Equity Pay Component Settings

Enter a name for the equity pay component.

Select an equity type for the pay component. This list shows active equity types defined in the Equity Types tab of Compensation Setup > Equity Setup. See Create Equity Types.

Select the vesting schedule for the equity type. This list shows active vesting schedules defined in the Vesting Schedules tab of Compensation Setup > Equity Setup. See Create Vesting Schedules.

Enter the date when the grant expires if the employee hasn’t accepted or confirmed receiving the equity.

Enter the date when the equity is given to employees.

Enter the value of the equity on the grant date. You can enter an amount of up to two decimals. When the grant price is configured, the compensation worksheet shows the Quantity column indicating the number of units for the equity award.

Role feature access: Compensation Setup > Rounding Rules

Select the rule to round the quantity of equity allocated to employees in the compensation cycle.

This drop-down list shows active rounding rules configured with the Quantity rule type in Compensation Setup > Rounding Rules.

When a rounding rule is selected, Dayforce calculates the equity quantity by dividing the allocated cash amount by the grant price, then rounds the result based on the defined rounding increment and method. The Quantity column in worksheets shows the rounded value.

For example, if the allocated amount is $7,000 and the grant price is $13.15, the calculated quantity is 532.319392. With a rounding increment of 10 and rounding method of Round Down, the worksheet shows 530. With a rounding increment of 1 and rounding method of Round Up, the worksheet shows 533.

You can change the quantity rounding rule after the compensation cycle is published, until it’s approved. See Create Rounding Rules.

Note: This drop-down list shows when you enter a value in the Grant Price (Currency) field.

Role feature access: Compensation Setup > Rounding Rules

Select the rule to round equity allocations based on the compensation cycle currency.

This drop-down list includes active rounding rules configured with the Cash rule type and the Cycle Currency rounding basis in Compensation Setup > Rounding Rules. You can allocate equity in worksheets using the rounding increment defined in the selected rule. See Create Rounding Rules.

Note: This drop-down list shows when you select a cash-based equity type in the Equity Type drop-down list.

Select the color used to identify the equity pay component in the worksheet.

Defines the type of target for the equity pay component.

Select the target type from the list:

• None: This option is selected by default, and the pay component doesn’t use targets to award equity to employees in the compensation cycle.
• Flat Amount: Select this option, and the pay component uses a flat amount as the target type to award equity to employees in the compensation cycle.

Enter the amount for the Flat Amount target type in the currency as configured in the Details tab of Compensation Setup > Compensation Cycles.

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

Select the Equity guideline that you want to use for the equity pay component if the cycle currency matches the equity guideline currency. When the target type is selected as None, the drop-down list shows guidelines configured with the Amount guideline type. When the target type is selected as Flat Amount, the drop-down list shows guidelines configured with the Percent guideline type. See Configure Compensation Guidelines.

If you select a guideline that uses flat amounts, Dayforce shows a confirmation dialog box informing you of the following:

• Proration won’t be applied to allocation amounts using this guideline.
• The pay component is shown in the worksheet without the allocate by percentage column.
• Managers can allocate using a flat amount only, and guideline values are shown as flat amounts in each employee’s local currency.

Click OK to select the flat amount guideline or click Cancel to clear the selection in the drop-down list.

Defines the proration rules for the equity pay component. This section shows when the Target Type is selected as None or Flat Amount.

Note: Proration rules can’t be used for equity pay components that use flat amount guidelines.

Select the checkbox, and Dayforce prorates employee allocations based on the number of days each employee was inactive during the compensation period.

When you select the Prorate for Inactive Periods checkbox, Dayforce shows the Prorated Inactive Periods drop-down list. You can select the employment statuses that identify inactive periods for employees in your organization.

When you allocate equity for an employee in a worksheet, Dayforce deducts the number of days they had an inactive status from the total number of days in the compensation period to prorate the allocation amount.

For example, if the compensation period is January 1, 2020 to December 31, 2020, and an employee was on leave (inactive) for three months during the compensation cycle period, they would receive 75% of the allocated amount.

Select the checkbox, and Dayforce prorates the allocation for new hires based on the number of days they worked during the compensation period.

For example, if an employee was hired on July 1, 2020 and the compensation cycle period is January 1, 2020 to December 31, 2020, then the salary increase for the employee is prorated by 50% because they only worked for half the period.

Role feature access: Compensation Setup > Rounding Rules

Select the rounding rule used to round the proration factor applied to equity allocations in compensation worksheets. Dayforce rounds the calculated proration factor before applying it to the bonus payout.

This drop-down list includes active rounding rules configured with the Percentage rule type in Compensation Setup > Rounding Rules.

If no rounding rule is selected, Dayforce rounds the proration factor to the next whole number by default.

Note: This field shows when you select the Prorate for Inactive Periods or Prorate for New Hire checkbox.

Defines how the budget is calculated for the equity pay component.

Select this checkbox and Dayforce calculates the budget based on the option selected in the Eligible Salary section.

Note: This field shows when you set the Target Type as None. You can’t select the checkboxes in the Proration Rules section when this checkbox is cleared.

Select the checkbox, and the configured flat amount is applied to each employee's record when generating worksheet budgets for managers in the Budgets tab of Compensation Setup > Compensation Cycles.

Note: This field shows when you set the Target Type as Flat Amount.

Select the checkbox, and the configured proration rules are applied to each employee's record when generating worksheet budgets for managers in the Budgets tab of Compensation Setup > Compensation Setup. This ensures that budgets are calculated and distributed more accurately for employees in the cycle.

Note: This field shows if the proration rules are selected when the Target Type is set as None and Flat Amount, and if one or more proration rules are selected for the pay component. This field doesn’t show when the Import Eligible Salaries option in the Eligible Salary section is selected.

Defines how each employee’s salary is used for equity calculations.

Note: This section shows when the Percentage of Salary checkbox is selected in the Budget Calculations section.

Select this option to use employee salaries as of the current date.

Select this option and enter a date to use employee salaries on a specific date.

Select this option to prorate employees’ salaries if they had a salary change during the compensation period. If their salary hasn’t changed, Dayforce uses their salary as of the end date of the compensation period.