How to Create a New Benefit Type Rate Rule

The process of creating a benefit type rate rule is a two stage process that involves the following:

creating the rate rule header

defining the contribution rate for one or more validity periods.

To define the contribution rate for a validity period, you must select the pay code group that defines the earnings on which the employee benefit contributions will be calculated. Therefore, ensure the relevant pay code groups are configured before you attempt to create a new rate rule.

To create the rate rule header, follow the procedure below.

1.	Navigate to Payroll > Maintenance > Employee Benefits > Benefit Type Rate Rules. The Employee Benefit Type Rate Rule Maintenance screen opens.
2.	Click Add. The Benefit Type Rate Rule Entry screen opens.
3.	In the Name field, key in a unique name for the rate rule. This name will be listed wherever a rate rule can be selected throughout the Pay module.
4.	In the Administrator field, select the name of the employee benefit scheme administrator to which this rate rule applies.
5.	In the Employee Benefit Type field, select the type of employee benefit to which this rate rule will apply.
6.	In the Apply To field, select Agreements or Standard Rates if the rate rule is to apply to job orders that are subject to agreement rates or standard rates respectively. Alternatively, select Both if the rate rule is to apply to job orders regardless of whether they are subject to agreement or standard rates.
7.	In the Week Ending Day field, select the day of the week that constitutes the end of a week for the purposes of this rate rule. For example, where the selected day is Sunday, then a week is defined as Monday - Sunday.
8.	In the Status field, select Released if you want the rate rule to be available for use as soon as it is saved. Otherwise, leave the Pending option selected. This will allow you to save the rate rule without making it available for use so that you can complete the configuration at a later stage.

At this stage, you will need to add a contribution rate for at least one validity period before you can save the new rate rule record. The process of adding a contribution rate rule differs depending on the contribution basis
To add a contribution rate rule for a validity period, follow the procedure below.

1.	On the Benefit Rate Rule Entry screen, next to the Start Date field, click the calendar button and use the calendar control to select the date on which the new contribution rate is to become effective.
2.	Next to the End Date field, click the calendar button and use the calendar control to select the date on which the new contribution rate will expire. Alternatively, skip this step if the contribution rate is to remain effective indefinitely.
3.	Using the Benefit Rate Rule screen, select and key in the relevant contribution rate depending on the contribution basis that is required. Contribution Basis Defines the basis on which the contribution rate is applied. This field is mandatory. The options available are as follows: - Percentage: indicates the contribution rate is based on a percentage of earnings - Fixed: indicates the contribution rate is a fixed monetary amount - Greatest Amount: indicates the contribution rate is based on a percentage of earnings or a fixed monetary amount, depending on whichever is greater. Percentage Value Defines what percentage of earnings are accrued towards an employee benefit. For example, if employee benfits that are subject to this contribution rate are to be accrued at 2% of earnings, key in 2 in this field. This field is available only if the contribution basis is Percentage or Greatest Amount, in which case it is mandatory to specify a value in this field. Pay Code Group for % Calculation Pay code group that defines the earnings to which a percentage-based calculations apply. This field is available only if the contribution basis is Percentage or Greatest Amount, in which case this field is mandatory. Fixed Value Fixed amount that is accrued towards an employee benefit per applicable period. The period to which the amount corresponds must be selected in the Fixed Per field (see below). This field is available only if the contribution basis is Fixed or Greatest Amount, in which case it is mandatory to specify a value in this field. Fixed Per Determines the period to which a fixed contribution amount applies. The options available are as follows: - Pay Period: indicates the fixed amount will be accrued each pay period - Week: indicates the fixed amount will be accrued each week - Day Worked: indicates the fixed amount will be accrued each day that a payee works Hour Worked indicates the fixed amount will be accrued each hour that a payee works. This field is available only if the contribution basis is Percentage or Greatest Amount, in which case it is mandatory to select an option in this field. Pay Code Group to Define Period (for fixed) Defines the pay code group that determines which earnings are used to indicate that a payee worked on a given day. This field is available only when the contribution basis is Fixed or Greatest Amount and the fixed value is applied per day or per hour worked, in which case it is mandatory to select an option in this field. Cap Fixed at Defines the maximum amount in contributions that can be accrued during a given period. This field is available only if the contribution basis is Fixed or Greatest Amount and the fixed value is applied per day or hour worked, in which case it is mandatory to specify a value in this field. Cap Per Determines the period to which the cap value applies. The options are as follows: - Day: indicates that the cap value is a daily limit - Week: indicates that the cap value is a weekly limit - Pay Period: indicates that the cap value is a per-pay period limit. This field is available only once a value has been keyed in the Cap Fixed At field, at which point it is mandatory to select an option in this field.
4.	Click Save. The new benefit type rate rule is saved and the Employee Benefit Type Rate Rule Entry screen closes.