Create Rounding Rules

In Compensation Setup > Rounding Rules, you can configure rules to round salary increase allocations, bonus payouts, bonus eligible salaries, equity allocations, and proration factors for employees in a compensation cycle.

The Rounding Basis field determines how rounding rules are applied to compensation values. It contains the following options:

• Employee Currency: Uses each employee’s currency and applies to salary increases, bonus payouts, and bonus eligible salary.
• Cycle Currency: Uses the compensation cycle currency and applies to equity allocations.

Rounding rules details

Rule Type	Rounding Basis	Rounding Increment	Display Precision
Cash	Cycle Currency	0.00001, 0.0001, 0.01, 0.1, 1, 5, 10, 50, 100, 500, 1000	0 (##), 1 (##.#), 2 (##.##), 3 (##.###), 4 (##.####), 5 (##.#####)
Cash	Employee Currency	0.01, 0.1, 1, 5, 10, 50, 100, 500, 1000	0 (##), 1 (##.#), 2 (##.##)
Quantity		0.01, 0.1, 1, 10, 100	0 (##), 1 (##.#), 2 (##.##), 3 (##.###), 4 (##.####), 5 (##.#####)
Percentage		0.01, 0.1, 1	0 (##), 1 (##.#), 2 (##.##)

To add a rounding rule:

1. Go to Compensation Setup > Rounding Rules and click Add.
2. In the General section:
   1. Name: Enter a name for the rounding rule.
   2. Description: (Optional) Enter a description for the rounding rule.
   3. Rule Type: In the drop-down list, select the type of rule to round values:
      • Cash: The rounding rule applies to cash allocations in the compensation cycle.
      • Quantity: The rounding rule applies to the quantity of equity allocated in the compensation cycle.
      • Percentage: The rounding rule applies to the proration factor in the compensation cycle.
   4. Rounding Basis: Shows when the Rule Type is set to Cash. In this drop-down list, select the currency used to apply the rounding rule to employee compensation:
      • Cycle Currency: The rounding rule applies to equity allocations and uses the compensation cycle currency.
      • Employee Currency: The rounding rule applies to salary increases, bonus payouts, and bonus eligible salaries, and uses the employee's currency and pay type.
   5. Active: By default, the checkbox is selected, and the rounding rule is active. You can clear the checkbox if you don’t want the rounding rule to be available when configuring pay components for compensation cycles.
3. In the Details section, click Add to configure the details for the selected rule type.
   • For the Cash rule type, do the following in each column:
     • Currency: Select one or more currencies for which the rounding rule applies. For equity rewards, the base currency of the compensation cycle is the allocation currency.
     • Employee Pay Type: Select one or more pay types for which the rounding rule applies.
   • For the Cash, Quantity, and Percentage rule types, do the following in each column:
     • Rounding Method: Select the rounding method for the rounding rule:
       • None: The rounding method isn’t applicable. If you select this option, the Rounding Increment column is unavailable.
       • Round Up: Rounds allocations up to the multiple of the rounding increment.
       • Round Down: Rounds allocations down to the multiple of the rounding increment.
       • Round to Nearest: Rounds allocations up or down to the nearest multiple of the rounding increment.
     • Rounding Increment: Select the rounding increment used to apply the rounding method (see the table at the beginning of this topic):
       • Example for Cash rule type: If you selected the rounding method as Round Up and the rounding increment as 500, when the allocation is $850, Dayforce rounds up the amount to $1,000.
       • Example for Quantity rule type: If you selected the rounding method as Round Down and the rounding increment as 10, when the quantity of equity is 28, Dayforce rounds down the quantity to 20.
       • Example for Percentage rule type: If you selected the rounding method as Round to Nearest and the rounding increment as 1, when the proration factor is 3.45%, Dayforce rounds the percentage to the nearest value of 3%.
     • Display Precision: Select the number of decimal places to show the rounded values (see the table at the beginning of this topic).
     • For example, to show amounts in two decimal places, select 2 (##.##).
4. Click Save.

Note: You can’t edit the rule type or rounding basis after the rounding rule is used in one or more compensation cycles or compensation plans. You also can’t update the rounding rule configuration if the rule type is Cash with an Employee Currency rounding basis, or if the rule type is Percentage. The compensation cycle doesn’t need to be published.