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Compensation Items

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Compensation Items

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Compensation Items are essential components when designing the compensation structure for workforce budgeting. They are the various employee compensations paid to employees of an organization. The number of compensation items required depends on the budget requirements of the organization.

Users who have access to Maintenance > WFP define salary, payroll tax, and employee benefits as compensation items. Each compensation item is mapped to a leaf-level member from the account segment and is calculated based on a defined basis. It is recommended to create compensation items that can be adjusted or vary annually.

All compensation items, except those with the compensation basis of Direct Data Input, Wage Type, and Wage Type without reviews, can be added. These compensation items can be assigned to employees with varying effective periods and percentages.

Compensation items can be mapped to an employee type or individual employees.

However, compensation items that vary annually cannot be edited on the Employee list page. Additionally, multiple raise details cannot be updated from the Mass Update application page. It's important to note that compensation items are not directly linked to the rate or hours loaded for wage calculations. The default values set at the compensation level are applied to all employees. If changes are needed, they should be made at the employee level on the Employee page.

In Workforce Planning, compensation items are crucial in identifying and accounting for individual employee expenses. They encompass every compensation paid to or on behalf of an employee, including salaries, benefits, state and federal taxes, and more. When introducing new types of compensation, it is important to create corresponding compensation items in workforce planning to ensure accurate accounting and inclusion in the planning process.

Once you navigate to the Workforce Planning Setup option, go to the Compensation Items tab.

How-Tos

Refer to the following how to's for quick reference:

Now, let's explore all the options on the Compensation Items tab:

Note:

The order of the tabs in this article is structured based on the sequence of options visible on this screen.

This option allows you to add the compensation items.

To add a compensation item, do the following:

Select the scenario.
Click Add to add a new compensation item.
In the General Information tab:
1. Enter the Code and Name of the Compensation Item in the respective fields.
2. Select the Compensation Group the Compensation Item belongs to.
3. Select the Account where compensation item data will be posted.
  Note:
  The account must be an MTD-type account.
In the Compensation Basis tab:
1. Select the desired value for the Compensation Basis field. Click hereto learn more about Compensation Basis.
  Note:
  The following fields depend on the selection made in the Compensation Basis field.
2. Select the Compensation Payment frequency, Calculation Basis, and any other required fields.
In the Settings tab:
1. Select any of the following options:
  - Statistical Compensation: Enables the Aggregate Formula field to select the formula to associate with the statistical compensation item used for headcount purposes.
  - Apply Pay Plan: Allows budget users to modify the spread by compensation item. Click here to learn more about applying for a pay plan.
  - Set as Global Constant: Prevents budget users from modifying a rate. Click here to learn more on how you can lock a compensation item.
Click Save to save your changes.

This option is used to edit an existing compensation item.

To edit a compensation item, do the following:

Click the Edit icon. The Edit Compensation Item page appears.
Update all the data as required.
Click Save to save your changes.

This option is used to delete the compensation item.

To delete a compensation item, do the following:

Select the compensation item you want to delete.
Now, click the delete icon. A confirmation message appears on the screen to confirm the deletion.

Note:

You cannot delete the compensation item if it is mapped against an employee.

This option allows you to copy an existing compensation item.

To copy a compensation item, do the following:

Select an existing compensation item
Click Copy. The Copy Compensation pop-up appears.
Enter the New Compensation Code and New Compensation Name. These fields are already pre-filled with Copy_ followed by the name of the compensation item you've selected.
Click Add. You can see the compensation item being added to the list. Open the compensation item and edit if required.

Note:

This option does not appear when you select the Default scenario from the Scenario drop-down.

The Publish compensation option prompts the system to automatically update the data for all compensation items to the workforce cube (available for all scenarios except for Default Scenario).

This option simplifies your search process. By clicking the Apply Filter option, you can narrow down your search results by:

Compensation Item Code
Compensation Item Name
Basis
Compensation Group

The search fields appear below all the columns listed above, making it easier for you to find your compensation item.

These options allow you to export the compensation items' details.

Export

The Export option allows you to export the data of all the compensation items. This has the following options:

The Compensation Item Summary report provides information about the compensation items, their codes, names, compensation basis, and the compensation groups they are associated with.
The Detailed Compensation Report exports the data of all employee compensation items for that scenario. If you want to export only the data displayed on the Compensation Items tab, use the Compensation Item Summary option.

Print

This option allows you to print the entire compensation items List. The exported data will be identical to what is displayed on the Compensation Items screen.

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Compensation Items

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