Planning Rules.
  2. Open the planning rule.
  3. On the Lump Sum Payment Rules tab, select Create > Create Percent of Base Pay Rate Rule.
    Note: 

    The Lump Sum Payment Rules tab is displayed only if you select the Allow Lump Sum Payments check box for on the Options tab.

    On the Create Percent of Base Pay Rate 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.

    Percent of Base Pay

    Specify a percent for the lump sum. The lump sum will equal the base pay times the percent.

    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.