This section contains examples of business processes/needs and suggestions of how to configure Compensation Calculations to meet those needs.

Compensation allowances are well defined for my company per assignment type and location. We run a host based payment location.

I have a long term assignment template and short term assignment template defined for my company. I also have slightly modified versions of each for China outbound assignments, Argentina inbound assignments and Brazil inbound assignments. The templates include all the standard allowances and each are configured with the Host as the Payment Location.

I create an initial Compensation Calculation for each assignee during the authorization process. I use an Effective Date of when the assignment is expected to start so I get the most accurate data available. Once the assignment is approved, as the start date nears, I recalculate the Compensation Calculation in case newer information (such as exchange rates, data provider data, salary, etc.) is available. I then send the Compensation Calculation report to the assignee as well as to the host payroll letting them know this assignee is a new starter.

Each year, in June, I run the Compensation Calculations for all active assignments. I do this in batch, so I do not need to go to each assignment individually and create a new calculation. When I run the batch, I choose an Effective Date of May 1 and select to refresh exchange rates and the other information is also refreshed per the May 1 date. If any calculations error in my batch, I investigate and correct each (including recalculating the taxes) individually.

Once all calculations are complete, I then generate the Assignment Compensation Calculation Report to the employee, posting it to the employee portal with a notification email sent to each employee. I also generate the Compensation Report for Payroll. I download these from the batch screen and post them to our company’s share point as that the communication method we have in place between our Global Mobility Team and Payroll contacts.

Compensation allowances are not well defined for my company and assignment allowances are agreed during the assignment negotiation between the Assignment Manager and the Assignee. The Global Mobility Team is typically informed of these per a copy of the assignment letter. Although there are a standard list of allowances our company offers, which allowances an assignee receives and the amounts for each vary from assignment to assignment. We do have some maximum amounts for some allowances and some minimums for others; these are defined in the currency of our corporate headquarters. I communicate payroll instructions in January for the next twelve months.

Because of the great differences of allowances from one assignment to the next, along with the need set minimum and maximum amounts, we use Compensation Worksheets rather than Compensation Calculations.

I set up my payrolls with just one pay period per year (even though payroll runs every month). I set up a monthly payroll calendar so that I can run a report of all new joiners each month to send to payroll.

I have a company level compensation worksheet template, and it contains most of the allowances our company offers, with the minimum/maximum amounts set.

For each new assignment, I create an assignment level compensation worksheet template from the company template, and delete each allowance that does not apply. I then set any fixed amounts that are defined for that assignment. Finally, I add any additional allowances this assignee is to receive. Within each line item, I set the payment location; again, this is defined in the assignment letter. Within the assignment compensation worksheet template, I set the Begin Date equal to the first day of the assignment start month.

With each new assignment, I generate an Effective Compensation Worksheet for the pay period of the assignment start month. I generate a report to post to the employee portal and send an email to the employee as well. I also email a copy of the report to home and host payrolls notifying them of the new joiner.

Each year, in January, I update each of my payroll’s calendars to set each period of the prior year with a status of Complete. I then create the calendar for the current year. Next I run the compensation process for all payrolls. I do this in batch, so I do not need to go to each assignment individually and create a new calculation. When I run the batch, I choose January as the calculation period. Since I configured my payrolls with one pay period per year, the amounts are all calculated as annual amounts.