Compensation (Comp) worksheets can be created to compare assignment candidates, to send employee payment information to payroll and to inform employees of their international compensation.

The Equus Platform compensation module supports home-sourced, host-sourced and split payment compensation plans.

Compensation (comp) worksheets are created for an assignee to reflect compensation for a specific payroll pay period (calculation period).

Comp worksheets can be created either by batch or manually one-by-one. In both cases compensation worksheets are created from an assignment compensation worksheet template.

Manually Create Compensation Worksheets

Create Compensation Worksheets through a batch method

Note: Screen help is available on many screens in the system. If a Help link appears in the upper-right hand corner of the screen, then help exists for that page.

Allowance Methodology

Under the Allowance methodology, only payment transactions will be written. If a payment option is chosen that creates payments in two locations (both Home and Host), then two payment transactions will be written.

Only the Primary Account on the compensation worksheet data dictionary record will be used during transaction processing. If a payment is required for both Home and Host, then both transactions will use the Primary Account. If using the user report writer to create output, the ENTRY_COMP.Type value for these transactions is "Non-Full Comp Transactions."

Please see the Split Payments section for allowance examples.

Total Compensation Methodology

The Total Compensation and Allowance Methodologies have two major functionality differences: Total Amount Reported to Wages and Payment Reallocation.

Please see the Split Payments section for total compensation examples.

Total Amount Reported to Wages & Payment Transactions

Under this methodology, both payment records and amount to report to wages transactions will be created. Three accounts could be needed per compensation worksheet line item in order to create transactions for both payment and wage records. The Compensation Worksheet Dictionary Line Items screen allows for three accounts:

Payment Reallocation

Payment reallocations allow for a defined amount of funds be sent to the secondary (non-primary payroll system) location without specifying a compensation line item to move the funds from. To use the payment reallocation functionality, a compensation dictionary line item must be created with a base salary relationship of “Reallocation.” Only the Secondary and Primary Deduction accounts will be used for a Reallocation dictionary line item. The reallocation request transaction will use the secondary account. The offset for the primary location will use the primary deduction account.

Reallocation line items will have not retro amounts calculated. See the Retroactive Compensation Worksheets section or more details.

Calculation Method

Line items in the drop down list are defined in the Compensation Worksheet Dictionary screen located on the Configuration tab.

The calculation method drop down list options are Calculate (Home Currency), Fixed Amount in Host Currency, and Fixed Amount in Home Currency.

Calculate (Home Currency)

This drop down selection will calculate the line item in the home currency.

Example #1:

Base Salary is a line item on a comp worksheet and the calculation method is “Calculate (Home Currency).

This calculation will look for the effective base salary amount on the Compensation screen and calculate the amount based on the number of pay periods per year specified on the payroll system.

If a “Fixed Amount” option is chosen, then the user will need to manually specify an amount for the compensation worksheet.

Example #2:

ORC Hypo Tax is a line item on a comp worksheet and the calculation method is “Calculate (Home Currency). This calculation will look for the most recent (by default) ORC tables and information on the Compensation screen to find the appropriate hypo tax amount.

If a “Fixed Amount” option is chosen, then the user will need to manually specify an amount for the compensation worksheet.

Fixed Amount in Home Currency

The line item amount will be in the Home currency. The exchange rate adjusts the host amount.

Fixing the amount in home currency allows a payment made in the home location to remain the same from period-to-period regardless of exchange rate changes.

Fixed Amount in Host Currency

The line item amount will be in the Host currency. The exchange rate adjusts the home amount.

Fixing the amount in host currency allows a payment made in the host location to remain the same from period-to-period regardless of exchange rate changes.

One Time Payments

The purpose of this field is to allow balance sheet reports to segregate the one time payments from the recurring (non one-time) payments. This field is not used by the compensation worksheet calculations.

This field can be set on the following screens:

Salary Caps (Minimum / Maximum) for Calculations

This feature allows you to specify, per line-item, a minimum and/or maximum value for the salary amount that is used for calculations. They can be specified at the company or assignment template level, or at the individual worksheet level.

The amount(s) can be specified in any currency, and an exchange rate (to home currency) can be specified or automatically looked up (in either case the exchange rate used will be displayed). There are two options for looking up an exchange rate: Lookup If Needed and Always Lookup.

If Lookup If Needed is selected, the system will first check to see if the min or max salary currency is the same as the host currency.

If it is it will use the inverse of the compensation worksheet currency. If it is not, it will go look at the exchange rate tables.

If Always Lookup is selected, the system will go directly to the exchange rate tables.

The requirement that there be such a cap can be set within a Compensation Worksheet Template (Company or Assignment level), and also within a Compensation Worksheet (Effective, Draft, or Retroactive) by checking the Require Salary Cap checkbox. If an Assignment Template is configured to have a salary cap(s), but neither amount has been entered for the appropriate line items, the user will see an orange warning message at the top of the Assignment Template screen (also, the user will get an error when trying to create a worksheet from such an incomplete template).

When calculations are performed, the effective Annual Base Pay/Annual Pay Override for Calculations will be compared to the caps, if present, and the caps will be used instead when appropriate. Note that these fields are only used and visible when the calculation method is “Calculate (Home Currency)” and the line item does not have a data provider of ECA.

Minimum and Maximum Amounts

This feature allows you to specify a minimum amount and/or a maximum amount for the line item. This can be set within an Assignment Compensation Worksheet Template or within a Compensation Worksheet (Effective, Draft, or Retroactive) and must be entered in the Home Currency. Minimum and Maximum Amounts can be applied to line items using the Calculate (Home Currency) Calculation Method.

If a Minimum Amount is specified and the line item amount is less than the Minimum Amount, the Minimum Amount will replace the line item amount. **There is one exception to this rule: if the line item calculation results in a blank/NULL value, it will remain blank/NULL.

If a Maximum Amount is specified and the line item amount is more than the Maximum Amount, the Maximum Amount will replace the line item amount.

Begin Date and End Date

Regardless of which calculation method is selected, line items can be prorated for a number of calendar days within a pay period by setting the Begin Date and End Date.

If the line item Begin Date falls between the pay period (payroll calendar) begin and end dates, the Begin Date Proration calculation is as follows:

If the line item End Date falls between the pay period (payroll calendar) begin and end dates, the End Date Proration calculation is as follows:

Change Threshold

(Revert to previous worksheet amount if current amount is within threshold range)

This option allows the user to control how easily a line item can change.

If the line item amount changes from 100 to 103 from one period to the next period and the threshold setting is:

then the amount on the worksheet will remain what it was before (100).

Essentially it will compare the current period amount (fixed or calculated) to the previous period amount for the particular line item. If the current amount is within the threshold range of From Percentage (-) and To Percentage (+) the previous period amount is used. While only percentages can be specified on a company-level template, a threshold type of Amount can be set on the Assignment Compensation Worksheet Template or Effective Compensation Worksheet. In this case, the current amount is compared to the From Amount (-) and the To Amount (+) and if within the range, the previous period amount is used.

Note: The threshold does not manage changes in exchange rate if an exchange rate is used to calculate a payment amount.

Ex. The line item amount is calculated in home currency; the payment is to be made in the host location; amounts in home currency are the same. If the exchange rate changes from period to period then the payment amount will change and a threshold setting will not deter this change.

Order of Precedence

If more than one of the above line item adjustments is used, they will be applied in the following order:

Accounts

A system chart of accounts can be created to support the international business. Accounts are added at the system-level and can be hidden (inactivated) at the company-level.

Click on

to add a new account. To edit an existing account, click on

.

Determine which accounts should be used for a company

Note: Account names, descriptions, numbers and availability can be overridden for each company.

In order to create comp worksheets for your assignments, Payroll Systems will need to be created. Payroll systems determine the pay schedule for compensation worksheets, the currency to generically send payment requests to primary payroll, the wage codes to communicate to the payroll system and the standard periodic reporting requirements for the payroll system.

Below are some details on setting up a payroll system:

Payroll Periods need to be created for each payroll system that you will be creating balance sheets for or reporting to (shadow payroll or secondary payment requests).

Calendar Column Fields:

Status Column Fields:
The Pay Period Status references the place in the compensation worksheet process for the pay period/payroll calendar. The steps of the compensation worksheet process will automatically update the pay period status (see each process screen for rules). While the pay period status is automatically updated (even open and closed) by the compensation worksheet process, the pay period status may be manually updated through this screen.

Each step in the compensation worksheet process has a corresponding Pay Period Status:

The availability of pay periods in a compensation worksheet processing screen is dictated by the pay period status:

​Feed Due Date Fields:
The Payroll Feed Due Dates are set to show the user when payroll feeds should be sent for payment (most likely to a payroll system or to accounts payable). If payroll reporting is not run for the payroll reporting type and a due date is set, then an overdue warning will appear on the Payroll Reporting Dashboard.

AutoFill Payroll Calendar
The AutoFill Payroll Calendar pop-up was designed to support weekly, semi-monthly, bi-weekly and monthly payroll calendars. Payroll Calendars may still be created manually by clicking the "New" button.

The AutoFill function is designed to keep users from creating overlaps in payroll periods. The user will be warned if a gap in payroll periods is created.

For example, if you want to create a monthly payroll calendar where the begin date is the 1st of January 2023 and the end date is the last day of that same year, you can use the Autofill option as below:

Assign Primary and Secondary Payroll Systems to Assignment.

Once payroll systems have been created, they need to be assigned to an employee’s assignment in the system. If using the Allowance Methodology, an assignment only requires one payroll system (from or to payroll system fields on the assignment screen) and that payroll system should be marked as the primary system. When using the Total Compensation Methodology both Primary and Secondary Payroll Systems are required.

Note: The secondary payroll system is required for the total compensation methodology due to potential shadow reporting requirements and the ability to split payments and send payment requests to the non-primary payroll system.

From the Assignment screen, define the From Payroll System and To Payroll System.

Define Comp Worksheet Dictionary Items, by creating a dictionary line item for each type of calculation that should appear on a comp worksheet

A standard list of dictionary items are delivered with the software, the standard items include the AIRINC, ECA, Mercer and ORC calculations that EQUUS supports:

In addition, there are calculations that can be added to the system on the Company Calculations page. These calculations are not delivered with the software but can be added with the help of a Client Account Executive or Account Manager.

These calculations include:

Note: for additional calculations that are used for pulling values from Compensation Calculations and the Compensation Data Repository, please see the following appendices:

Once these Company Calculations are added to the system, Company-level Dictionary Line Items can be added using these calculations.

To define dictionary line items, click the New link in the upper left hand corner of the grid.

By Company

Dictionary line items can be overridden at the company level. If a client doesn’t use a data provider, then you can hide all of the AIRINC, ECA, Mercer or ORC line items by inactivating those data dictionary lines at the company level.

For each company you can also add new data dictionary lines.

All compensation worksheets are created from assignment compensation worksheet templates. When creating an assignment comp worksheet template, the user can choose to create a new template from scratch or copy an existing company comp worksheet template.

Company comp worksheet templates should be created to give you a starting point for creating assignment compensation worksheet templates. Company templates could be created by policy (long term, short term, expatriation, repatriation, etc.).

When compensation worksheets are created, they are created from an assignment compensation worksheet template.

Worksheets can be manually created from the Compensation Worksheet menu by selecting a specific calculation period and selecting the "New Effective Compensation Worksheet" button. Compensation worksheets can also be created from a Compensation Worksheet Batch.

These compensation worksheets will also be created from assignment compensation worksheet templates.

Each Assignment/Relocation can have one and only one Assignment Template and an Assignment Template must exist for a Compensation Worksheet to be created.

When creating a new assignment template, you have two options:

There are two screens that are used to create Assignment Templates:

Assignment Compensation Worksheet Template Details screen

The main Assignment Compensation Worksheet Template Details screen is the starting point for adding or editing an Assignment Template.

This screen also includes a grid of all the Line Items that are included on the Assignment Template.

Delete

Line Items can be removed from an Assignment Template from this screen by simply checking the Delete box and clicking Save. There will be no confirmation that the Line Item will be deleted so be careful not to accidently check this box.

View/Edit Pencil Link

The Line Item grid will show details about the line items that can be viewed/edited.

Line Item Caption

The Line Item Caption specified or the Line Item Name if the caption is not specified.

Calculation Method

The Calculation Method options are calculated or fixed and home or host currency.

Fixed Amount

The fixed amount for fixed amount line items and allows the edit of the amount. Reallocation amounts cannot be edited.

If a Begin and End Date is specified it will be shown in this column as well.

Display Order

The order the line items will appear, this can be edited to reassign the order.

Line Item Readiness Flag Column

This is the last column in the grid. It does not have a column header. It will show a green checkmark when the line item has met a specific set of criteria and an orange exclamation point when any of those same set of criteria fail.

Important: This flag is an indicator that something is missing from the line item that is needed to calculate an amount on a Comp Worksheet; It does not guarantee that the line item will always calculate without error. All line items should be review for accuracy and completeness.

The set of criteria that is checked includes everything listed in the Assignment Template Validation section below relating to line items OR missing prompted calculation inputs for Mercer, AIRINC and custom calculations.

The prompted calculation inputs for Mercer show in the Mercer Inputs section on the Line Item Details screen. The prompted calculation inputs for AIRINC show in the AIRINC Inputs section on the Line Item Details screen. The prompted calculation inputs section for custom calculations show in the Calculation Inputs section on the Line Item Details screen.

Important: Prompted calculation inputs are not required in order to save a Line Item but are required to calculate an amount on a Compensation Worksheet. Missing prompted calculation inputs will show an orange exclamation point icon because it is important that the inputs be selected but it is up to the user to determine if it required on the Assignment Template.

Missing prompted calculation inputs for ORC calculations and the ECA COLA calculation will not show an orange exclamation point icon because these inputs are entered on this main Assignment Compensation Worksheet Template Details screen and do not require going into the Line Item Details screen.

Missing Fixed Amounts when the Calculation Method is Fixed Amount in Home or Host Currency will not show an orange exclamation point icon. It is up to the user to determine if it is appropriate to enter in this fixed amount on the Assignment Template

Assignment Compensation Worksheet Template Line Item Details screen

The Assignment Compensation Worksheet Template Line Item Details screen is used to add and edit line items. It can be accessed by clicking the New or View/Edit link on Compensation Worksheet Line Items grid on the main page.

The Save & Next button can be used to navigate quickly through all Line Items on an Assignment Template. Clicking the Save & Next button will save any changes made and then open the next Line Item on the Assignment Template. The display order of the Line Item is used to determine the next Line Item. When display order is not specified or duplicated the order is by creation date.

This button will be disabled when viewing the last line item on the Assignment Template.
The line item X of X count is also available on the top and bottom of the screen to make it easier to know what Line Item is being viewed in relation to the total number of Line Items that exist.

Assignment Template Incomplete or Incorrect Validation

An Assignment Template must meet a specific set of criteria in order for a Compensation Worksheet to be created from it. When any of these criteria is missing then an orange box warning will appear on the top of the main Assignment Compensation Worksheet Template Details screen that reads “This Assignment Template is incomplete or has errors".

This message usually occurs when copying a template from a company template because screen validation on the Assignment Template screens does not allow for an incomplete Assignment template to be saved.

This is the set of criteria that will cause the “This Assignment Template is incomplete or has errors" warning to show.

Assignment Template Checks (not specific to a Line Item)

Assignment Template Line Item Checks

When this warning is displayed, it is not possible to create a Compensation Worksheet for the Assignment/Relocation.

To resolve this warning, click View/Edit on the line items that have issues (signified by an orange exclamation point), enter the required fields and save the line item.

Note: If you click save on the comp worksheet line item, the screen will tell you which fields are required.

The Line Item Readiness Flag in the Compensation Worksheet Line Item grid discussed above will show an orange exclamation point when any of the above listed criteria fails OR prompted calculation inputs for Mercer, AIRINC and custom calculations are missing.

Important: Missing prompted calculation inputs for Mercer, AIRINC and custom calculations will not cause the “This Assignment Template is incomplete or has errors" warning and a Compensation Worksheet can still be created when prompted calculation inputs are missing (but no amount will be calculated.)

Exclude From Compensation Worksheet Creation

When effective compensation worksheet should not be able to be created for an assignment, the Exclude From Compensation Worksheet Creation setting on the assignment template can be used.

When the option is selected effective worksheets cannot be created for the assignment through the compensation worksheet screen or through any batches.

A warning on the Assignment Compensation Worksheet Template Details screen will appear that reads:

Draft worksheets can still be created when the exclude option is selected.