Viewing and finalizing pending lump sum payouts for rate progressions

Lump sum payments are generated based on rate progression rules for employees who have reached the last step of their grade or are eligible for step movement. Employees must have time records created for payouts to be processed.

Lump sum calculations occur when an employee moves to a new step or reaches the maximum step, provided that both Allow Lump Sum Payments and Allow Lump Sum on Step Move are enabled in the rate progression rule. Eligible employees receive payouts based on the criteria defined in the rule.

For example, an employee moving from Step 2 to Step 3 under a qualifying rule will receive a new pay rate and a lump sum payout. An employee at the maximum step may receive only the lump sum payout when processed.

  1. Select Compensation > Pay Rate Processing > Rate Progression > Lump Sum Payouts.
  2. On the Pending tab, open a payment to review the details.
    You can change the dates, the calculated payment amount and the pay code.
  3. To finalize one or more payments, select the payments on the Pending Payouts tab and select Actions > Finalize Payout.
    The finalized payments are displayed on the Finalized tab. They can be interfaced to a payroll application.

    When the interface records are created, the payments are moved to the Submitted tab.

    When the payout record is finalized and the payment schedule for the employee’s primary work assignment has HR Payroll enabled, a time record is created in Approved status. The payout record is updated to Submitted To Payroll status. The time record can be accessed from the payout record.

    • If errors are displayed, the time record is not created and the payout record is set to Finalized With Error. After the error is corrected, the Submit To Payroll action can be taken to finalize the payout and create the time record.
    • For time records to be processed correctly, the pay code for the payout record must be set up with a calculation type of Do Not Calculate.