Once we’ve calculated the amount of a payee’s earnings in the Incentive Rules, we need to determine how much of the earning to pay and when to pay it. This is where the Deposit Rule comes in. The deposit rule is the most important rule in a plan, since it is the output of this rule that acts as input for the internal calculations that generate the payment.
A deposit is created only if the incentive is available for deposit. For example, a calculation run in February doesn't generate a deposit output for a quarterly incentive rule if the quarter ends in March.
There are two types of Deposit Rules:
- Basic Deposit Rules use Incentives as their input
- Detail Deposit Rules use Credits as their input
Some things you can do in a Deposit Rule:
- Put a hold on all or part of a Deposit until a future period
- Differentiate or combine multiple incentives into a single deposit
- Assign Earning Groups and Earning Codes to a Deposit
Hold Functions In Deposit Rules
Hold functions are used to delay a compensation payment for the payee. This is done in cases where the company needs to wait to pay the appropriate compensation to the payee.
Hold Types include:
- Release Immediately: Do not place a hold.
- Indefinite Hold: This will hold the deposit indefinitely, until an Administrator manually releases the hold.
- Hold with Conditions: Holds a payment until a condition is true. For example, an employee can receive their bonus once they have reached 90 days of employment.
- Period Type: Release a payment after a certain number of periods.