Budgets

Before You Begin: Generally, the compensation administrator receives budget approval for the organization before configuring the compensation cycle.

In the Budgets tab of Compensation Setup > Compensation Cycles, you assign a budget amount to each manager in the compensation cycle.

When you go to the Budgets tab and click Generate, Dayforce shows a budget worksheet with the list of configured pay components and the org structure that you defined. If compensation plans are configured for the pay components, the budget worksheet is generated based on the bonus eligible salary configured in the plan period of only eligible employees to determine the total base salary. You can set the budgets for each pay component in the cycle using the Set Budget option in the toolstrip, and then adjust the amounts as needed for each manager. See Set Budgets for Pay Components.

If one or more of the pay components were configured to use imported bonus eligible salary values, Dayforce shows a warning icon () next to those pay components in the budget worksheet. This warning indicates that you need to import the salaries before continuing. See Import Eligible Salaries.

If the Apply Target Bonus checkbox was selected for a pay component, Dayforce shows the Total Base Salary and Total Target Bonus columns, in addition to the budget percentage and amount fields, in the budget worksheet. It also shows (By Target Bonus) next to the Budget column to indicate that it depends on the configured target bonuses:

If the Apply Target Bonus checkbox was selected for a pay component that is based on a compensation plan configured with a flat amount target type, Dayforce shows only the Total Target Bonus and Budget (By Target Bonus) columns in the budget worksheet.

If the Apply Target Bonus checkbox was selected for a pay component based on the compensation plan configured with a percentage target type, the total target bonus is calculated using the job assignment target bonus or target bonus percentage configured in the plan for eligible employees. You can define target bonus overrides in the Compensation Plan Administration feature. See Configure Employee Plan Target Bonus Overrides.

For these pay components, you can adjust the budget (or funding) for target bonus payouts in the worksheet by entering a new value as a fixed amount or as a percentage of the total target bonus in the Set Budget dialog box, or you can use the Bonus Funding by Employee import to set the budget based on custom funding percentages for each employee. See Import Bonus Funding by Employee.

If the Target Type was selected as None and the Percentage of Salary checkbox cleared for all equity pay components in the compensation cycle, then:

• The Set Budget option in the toolstrip is disabled.
• Important: If one of the pay components with the equity reward type in the compensation cycle has the None target type and the Percentage of Salary checkbox cleared, then that specific pay component isn’t shown when you click the Set Budget option in the toolstrip.
• The Total Base Salary and % columns aren't shown in the budget worksheet.

In this case, you can continue by selecting the No Budgets Distributed checkbox or using the Import > Budgets by Manager drop-down list in the toolstrip. You can also enter the budget as a flat amount for each manager in the worksheet.

If the Target Type was selected as None, the Percentage of Salary checkbox and the Import Eligible Salaries option was selected for the equity pay component; you must import eligible salaries before generating the budget. Dayforce shows a warning icon () next to the pay components in the budget worksheet. Use the Import > Eligible Salaries drop-down list to import eligible salaries. See Import Eligible Salaries.

If the Target Type was selected as Flat Amount, and the Apply Target Equity checkbox was selected, the Total Target Equity column is shown in the budget worksheet. The total target equity value is calculated and shown for each manager based on the number of employees and their target equity. The budget is calculated and shown as % of the total target equity. When proration rules are configured for the pay component, the proration factor is calculated and shown with the total target equity. You can set the budget using the Set budget option in the toolstrip or select the No Budgets Distributed checkbox. For equity pay components, you can import budgets for managers using the Import > Budgets By Manager drop-down list in the toolstrip. You can also import target equity for employees using the Import > Target Equity by Employee drop-down list in the toolstrip.

In the Budgets tab, you can also do the following:

• Import Bonus Factors
• Import Eligible Salaries
• Import Budgets by Manager
• Import Bonus Funding by Employee
• Import Target Equity by Employee

Note: For compensation cycles that include hourly employees, Dayforce calculates the budget using an annualized salary for these employees. See How Salary Is Calculated for Hourly Employees.

Regenerate the Budget

If you edit the information in any of the preceding tabs during configuration, Dayforce shows a warning icon () and message in the Budgets tab to indicate that the data is no longer current. You can regenerate the data in the tab to reflect changes by clicking Regenerate in the toolstrip.

Important: When you regenerate the budget any changes that you made manually are lost, along with any bonus factors or eligible salaries that you imported.