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Example: Set Up Earnings with Different Fringe Benefit Percentages Based on Different Rules

Example: Set Up Earnings with Different Fringe Benefit Percentages Based on Different Rules

You want a 20% fringe benefit on teaching pay earnings for the positions and position restrictions in the lower salary band of the CEO and CHRO cost center. You also want to provide 10% for housing allowances and 10% for cell phone allowances.
Create a CEO and CHRO cost center and cost center hierarchy.
Create these earnings:
  • Base Pay - Academic
  • Communication Device Allowance
  • Housing Allowance
Create these compensation plans:
  • Academic Salary Plan
  • Communication Device Allowance Plan
  • Housing Allowance
Security:
Set Up: Position Commitment Accounting
 domain in the Core Payroll functional area.
  1. Access the
    Create Fringe Benefit Commitment Rule
     task.
  2. Enter
    Teaching Benefits
     in the
    Description
     field.
  3. Enter these values on the
    Rule Conditions
     grid:
    And/Or
    Source External Field or Condition Rule
    Relational Operator
    Comparison Type
    Comparison Value
    And
    Earning for Fringe Commitments
    in the selection list
    value specified in this filter
    Base Pay - Academic
    And
    Earning for Fringe Commitments
    in the selection list
    value specified in this filter
    Communication Device Allowance
    And
    Earning for Fringe Commitments
    in the selection list
    value specified in this filter
    Housing Allowance
  4. Click
    OK
    .
  5. Access the
    Create Payroll Commitment Rule
     task.
  6. Select
    Alma Mater University (USA)
     for the Company.
  7. Select
    FY 2018 - 2019 - Academic Year
     for the Fiscal Year.
  8. Enter these settings on the
    Payroll
     tab:
    Earning
    Behavior
    Compensation Elements for Earning
    Compensation Plan for Compensation Elements
    Base Pay - Academic
    Leave blank to apply to commitments, obligations, and fringe benefits.
    Base Pay - ACP - Academic Pay Enabled
    Academic Salary Plan
    Communication Device Allowance
    Leave blank to apply to commitments, obligations, and fringe benefits.
    Communication Device Allowance - Academic Pay Enabled
    Communication Device Allowance Plan
    Housing Allowance
    Leave blank to apply to commitments, obligations, and fringe benefits.
    Housing Allowance - Academic Pay Enabled
    Housing Allowance Plan
  9. Enter these settings on the
    Fringe Benefit
     tab:
    > Base Amount YTD
    <= Cap Amount YTD
    Default Fringe Percent
    Fringe Benefit Rule
    Fringe Percent
    0.00
    60,000.00
    25%
    Academic Staff - FT
    20%
    CEO and CHRO Cost Center
    10%
These are the initial payroll commitment results for a position that receives these allowances for the CEO/CHRO cost center:
Pay Component
Amount
Fringe Percent
Fringe Benefit Amount
Base Pay - Academic
$6,000.00
20%
$1,200.00
Communication Device Allowance
$150.00
10%
$15.00
Housing Allowance
$500.00
10%
$50.00