Effective Date Fields for Compensation Plans

Defines the general details of the compensation plan instance.

Click the calendar icon and select a date to define when the plan instance will be effective. The calendar shows months and dates based on the Plan Period, Start Day, and Start Month that you selected for the compensation plan.

For example, if the plan period is quarterly with the start day as the first day of the month, and the start month as January, only the first day in the months January, April, July, and October are available for selection. For a semi-annually plan period with the start day as the last day of the month, and the start month as April, only the dates 30 or 31 in the months April and October are available.

(Optional) Click the calendar icon and select a date to define when the plan instance will no longer be effective. The calendar shows months and dates based on the selected Effective From date. If this field is left blank, the plan instance shows “No End Date” in the left-side panel once saved.

Select the earning codes that will be associated with the effective date record during payroll processing. Earning codes are configured in Payroll Setup.

Defines the waiting period for employees to be eligible for a payout in the compensation plan.

Enter a value and select either Days or Months in the drop-down list to define the waiting period for employees to receive a payout in the compensation plan. By default, the waiting period is shown as Zero Months.

This field applies only if the waiting period is configured to be greater than zero days or months in the plan. In the drop-drown list, select the rounding rules that determine when an employee becomes eligible to receive a payout in a plan as follows:

• None: Selected by default. No rounding rules are applied to determine when employees should receive a payout in the plan. The employee becomes eligible for a payout when the waiting period ends.
• Start of Month: Dayforce uses the first day of the month when the employee becomes eligible in the compensation plan (after the waiting period ends) to determine when the employee is eligible to receive a payout in the plan.
• Start of Next Month: Dayforce uses the first day of the month after the employee becomes eligible in the plan (after the waiting period ends) to determine when the employee is eligible to receive a payout in the plan.
• Closest Start of Month: Dayforce uses the first day of the employee eligible start month, or the next month, depending on whichever is the closest date after the waiting period ends, to determine when the employee is eligible to receive a payout in the plan. For employees who start in the plan on or before the 15th of the month, Dayforce uses the first day of the month for the payout. For employees who start in the plan after the 15th of the month, Dayforce uses the first day of the next month for the payout.
• For example, if the Waiting Period for a compensation plan is set as One Month and an employee starts on January 22, the payout date is determined as follows for each End Date Rounding option:
• None: The employee is eligible for a payout in the plan on February 22.
• Start of Month: The employee’s waiting period is until February 22 and they’re eligible to receive a payout on February 1.
• Start of Next Month: The employee’s waiting period is until February 22 and they’re eligible to receive a payout on March 1.
• Closest Start of Month: The employee’s waiting period is until February 22 and they’re eligible to receive a payout on March 1.

Note the following:

• If an employee moves from one group to another within the same plan, the waiting period remains the same and is calculated based on when the employee initially started in the plan.
• If an employee moves out of the plan, and then becomes eligible for the plan again, the waiting period rules are applied again based on when they were re-added.
• If an employee starts in a plan after the group effective end date, the employee isn’t considered for a payout.
• If an employee starts in a plan but becomes eligible after the waiting period and the Payout Eligibility Cutoff Date has passed, the employee isn’t eligible for a payout.

Defines the target bonus details for eligible employees.

Select one of the following options to define the target type:

• Percentage of Base Pay: Dayforce considers a percentage of the employee’s annual salary as the target bonus in the compensation plan. When you select this option, the Target Percentage and Job Assignment Target Bonus fields are added to the screen.
• Percentage of Total Pay: Dayforce considers a percentage of the employee's total pay in the pay period as the target bonus in the compensation plan. When you select this option, the Target Percentage, Eligible Earning Codes, and Job Assignment Target Bonus fields are added to the screen.
• Amount: Dayforce considers a flat amount as the target bonus in the compensation plan. When you select this option, the Target Amount, Currency, and Job Assignment Target Bonus fields are added to the screen.

Enter a percentage value for the target bonus. You can enter a value of maximum 999%.

Note: This field shows only when the Target Type is selected as Percentage of Base Pay or Percentage of Total Pay.

Select one or more earning codes to calculate the total pay for employees in the payout period based on their actual earnings. Earning codes are configured in Payroll Setup. .

Note: This field shows only when the Target Type is selected as Percentage of Total Pay.

Enter a flat amount for the target bonus. You can’t enter a value greater than 9999999999999.99 or a negative value.

Note: This field shows only when the Target Type is selected as Amount.

Select the currency for the target amount. You can define system default currencies and exchange rates in the System Admin > Exchange Rates feature.

Note: This field shows only when the Target Type is selected as Amount.

Select one of the following options:

• Apply: Select this option to apply the target bonus that is set for the employee at the primary job assignment level. If the job assignment target bonus is blank, Dayforce considers the value entered in the Target Percentage field to calculate the target bonus for the employee. If an employee’s job assignment changes in the plan period, a prorated target bonus is calculated for the employee in the payout period. See Bonus Pay Component Fields.
• Do Not Apply: This option is selected by default and the target bonus set for the employee at the primary job assignment level isn’t used. The target bonus value entered in the Target Percentage field is used if the Target Type is selected as Percentage of Base Pay or Percentage of Total Pay, by default.
• If the Target Type is selected as Amount, this option is disabled, and the target bonus value entered in the Target Amount field is used by default.

Note: The Target Bonus Override (%) configured in an employee’s profile isn’t used to calculate the target bonus for compensation plans. Only job assignment-level target bonuses are used. See Add Job Assignment-Level Target Bonuses.

Defines how employee salaries are used for bonus calculations. This section shows when the Target Type is selected as Percentage of Base Pay or Percentage of Total Pay. This section isn’t shown when the Target Type is selected as Amount.

This option is selected by default, if the Target Type is selected as Percentage of Base Pay and uses employee salaries for the current date as the bonus eligible salary. If an employee is no longer part of the compensation plan during the compensation cycle setup, the employee's salary on the last date of the compensation plan is used.

Note: This option isn’t shown if you selected the Target Type as Percentage of Total Pay.

Select this option to calculate employee salaries based on a selected date in the compensation period. When this option is selected, you must also enter a date and month (without a year) in the Bonus Eligible Salary As of Date column for the period. If you select a date which is later than the employee's last date in the plan, the employee's salary on the last date of the compensation plan is used.

Note: This option isn’t shown if you selected the Target Type as Percentage of Total Pay.

Select this option to prorate employees’ salaries if they had a salary change during the plan period for the compensation cycle. If an employee isn’t part of a compensation plan for the entire payout period, only the salary changes within their time in the plan are used.

Note: This option isn’t shown if you selected the Target Type as Percentage of Total Pay.

Select this option to enable the import of bonus eligible salary information from the Budgets tab of the compensation cycle linked to the compensation plan.

Select this option to calculate salaries based on the employees' actual earnings in the payout period.

Note: This option shows only if you selected the Target Type as Percentage of Total Pay.

Defines the payout eligibility cutoff date and bonus eligible salary as of date used to qualify employees for a payout.

Shows the periods based on the plan period, start day, and start month of the compensation plan. For example, if the plan period is semi-annually, the start day is the first day of the month, and the start month is January, the period shows as Jan 1 - Jun 30 and Jul 1 - Dec 31.

Shows Plan Period by default.

Enter a custom name for the plan period. The plan period shows in this field, by default.

Shows the name of the period.

(Optional) Click the field in this column and then select a date (without a year) that is within the plan period in the calendar. Employees who are eligible in the compensation plan on or before the selected date are eligible for a payout in the period. The year is determined based on the compensation cycle period. If an employee qualifies for the plan but only becomes eligible after the configured waiting period (including the End Date Rounding) and this cutoff date has passed, the employee won’t receive a payout in the period.

For example, a quarterly plan period is dated January 1 - April 31 and the payout eligibility cutoff date is March 1. If the waiting period is configured as one month and an employee starts on February 15, 2020, the employee will be eligible for the plan once the waiting period is completed on March 15, 2020. As the payout eligibility cutoff date on March 1 has already passed, the employee won’t receive a payout for this period. Dayforce shows a warning message if this date is outside the payout period range.

This column shows if the As of Date option is selected in the Bonus Eligible Salary section. Click the field in this column and select a date from the calendar (without a year) to use the employee salaries as of this date to calculate bonus for the compensation period. The year is determined based on the compensation cycle period. Dayforce shows a warning message if this date is outside the payout period range.

To add a bonus factor in this section, click Add, and then enter the details in each of the available columns (explained below).

If needed, you can select a record and click Delete to delete it from the list.

You can also select a record and click Localize to localize the name of the direct bonus factor in a different language.

You can’t localize a metric bonus factor in this section. You must localize metric bonus factors in the Metric Definition tab of Compensation Setup > Compensation Metrics. See Localize Metrics Definition.

Select one of the following options:

• Direct: This option identifies a bonus factor that is based on a direct value. For example, bonus factor based on performance.
• Metric: This option identifies a bonus factor that is based on a metric defined in the Metric Definition tab of Compensation Setup > Compensation Metrics.

Do one of the following based on your selection in the Type field:

• If you selected Direct, enter a name for the bonus factor.
• If you selected Metric, select the name of the metric in the drop-down list. These metrics are configured in the Metric Definition tab of Compensation Setup > Compensation Metrics. See Create Metrics Definitions.

Enter a value to define the weight of the bonus factor when calculating how much of the target bonus is paid out. For example, if you enter 40% for a bonus factor based on performance, Dayforce calculates the payout amount based on 40% of the target bonus amount. You can enter a value that’s greater than 100%. The value shouldn’t exceed 999%.

Enter a bonus payout percentage for each bonus factor in the effective date record of the compensation plan. This percentage is automatically awarded to the employee when the configured target is met. This field is optional when the Allow Edit checkbox is selected.

For a metric bonus factor, this field can be left blank as you can import the bonus payout percentage in Compensation Setup > Compensation Metrics even after the compensation cycle is published. See Import Metrics Data.

For a direct bonus factor, this field is required when the Allow Edit checkbox is cleared. The payout percentage can be greater than 100% and less than 999%. For example, if you configure the bonus payout factor as 150%, the employee gets 150% of the bonus amount.

Select this checkbox to allow editing the payout factor. When this checkbox is selected for a direct bonus factor, the Guideline drop-down list is enabled. When this checkbox is selected for a metric bonus factor, the Guideline drop-down list isn’t enabled.

Select the Bonus guideline that you want to use for the bonus factor. Guidelines can be selected for direct bonus factors. Guidelines aren’t currently available for metric bonus factors.

This list shows only guidelines that were configured in Compensation Setup > Guidelines with the Percent guideline type. Flat amount guidelines aren't shown.

Defines the proration rules used in effective date records of the compensation plan to pay employee bonuses. If multiple proration rules are applicable for an employee, the priority is considered in the following order.

1. Prorate by Eligibility
2. Prorate for New Hire
3. Prorate for Inactive Periods

Select this checkbox to calculate the employee’s proration factor for a plan based on their eligible period in the plan. If a waiting period is configured, then the date when the employee became eligible for the plan is used instead of the plan start date.

This proration rule is calculated for the employee after the waiting period ends, and the employee becomes eligible for a payout. The employee's eligible date is calculated after deducting the waiting period from the employee's plan start date. This is also applicable if the employee moves into the plan in the middle of the payout period.

Select this checkbox and Dayforce calculates the proration factor for new hires based on the number of days that they worked during the payout period from their hire date.

When the Prorate by Eligibility and the Prorate for New Hire checkboxes are selected, and if an employee is eligible in a plan before the hire date, then the proration factor is calculated based on the eligible days in the payout period and the hire date won’t be shown.