Create Allowance

The following image displays the fields that require your input while creating an allowance.

See Steps to Set up Allowance [page 9], to get an overview of system configurations required to create an allowance.

To configure the allowance in your system, perform the following steps:

1. Go to Admin Center and in the Tools Search field type Benefits Admin Overview. The System opens the screen.

Select Create New - Benefit.

2. In the Benefit Type field, choose Allowance.

3. Enter the generic data such as benefit name, type and so on. For more information, see Create Benefit - Generic Data [page 55]. In addition to the generic fields, the below mentioned fields are also available:

○ Payroll Integration: Select this checkbox if you want the system to replicate the payment information to either compensation portlet or deduction portlet. Based on the benefit type that you select, system creates payment information entries in one of the portlets.

The table below displays the portlet corresponding to each benefit type:

Table 12:

For allowance and reimbursement benefit type, you must maintain the below mentioned event reasons code in the system:

○ PCAssignment: Event reason is to start the compensation assignment for benefit amount.

○ PCAssignmentCompletion: Event reason is to complete the compensation assignment for benefit amount.

To create an event reason, perform the following steps

1. Go to Admin Tools and select Manage Organization, Pay and Job Structures 2. Under Create New, choose Event Reason. Enter all required field entries.

3. Save your entries.

Note

The compensation portlet displays this information only when the employee is eligible for the selected allowance.

○ Benefit Payment Options

○ Payment Mode: Select the mode through which an employee receives the claim amount/payment.

○ Pay Component: Select the relevant pay component. In case of payroll integration, the system uses this pay component to make a corresponding compensation entry.

Note

While configuring Benefit of type Deductible Allowance and the Payroll Integration field is set to yes, you must ensure that the Paycomponent has the following settings:

○ Is Earning: No

○ Recurring: Yes

○ Can Override: Yes

○ Is Default: Select either Yes or No against the payment mode. You must mandatorily select Yes against one of the payment modes.The system uses that payment mode as default in case the employee does not choose a valid option in the Payment Mode field.

○ Entitlement Details

○ Eligibility Rule: Select benefit rules, to define eligibility criteria for the benefit. If you have maintained the rule for entitlement amount, during runtime the system fetches this rule to determine the eligibility.You can also determine the entitlement amount through this rule. For more information on how to create a rule, see, Define Rules to Determine Benefit Eligibility and Entitlement Amount for an Employee [page 32]

Note

○ If you maintain both the entitlement amount and the eligibility rules, the system uses the eligibility rule to determine the entitlement amount. You can see this amount on enrollment and claim screen of the particular benefit.

○ If there is a change in the date from which the eligibility rule for a benefit is effective, you must ensure that the same date is maintained in Effective From field for the benefit. This is for the following reasons:

○ Benefit version tracking purpose.

○ Auto Enrollment and Reporting Jobs: These jobs check the eligilibility based on the effective date of the benefit (Effective From field). If you do not maintain the same effective dates for rule and benefit, the jobs will not determine the accurate eligibility of the

employee for the benefit.

You can do this by making a change in the Benefit description.

○ Entitlement Amount: Specify the maximum amount that an employee can claim for the selected benefit.

○ Currency

○ Dependent- Specific Rule: Select the relevant dependent specific rule. This rule determines the number of dependents. For more information, see Eligibility Rule to determine the entitlement amount based on the employee’s dependents’ information under Define Rules to Determine Benefit Eligibility and Entitlement Amount for an Employee [page 32]

○ Benefit Schedule and Frequency

○ Benefit Schedule: Select the schedule. Based on the period that you maintain in the schedule, the system determines the validity of enrollment and claim. If you want to create a benefit schedule, choose the Add. If you click on this button, the Benefit Schedule pop- up screen appears. Enter the following data:

1. Schedule Name: Specify the name of the schedule for a particular benefit.

2. Schedule Periods: Assign multiple periods where you have defined different claim and enrollment validity dates.In case you want to create a new period, choose the add button. If you click on this button, the Schedule Periods pop- up screen appears. Enter the following data:

○ Period Name

○ Enrollment Effective From: Enter the date from which the enrollment is valid.

○ Enrollmet Valid Until: Enter the date until which the enrollment is valid. After this date, the employee must renew the enrollment to continue being eligible for a benefit.

○ Enrollment Opens: Enter the start date for enrolling in a benefit. The employee can enroll for a particular benefit from this date.

○ Enrollment Closes: Enter the end date for enrolling in a benefit. The employee can enroll for a particular benefit until this date.

○ Claim Starts: Enter the Start date for claiming a benefit.

○ Claim Ends: Enter the end date for claiming a benefit. Until this date the employee can claim for a particular benefit.

○ Balance Carry Forward Upto Date: Enter the date up to which an employee can carry forward any unclaimed balances.

○ Frequency: Specify the frequency of occurrence of the benefit.

Table 13: Benefit Schedule Maintainence

Enrollment Required Field Benefit Type Field Maintain Following Schedules

Yes Reimbursement ○ Enrollment Period: Start date and

End date

○ Claim Period: Start date and End date

○ Enrollment Validity

Yes Allowance ○ Enrollment Period: Start date and

End date

○ Enrollment Validity

No Allowance ○ Claim Period: Start date and End

date

Note that, in this case you must al­

ways maintain the Claim End date as 31/12/9999 (DD/MM/YYYY).

For all the above cases, you have to maintain the schedules individually. For example, in case of a monthly schedule, you must maintain the schedule for each month individually.

Related Information

Quick Steps to Get Going [page 9]

6.2.1 Other Benefits

Benefits in which the employee is eligible for without enrolling or claiming, such as family day benefit.

Employee can view these benefits on their employee overview page. To get a detailed information about such benefits or its policies, the employees can use the link that appears against each benefit.

To configure other benefits in your system, perform the following steps:

1. Go to Admin Center and in the Tools Search field type Benefits Admin Overview. The System opens the Benefits Admin Overview screen. Select Create New - Benefit.

2. In the Benefit Type field, choose Other Benefits.

3. Enter the required data such as benefit name, type and so on. For more information, see Create Benefit - Generic Data [page 55].