Compensation Cycle One-Time Payments

Enabling the Feature

1. Navigate to Settings > HR Setup > Compensation Management > Compensation Setup 
2. Click the pencil to edit the compensation cycle
3. In the Pay Changes Type Widget:
   1. Check the Used box to open the pay change type in that row. If you have one open for base compensation increases, you will need a separate row open for lump-sum one-time payments
   2. Label: The name of the pay change type. Enter something like "Lump Sum Bonus"
   3. One Time Payment: Mark this box to open the earning code, and review the information below to ensure you choose the correct earning code

Choosing your Earning Code

• When the compensation cycle is finalized, the one time amount will show up as a Scheduled Earning with an annual limit that matches that amount, so that it will only pay once this year.
• Make sure the Earning Code you choose is not one that the employee has been paid using throughout the year.
  • Best Practice: Have one special earning code you use specifically for Compensation Cycles!
• If the one time payment is a bonus, you may need to ensure the earning code type has a supplemental tax rate. 
  • View our knowlegebase article about Supplemental Tax Rates to learn more

The Importance of Effective Dates

• When the compensation cycle is finalized, the one time amount will show up as a Scheduled Earing using the Pay Change Effective Date with an end date of one year later
• If your Pay Change Effective Date is not 1/1, be sure to mass edit your end dates so that these amounts are not carried over and paid again in the new year
  • Go to Team > Payroll > Employee Payroll Maintenance > Earnings
  • Filter to the Earning Code chosen and select all checkboxes
  • Click the Mass Edit button on the top right
  • Enter in the End Date and press the Save button

Using a Target Amount

• The Fuse system can automatically pull in one time bonus amounts using HR Custom Fields that have currency amounts attached at the employee level

• To set up Target Amounts:
  • Enable the Use Target Amount checkbox (Settings > Global Setup > Company Setup > HR Settings)
  • Create an HR Custom Field with the type of Currency
  • In the Target Amount Field of the Compensation Cycle, chose this HR Custom Field