Enabling hourly employee allowance rate calculation

Use this optional feature to control how the Work Assignment Total Pay Rate is calculated for hourly employee allowances when an employee has a low or near-zero FTE value. When this feature is enabled, the system applies either an FTE-adjusted or flat allowance calculation to produce accurate pay rate results for hourly employees with FTE values such as 0.001 or 0.0002.

Before you enable hourly employee allowance rate calculation, ensure that these requirements are met:

On the work assignment, Pay Rate Type is set to Hourly. This calculation does not apply to salaried or monthly pay rate types.
On the employee allowance, you must enable Include in Total Pay Rate. This setting is required for the allowance calculation to be included in the employee's Work Assignment Total Pay Rate.
On the work assignment, you must specify Full Time Annual Hours. This value is used in the allowance calculation. If this field is blank or zero, the allowance is not included in the employee's Work Assignment Total Pay Rate.

Select Administration > Setup.
In the Primary pane, select Organization Configuration.
In the Hourly Employee Allowance Rate Calculation section, select the Enable Hourly Employee Allowance Rate Calculation check box.
Specify this information:

Calculate Employee Allowance By

Select FTE Adjusted Allowance or Flat Allowance.

FTE Adjusted Allowance

Select this option to calculate the allowance based on the employee's FTE value. Use this option when the amount specified on the allowance is the full-time annual amount.

Flat Allowance

Select this option to provide the full annual allowance amount regardless of the employee's FTE value. For employees with a low or near-zero FTE, the FTE Threshold limits the hourly allowance amount.

FTE Threshold

If you select Flat Allowance, specify the FTE value that is used instead of the employee's actual FTE when the employee's FTE is at or below the threshold. The hourly allowance amount is calculated using the threshold value for employees whose FTE is at or below the specified threshold. For employees whose FTE is above the threshold, the calculation uses the employee's actual FTE.
Click Save.