Practice - Defining Taxable Benefit Rates

Distribution
Oracle HRMS

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Practice - Defining Taxable Benefit Rates
Overview
In this practice, you will learn how to define Taxable Benefit Rates. Taxable Rates are optional
and not commonly used, except with non-monetary Coverages. Ensure that you define
Coverages before you save this rate.

Assumptions
You can use either the local HRMS Manager or the local Super HRMS User
responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Set your effective date to 01-JAN-2007.

Tasks
Define Taxable Benefit Rates

Use the Standard Rates window to define rates. To do this, enter the following details:

Standard Rate XX_Rate

Status Active
General tab Select
Compensation Object XX_Spot Bonus Plan
Activity Type Employer Payroll Distribution
Tax Type Taxable
Usage Standard Contribution/Distribution
UOM Blank
Calculation Method tab Select
Calculation Method Multiple of Coverage
Enter Value at Enrollment check box Clear
Multiplier 25
Coverage Operator Multiply By
Rounding Code Round to Nearest Hundredth
Processing Information tab Select
Assign on Enrollment check box Select

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Display on Enrollment check box Clear
Recurring Once

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Solution Defining Taxable Benefit Rates
Define Taxable Benefit Rates

Taxable Benefit Rates are optional and are not commonly used, except with non-monetary
Coverages. Ensure that you define Coverage before you save this rate.

1. Navigate to the Standard Rates window.

Total Compensation > Rate/Coverage Definitions > Standard Rates

2. Query XX_Rate, which is the Standard Rate you defined earlier.

Note: Ensure that the Status is Active, the General tab is chosen, the Compensation Object is
XX_Spot Bonus Plan, and the Activity Type is Employer Payroll Distribution.

3. Select Taxable as the Tax Type.

4. By default, the Usage is Standard Contribution/Distribution.

5. Leave UOM blank.

Note: Ensure the Element and Input Required check box is clear. If you select this check
box, you must select an Element, and an Input Value.

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6. Select the Calculation Method tab.

7. Select Multiple of Coverage as the Calculation Method.

8. Ensure the Enter Value at Enrollment check box is clear.

9. Define a Multiplier representing the value of one non-monetary award, for example 25.

10. Select Multiply By as the Coverage Operator.

11. Select Round to Nearest Hundredth as the Rounding Code.

12. Select the Processing Information tab.

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13. Ensure you select the Assign on Enrollment check box.

14. Clear the Display on Enrollment check box.

15. Select either Recurring or Once in the Recurring list.

16. Save your work, and close the Standard Rates window.

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