A corporation is implementing Oracle Fusion Workforce Compensation and the new salary basis is being created.
For an hourly paid employee, which option is true regarding the Annualization factor in the salary basis? (Choose the best answer.)
A. For all hourly paid employees, a new salary basis needs to be created and associated that uses a frequency of "Hourly," and the Annualization factor will be the number of hours in a work year.
B. Whether the employee is paid hourly or not, the Annualization factor is the multiplication factor used to convert base pay at the selected frequency to an annualized amount. So any frequency can be used and the corresponding Annualization factor can be determined.
C. The Annualization factor used in salary basis is only for display purpose. The amount that is paid to the worker is always determined by the pay period on the payroll linked to worker’s assignment.
D. The Annualization factor used in a salary basis is only for display purpose. The amount that is paid to the worker is always determined by the sum of all the components of the salary basis multiplied by 12.
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The correct answer is B.
Reference – ‘The annualization factor is the multiplication factor used to convert base pay at the selected frequency to an annualized amount that enables you to see how much a worker would be paid over a year at the current rate. The following table shows the default factors supplied for the frequency options.’