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 Calculating FICA on Incentive Payments

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  • ApptioPlanning(ITP/ITFMF)
Dawn Kassube's profile image
Dawn Kassube posted Wed April 05, 2023 11:53 AM

Hello,

How do you create a Labor Allocation Rule to calculate payroll taxes on Incentive Payments?  Currently we allocate based upon Base Salary but then there is no calculation on Incentive Payments.  Since Incentive Payments are a Labor Allocation Rule based upon Base Rate, how could this be accomplished.  

Any ideas would be greatly appreciated.

Thank you


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Luca Di Gregorio's profile image
Luca Di Gregorio posted Tue April 18, 2023 09:16 AM  Best Answer

If I've understood correctly
a) Incentive Payments = Base Salary * x%, configured in Labor Allocation Rules.
b) And you would like to achieve: Payroll Taxes = Incentive Payments * y%.

If b) is correct, you could add this rule in Labor Allocation Rules: Payroll Taxes = Base Salary * x% * y%


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Rene Norskov's profile image
Rene Norskov posted Wed April 12, 2023 08:52 AM

@Dawn Kassube I've passed your question to our ITP experts.


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Dawn Kassube's profile image
Dawn Kassube posted Wed April 19, 2023 10:08 AM

Thank you so very much Luca.  My manager and I had actually thought that formula too.  Unfortunately you cannot use the same GL Account Number in Labor Allocation Rules so we will create a dummy account which rolls up to the same Account Group.

Once again "Thank You"!


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