Understanding Pre-built Calculation Basis

A Human Resource administrator can dynamically define a compensation structure by adding compensation items. Calculation of these compensation amounts in the human resource budgets can be dependent upon business rules. For example, a compensation amount calculation for a compensation item like FICA follows a specific business rule such as 6.2% of Total Wages with an annual cap of $5500. Similarly, calculations for Employee Pension Plan or Accrued Vacation can follow different business logic.

Various pre-defined calculation bases are delivered, which can be used as building blocks for modeling your actual compensation structure to be used in the budgeting process.