Salary Based Bonus Form Type Incentive Template Setup

In this article, we will review how to create a salary-based bonus form type comp card. Incentive Templates can be found under the Account Management section.

Incentive Template Purpose:

Incentive templates are where you set up the boundaries for how an incentive form can be paid out. When creating a an incentive template, you assign profit share percentages, pools, and pool percentages. You can use as many incentive templates as you would like in a single payout.

The Salary Based Bonus form type can be used when your team member's bonus is a percentage of their salary. Their salary will be multiplied by a percent assigned to the team member's role to determine the bonus amount available for distribution.
Salary-based bonus form type

Salary-Based Bonus Incentive Template Setup

When creating an incentive template name, choose something that will represent the incentive forms that will use it, for example, Annual Salary-Based Bonus.

If you ever want to stop using an incentive template, switch the Active toggle off and you will no longer be able to select that comp card when creating a incentive form.

When the Performance Management Applies toggle is turned on, all bonuses distributed from that incentive template will be affected by the team members' performance management score. When this toggle is turned off, any bonus distributions using this comp card will not be affected by team members' performance management score. A typical scenario where you would turn this toggle off would be an incentive template used for your sales team that is commissioned solely based on contract amounts and not performance.

The Allow Manual Form Creation toggle was created to help minimize possible duplications by allowing form importing and manual form creation for the same incentive template. The toggle is on by default and anyone with permission to create incentive forms can manually create an incentive form for this incentive template. When the toggle is turned off, incentive forms can only be created with this incentive template if they are imported through a CSV file or integration. Admins in the account will still be able to manually create a form with that incentive template. 

The 1-Step Approval/Finalize toggle was created to reduce the number of steps it takes to for an incentive form to become eligible for a payout. Some clients complete their accounting review before entering their profit numbers into comp forms in which case, the third step of finalizing becomes redundant. When this toggle is turned on, keep in mind that the form approvers will now have the ability to approve and finalize the incentive form.

Form Number ID 1 Label is a form label that can be customized to identifiers that fit best within each organization. If an organization pays bonuses on a quarterly or bi-annual basis, they could label this field as the quarter.

Form Number ID 2 Label (Optional) is an optional label that could be used for further identification of your forms. You could label this field as the year.

When using the salary-based bonus form type, every team member must have an assigned salary amount and primary role in their team member card. To enter a team member's salary and primary role, go to Account Management > Team Members and select the edit button on the team member. Assign the team member's Salary and assign or create their Primary Role as shown in the image below.

Team Member information Card

Default Months is automatically set to 12 within the incentive template setup, this number will pre-populate in the form to show how many months the team member is being bonused for at the specific salary. For example, if you are paying out bonuses annually and a team member is hired in the middle of the year, you would change their month in the incentive form to 6. If you are paying bonuses out on a quarterly or bi-annual basis, adjust the default months as needed.

Salary-based bonus form type

Each primary role is then assigned a specific Eligible Bonus Percent, this percent can only be adjusted in an incentive template. Once an incentive form has been created, the Eligible Bonus Percent can no longer be changed in the incentive template. The eligible bonus percent will be multiplied in an incentive form by the team member's salary and adjusted based on the default months applied to calculate their eligible bonus amount.

Salary-based bonus form type