The Apply Earnings Rule is used to determine which generated earnings are calculated and applied, as well as what time-driven earnings are applied to employee pay; employees are only paid for the earnings that have been applied by the Apply Earnings Rule in their payroll policy. For example, a generated earning that pays employees a bonus that is 10% of their regular earnings needs to be applied by the rule in order for the application to calculate it and add the amount to employee pay.
For each generated earning, their configuration defines how the application calculates the earning amount, such as a flat amount or a percentage of an employee's regular earnings. The rule just specifies which generated earnings are calculated.
While the amount of pay time-driven earnings contribute is controlled by the amount of worked time employees record and their pay group's payroll mappings.
Apply Earnings Rule Parameters
Eligible earning type
Before You Begin: Each earning code is controlled by an earning type, displayed in the Earnings tab of Payroll Setup > Earnings and Deductions. For more information about earning codes and types,
Select what earning types are applied. The application applies any earning with the specified type unless it is specifically excluded by the Ineligible earning parameter. Leave blank and the rule does not consider earning types when determining which earnings to apply.
Ineligible earning type
Select what earning types aren’t applied. The application does not apply any earning with the specified type. Leave blank and the rule does not consider earning types when excluding earnings.
Eligible earning
Select the earnings that the rule applies.
Although a single instance of the Apply Earnings Rule can be configured to apply several earnings, it is common to configure multiple instances of the rule, each applying only a subset of all the earnings the application adds while calculating net income from gross pay, so that earnings are applied in the correct order. If there are any earnings configured to rely on other earnings in order to be calculated, these need to be applied in separate instances of the Apply Earnings Rule that are then placed in the correct order on the payroll policy; if a bonus earning is 10% of regular earnings, then the instance of the rule that applies regular earnings must be placed higher in the payroll policy's order of rules than the rule that applies the bonus.
Ineligible earning
Select the earnings that are excluded and not applied by the rule. Leave blank and the rule does not explicitly exclude any earnings.
Apply Employee Default Labor
Select this checkbox to populate details for the earning in Payroll and the general ledger based on the default labor defined in the employee's profile.